Income Tax Calculator - FY 2026-2027

Income Tax Slab Rates

New Regime Slab Rates		Old Regime Slab Rates
Annual Taxable Income (₹)	Tax Rate	Annual Taxable Income (₹)	Tax Rate
Up to ₹4,00,000	Nil	Up to ₹2,50,000	Nil
₹4,00,001 – ₹8,00,000	5%	₹2,50,001 – ₹5,00,000	5%
₹8,00,001 – ₹12,00,000	10%	₹5,00,001 – ₹10,00,000	20%
₹12,00,001 – ₹16,00,000	15%	Above ₹10,00,000	30%
₹16,00,001 – ₹20,00,000	20%	—	—
₹20,00,001 – ₹24,00,000	25%	—	—
Above ₹24,00,000	30%	—	—

* For resident senior and super senior citizens, the tax slab rates vary. 

What Are Income Tax Slabs? 

Income tax slabs refer to predefined income ranges taxed at different rates. These slabs are determined by the government. In India, higher income generally attracts higher tax rates. Taxpayers can choose between the new tax regime and the old tax regime. The new tax regime offers lower tax rates but allows only limited deductions and exemptions, whereas the old tax regime provides higher tax rates along with a wider range of deductions and exemptions. The final tax liability depends on the selected tax regime, applicable surcharge, rebate, and income taxable at special rates.

What is the New Tax Regime?

Under the Income Tax Act 2025, the provisions of the new tax regime are stated in Section 202 (previously mentioned in Section 115BAC of the Income Tax Act 1961). Compared to the old tax regime, the new regime has fewer deductions and exemptions. However, this tax regime is beneficial for middle-class taxpayers who do not have tax planning strategies and savings deductions.

New Tax Regime Slab Rates for FY 2025-26 (AY 2026-27) & FY 2026-27

The table below presents the tax slab rates under the new tax regime for FY 2025-26 and FY 2026-27 (AY 2027-28).

Income Tax Slab (INR)	Income Tax Rates
Up to 4,00,000	-
4,00,000 to 8,00,000	5%
8,00,000 to 12,00,000	10%
12,00,000 to 16,00,000	15%
16,00,000 to 20,00,000	20%
20,00,000 to 24,00,000	25%
Above 24,00,000	30%

Zero Tax on Income Up to ₹12 Lakh. How Does It Work?

Taxpayers with taxable income up to ₹12 lakh under the new tax regime may have a nil tax liability by claiming the rebate under Section 87A, subject to applicable conditions. However, the rebate is only available when the income is taxed under the normal slab rates. Considering this, special rate income, like online gaming income and capital gains, cannot use the rebate.

Confused? Let's understand with an example where a rebate is claimed.

For instance, Mr. X has a salary income of ₹12.75 lakhs per annum. Let's assume that apart from salary income, he has no other income. Further, the table below provides the calculation of the income tax of Mr. X under the new tax regime:

Particulars	Amount (₹)
Income Details
Gross Salary	12,75,000
Less: Standard Deduction	(75,000)
Taxable Salary	12,00,000
Income Tax Calculation (New Tax Regime)
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000 @ 5%	20,000
₹8,00,001 – ₹12,00,000 @ 10%	40,000
Total Tax Before Rebate	60,000
Less: Rebate under Section 87A	(60,000)
Final Tax Liability	₹0 (Nil)

Old Tax Regime Slab Rates for FY 2025-26 (AY 2026-27)

Over the past few years, there have been no changes in the income tax slabs stated under the old tax regime. To provide you with an idea, the table below states the income tax slabs and rates under the old tax regime:

Income Tax Slabs (in INR)	Income Tax Rate
Up to 2,50,000	-
2,50,000 to 5,00,000	5%
5,00,000 to 10,00,000	20%
Above 10,00,000	30%

Income Tax Slabs for Senior Citizens

For senior citizens (who are above 60 years), the old tax regime offers concessional tax slab rates. Considering this, the table below states the tax slab rates under the old tax regime for resident citizens:

Income Tax Slabs (in INR)	Income Tax Rate
Up to 3,00,000	-
3,00,000 to 5,00,000	5%
5,00,000 to 10,00,000	20%
Above 10,00,000	30%

Income Tax Slabs for Super Senior Citizens

The table below states the income tax slab rates for super senior citizens (who are above 80 years) under the old tax regime:

Income Tax Slabs (in INR)	Income Tax Rate
Up to 5,00,000	-
5,00,000 to 10,00,000	20%
Above 10,00,000	30%

Further, the new tax regime with limited tax deductions offers a beneficial tax slab rate, while the old tax regime with stricter tax slab rates offers a plethora of tax deductions.

Tax Deductions Available Under the Old v/s New Tax Regime

The following table shows the list of tax deductions available for taxpayers under the old and new tax regimes in India.

Tax Benefits	Old Tax Regime	New Tax Regime
Rebate under Section 87A	INR 12,500 (for income up to INR 5,00,000)	INR 60,000 (for income up to INR 12,00,000)
Standard Deduction	INR 50,000	INR 75,000
Section 80C Deductions	Allowed	Not Allowed
HRA Exemption	Allowed	Not Allowed
Home Loan Interest (Self-Occupied)	Allowed	Not Allowed
NPS Deduction	Fully Allowed	Only Employer Contribution
Set-off House Property Losses	Allowed	Not Allowed
Section 80D Deduction	Allowed	Not Allowed

How Much Tax Will You Pay? Salary-Wise Income Breakdown

The table below shows the comparison of taxes you pay under the new vs old tax regime at different income levels and the potential savings you made.

Taxable Income (in INR)	Taxable as per New Tax Regime (in INR)	Taxable as per the Old Tax Regime (in INR)	Savings (Old Tax Regime - New Tax Regime)
8,00,000	Nil (Rebate u/s 87A)	75,400	75,400
10,00,000	Nil (Rebate u/s 87A)	1,17,000	1,17,000
12,00,000	Nil (Rebate u/s 87A)	1,79,400	1,79,400
13,00,000	78,000	2,10,600	1,32,600
15,00,000	1,09,200	2,73,000	1,63,800
20,00,000	2,08,000	4,29,000	2,21,000
25,00,000	3,43,200	5,85,000	2,41,800
30,00,000	4,99,200	7,41,000	2,41,800

Further, taxpayers with taxable income up to INR 12,00,000 in the new tax regime pay zero tax by claiming a rebate under section 87A. Generally, compared to the old tax regime, for higher income levels, the new tax regime significantly offers lower tax liability if the taxpayer does not claim major tax deductions.

Additionally, use our income tax calculator tool and know in two minutes the most beneficial tax regime for you.

How to Use the Income Tax Calculator for FY 2026-27 (AY 2027-28)?

Follow the steps below to use the income tax calculator:

Step 1: From the available options, choose the Financial Year (FY) for which you want to calculate your taxes.

Step 2: Select your Taxpayer Type (Resident or NRI), Age Group, and Employment Type.

Step 3: Choose one of the following options:

• Compare Old vs New Tax Regime
• Old Tax Regime
• New Tax Regime

Step 4: Enter your Salary Income or Business/Professional Income.

Step 5: Provide additional income details, including Rental Income, Interest Income, Interest on Self-Occupied Home Loan, and Interest on Let-Out Property Loan.

Step 6: If you have Digital Asset (Crypto) Income, enter your Net Income, calculated as Sale Consideration – Cost of Acquisition.

Step 7: After entering all your income details, click "Continue" to add your Eligible Tax Deductions.

Step 8: If applicable, enter deductions under Section 80C, Section 80D, Section 80E, Section 80G, Section 80TTA, along with HRA, LTA, TDS, and other eligible deductions.

Step 9: Finally, click "Calculate My Tax" to instantly view your Income Tax Liability, Tax Breakdown, and the Most Beneficial Tax Regime.

Further, by comparing the old vs new tax regime as per your tax obligation, you can get a detailed tax breakdown and personalized tax saving recommendations. Additionally, several tax deductions like LTA, HRA, sections 80C, 80G, 80E, and 80TTA are available under the old tax regime only. This is because the new tax regime offers lower tax rates.

Income Tax Calculation Example for FY 2026-27 (AY 2027-28)

For instance, for the financial year 2026-27, Ms. Riya has the following income:

• Salary income: INR 15,00,000
• Interest from savings bank account: INR 7,000
• Freelancing business income: INR 50,000
• Home loan interest paid for self-occupied property: INR 1,50,000

Here is her income and tax outflow for FY 2026-27 calculation:

Particulars	Old Tax Regime (₹)	New Tax Regime (₹)
Income Details
Salary Income	15,00,000	15,00,000
Less: Standard Deduction	(50,000)	(75,000)
Taxable Salary	14,50,000	14,25,000
Freelancing Business Income	50,000	50,000
Savings Bank Interest	7,000	7,000
Gross Total Income	15,07,000	14,82,000
Eligible Deductions
Home Loan Interest (Section 24)	(1,50,000)	—
Savings Bank Interest (Section 80TTA)	(7,000)	—
Taxable Income	13,50,000	14,82,000
Total Tax Payable (Including 4% Cess)	2,26,200	1,06,392

In this scenario, the new tax regime reduces Ms. Riya's total tax liability by ₹1,19,808 compared to the old tax regime, making it the more tax-efficient option despite the additional deductions available under the old regime.

Surcharge and Education Cess

A surcharge is an additional tax levied on the income tax payable once taxable income exceeds the prescribed threshold. It applies when your taxable income is more than INR 50,00,000. To provide you with an idea, the table below showcases the surcharge rates under the new and old tax regimes for different income levels. Marginal relief is available where applicable to ensure the additional tax does not exceed the increase in income.

Income Level	Surcharge Rate under the Old Tax Regime	Surcharge Rate under New Tax Regime
Rs. 50 Lakhs to 1 Crore	5%	5%
Rs. 1 Crore to 2 Crores	15%	15%
Rs. 2 Crores to 5 Crores	25%	25%
More than Rs. 5 Crores	37%	25%

Income Tax Slab Rates – Historical Comparison (FY 2023-24 to FY 2025-26)

Over the past years, the income slab rates under the new tax regime have undergone several changes. To provide you with an idea of it, the following table shows the income tax slabs of past financial years.

New Regime Tax Slabs: FY 2023-24

Total Income (in INR)	Rate (in per cent)
Up to 3,00,000	Nil
From 3,00,000 to 6,00,000	5
From 6,00,000 to 9,00,000	10
From 9,00,000 to 12,00,000	15
From 12,00,000 to 15,00,000	20
Above 15,00,000	30

New Regime Tax Slabs: FY 2024-25

Total Income (in INR)	Rate (in per cent)
Up to 3,00,000	Nil
From 3,00,000 to 7,00,000	5
From 7,00,000 to 10,00,000	10
From 10,00,000 to 12,00,000	15
From 12,00,000 to 15,00,000	20
Above 15,00,000	30

New Regime Tax Slabs- FY 2025-26

Total Income (in INR)	Rate (in per cent)
Up to 4,00,000	Nil
From 4,00,000 to 8,00,000	5
From 8,00,000 to 12,00,000	10
From 12,00,000 to 16,00,000	15
From 16,00,000 to 20,00,000	20
From 20,00,000 to 24,00,000	25
Above 24,00,000	30

What is the Income Tax Calculator?

The Income Tax Calculator of Savetaxs is an easy-to-use and simple online tool that helps you to calculate your tax obligation in detail. The tool calculates your tax obligations according to the rules and provisions of the Income Tax Act, 1961. It also helps you to calculate your tax liability between the old and new tax regimes, helping you choose the more beneficial option. Additionally, our income tax calculator tool has been updated according to the proposed changes in the Union Budget 2026.

Features of the Savetaxs Income Tax Calculator

Our Income Tax Calculator is designed to make tax calculation simple, quick, and accurate. Whether you're a salaried employee, freelancer, business owner, or NRI with taxable income in India, the calculator helps you estimate your tax liability in just a few minutes.

Some of the key features include:

• Instantly compare your tax liability under the old and new tax regimes.

• Supports salary, business income, rental income, interest income, and crypto (VDA) income.

• Calculates the rebate under Section 87A wherever applicable.

• Includes Health & Education Cess and surcharge calculations.

• Supports major deductions such as Sections 80C, 80D, 80E, 80G, 80TTA, HRA, and home loan interest.

• Updated according to the latest income tax provisions for FY 2026-27 (AY 2027-28).

• Provides a detailed tax breakdown to help you understand how your final tax liability is calculated.

Who Can Use This Income Tax Calculator?

The Savetaxs Income Tax Calculator is suitable for anyone who wants to estimate their income tax liability before filing their return.

You can use this calculator if you are:

• A salaried employee receiving income from one or multiple employers.

• A freelancer or consultant earning professional income.

• A business owner calculating income tax on business profits.

• A pensioner receiving pension income.

• A resident taxpayer comparing the old and new tax regimes.

• An NRI with taxable income in India who wants to estimate their tax liability.

Whether you are planning your taxes at the beginning of the financial year or filing your income tax return before the due date, this calculator can help you make informed decisions.

Benefits of Using the Income Tax Calculator

Calculating income tax manually can be confusing, especially when you need to compare two tax regimes and consider multiple deductions. Our Income Tax Calculator simplifies the entire process.

With this calculator, you can:

• Know your estimated tax liability within minutes.

• Compare the old and new tax regimes side by side.

• Understand which tax regime is more beneficial based on your income.

• Reduce calculation errors that often occur with manual calculations.

• Plan your tax-saving investments more effectively.

• Make informed financial decisions before filing your Income Tax Return (ITR).

Tips to Reduce Your Income Tax Legally

If your tax liability is higher than expected, you may be able to reduce it through eligible deductions and exemptions, particularly under the old tax regime.

Some common tax-saving options include:

• Investing under Section 80C through ELSS, PPF, EPF, NSC, or life insurance.

• Claiming medical insurance deductions under Section 80D.

• Claiming home loan interest under Section 24.

• Making eligible NPS contributions.

• Claiming HRA and LTA exemptions, wherever applicable.

• Choosing the tax regime that results in the lowest tax liability.

Using the Income Tax Calculator before making investments can help you identify the most tax-efficient option.

Important Disclaimer

The Income Tax Calculator provides an estimate based on the information entered by you and the latest applicable tax provisions. The final tax liability may differ depending on factors such as income taxable at special rates, carried-forward losses, clubbing provisions, surcharge, marginal relief, and other applicable provisions of the Income Tax Act.

If you have multiple income sources or a complex tax situation, it is advisable to consult a qualified tax professional before filing your Income Tax Return.

Also Read:

Last Date to File ITR

Expert CA Consultancy