Tool
Indian Income Tax Calculator
Indian income tax under the new and old regimes for FY 2026-27, including the standard deduction, the section 87A rebate, marginal relief above ₹12 lakh, and 4% cess.
80C, 80D, NPS, home loan interest — old regime only
- Taxable income
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- Income tax after rebate
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- Health & education cess
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- Total tax
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- Income after tax
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- Effective tax rate
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FY 2026-27 (AY 2027-28) rates. Surcharge above ₹50 lakh of income is not modelled.
What the calculator applies#
Budget 2026 left both rate ladders unchanged, so these are the figures for FY 2026-27 (assessment year 2027-28).
| Old regime | New regime | |
|---|---|---|
| Nil up to | ₹2,50,000 | ₹4,00,000 |
| Slab rates | 5% to ₹5L, 20% to ₹10L, 30% above | 5, 10, 15, 20 and 25% in ₹4L steps, 30% above ₹24L |
| Standard deduction (salaried) | ₹50,000 | ₹75,000 |
| Rebate under section 87A | ₹12,500, up to ₹5L | ₹60,000, up to ₹12L |
| 80C, 80D, HRA, home loan interest | Allowed | Not allowed |
A 4% health and education cess applies to the tax that survives the rebate, under both regimes. The deductions field is greyed out under the new regime because there is nothing to put in it.
Three words people mix up#
A deduction reduces the income you are taxed on. A rebate reduces the tax itself, after it has been calculated. Cess is 4% charged on whatever tax survives the rebate. The order matters: a rebate that wipes out your tax also wipes out the cess, which is why the jump either side of ₹12 lakh is so abrupt.
The band above ₹12 lakh where a rupee costs 1.04 rupees#
A salaried person on ₹12,75,000 pays nothing: the standard deduction leaves taxable income of exactly ₹12,00,000 and the rebate clears the slab tax. One rupee more and the rebate vanishes entirely, exposing ₹63,750 of tax on ₹12,25,000.
Parliament built a ramp for that cliff. Where total income crosses ₹12,00,000, marginal relief caps the tax at the amount by which income exceeds the threshold — and then the 4% cess is applied to the relieved figure.
| Taxable income | Slab tax | After marginal relief | Plus 4% cess |
|---|---|---|---|
| ₹12,00,000 | ₹60,000 | Nil (full rebate) | Nil |
| ₹12,10,000 | ₹61,500 | ₹10,000 | ₹10,400 |
| ₹12,25,000 | ₹63,750 | ₹25,000 | ₹26,000 |
| ₹12,50,000 | ₹67,500 | ₹50,000 | ₹52,000 |
| ₹12,75,000 | ₹71,250 | Relief ends | ₹74,100 |
Inside that band your marginal rate is effectively 100%, plus four paise on the rupee. The calculator applies the relief, so you can walk the income field through the band and watch it work. Our longer piece on what the ₹12 lakh threshold actually costs works through the break-even deduction line in full.
Which regime, in one paragraph#
The old regime only wins if your deductions are large enough to overcome both the lower nil band and the higher rates. At a ₹12 lakh salary it cannot win at any realistic level of deductions. The break-even deduction line dips to roughly ₹5.44 lakh at a ₹15 lakh salary and climbs towards ₹8 lakh above ₹25 lakh. Enter your real deductions under the old regime, then switch the dropdown to the new one and compare the total tax.
What this does not include#
Surcharge. Above ₹50 lakh of total income a surcharge applies — 10%, rising to 15% above ₹1 crore and 25% above ₹2 crore — along with its own marginal relief. None of that is modelled here, so treat results above ₹50 lakh as the floor rather than the answer.
Capital gains. Equity and property gains are taxed at their own rates, outside the slabs. Enter salary and other slab-rate income only.
Section 80CCD(2). Your employer's NPS contribution reduces taxable income under both regimes, up to 14% of salary in the new one. If you have it, subtract it from the income you enter.
Age. The higher basic exemption limits for senior and super-senior citizens under the old regime are not applied.
Questions#
Can I switch regimes every year?#
A salaried person with no business income can choose at the time of filing, every year. Anyone with business or professional income gets one exit from the new regime and one return to it, via Form 10-IEA, and after that the choice is locked.
Is the new regime the default?#
Yes. Since FY 2023-24 the new regime applies unless you actively opt out, which is a change from the position most tax advice was written under.
What counts towards deductions in the old regime?#
The common ones are 80C up to ₹1,50,000 (EPF, PPF, ELSS, life premiums, principal on a home loan), 80CCD(1B) up to ₹50,000 for NPS, 80D for health insurance premiums, HRA exemption if you pay rent, and up to ₹2,00,000 of interest on a self-occupied home loan. Enter the total of what you can actually claim, not the ceilings.