# Income Tax Calculator India

> Under the new regime for FY 2026-27 (AY 2027-28), income up to ₹12 lakh is tax-free after the Section 87A rebate, so a salary of up to ₹12.75 lakh pays no tax after the ₹75,000 standard deduction. On ₹15 lakh, tax is ₹97,500 under the new regime and ₹2,02,800 under the old with ₹1.75 lakh of deductions.

- Interactive calculator: https://calculatorswithsteps.com/income-tax-calculator-india
- Category: India Finance Calculators
- Last updated: 2026-11-10
- Publisher: Calculators With Steps (calculatorswithsteps.com)

## How to use the income tax calculator

1. **Age** – choose below 60, 60 to 79, or 80 and above. Age changes only the old regime's tax-free limit.
2. **Gross salary or pension** – the yearly total before deductions, as shown in your Form 16 or payslips. The calculator deducts the standard deduction (₹75,000 new regime, ₹50,000 old regime) automatically.
3. **Other income** – savings and FD interest, rental income after the 30% standard deduction, freelance or business profit.
4. **Old-regime deductions** – your HRA exemption (work it out with the [HRA calculator](https://calculatorswithsteps.com/hra-calculator)), 80C, 80D, home loan interest and NPS. Each is capped at its legal limit.
5. **Employer NPS** – tick the box if your employer contributes to NPS. This deduction, under Section 80CCD(2), is allowed in both regimes, up to 14% of basic plus DA in the new regime (10% for private employers in the old regime).

The result shows the tax under each regime, which one is lower and by how much, a side-by-side breakdown and a slab-wise table for each regime. It also gives your **break-even deductions**, the amount of old-regime deductions at which both regimes cost the same, and a table of tax at twelve common salaries from ₹5 lakh to ₹50 lakh.

## FY 2026-27 income tax slabs

The Union Budget 2026 left the rates unchanged, so FY 2026-27 uses the same slabs as FY 2025-26. From 1 April 2026 the Income-tax Act, 2025 replaces the 1961 Act and calls the year "tax year 2026-27". The sections are renumbered (the 87A rebate is now Section 156 and the new regime is Section 202), but the amounts are the same.

| New regime (all ages) | Rate |
| --- | --- |
| Up to ₹4 lakh | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |

| Old regime (below 60) | Rate |
| --- | --- |
| Up to ₹2.5 lakh | Nil |
| ₹2.5–5 lakh | 5% |
| ₹5–10 lakh | 20% |
| Above ₹10 lakh | 30% |

Under the old regime the tax-free limit is ₹3 lakh for those aged 60 to 79 and ₹5 lakh for those 80 and above (who skip the 5% slab).

## How income tax is calculated

1. **Gross total income** = salary + other income.
2. **Taxable income** = gross income − standard deduction − allowed deductions (only employer NPS in the new regime).
3. **Tax on slabs**, applying each rate only to the income inside that slab.
4. **Rebate under Section 87A**: up to ₹60,000 if taxable income is ₹12 lakh or less (new regime), or up to ₹12,500 if it is ₹5 lakh or less (old regime).
5. **Marginal relief** just above ₹12 lakh in the new regime: tax cannot exceed the income above ₹12 lakh.
6. **Surcharge** above ₹50 lakh, with marginal relief at each threshold.
7. **Health and education cess** of 4% on tax plus surcharge.

## Worked examples (FY 2026-27, new regime)

| Income | Taxable income | Tax payable |
| --- | --- | --- |
| ₹12 lakh (not salary) | ₹12,00,000 | Nil (rebate ₹60,000) |
| ₹12.75 lakh salary | ₹12,00,000 | Nil |
| ₹12.85 lakh salary | ₹12,10,000 | ₹10,400 (marginal relief) |
| ₹15 lakh salary | ₹14,25,000 | ₹97,500 |
| ₹25 lakh salary | ₹24,25,000 | ₹3,19,800 |
| ₹60 lakh salary | ₹59,25,000 | ₹15,52,980 (10% surcharge) |

Take the ₹15 lakh salary. Taxable income is ₹15,00,000 − ₹75,000 = ₹14,25,000. Tax is 5% of ₹4 lakh (₹20,000) + 10% of ₹4 lakh (₹40,000) + 15% of ₹2.25 lakh (₹33,750) = ₹93,750. Cess of ₹3,750 brings the total to **₹97,500**, about ₹8,125 a month in TDS.

Surcharge marginal relief matters just above ₹50 lakh. On ₹51 lakh of taxable income, tax is ₹11,10,000 and a 10% surcharge would add ₹1,11,000, but the total cannot exceed the ₹10,80,000 due at ₹50 lakh plus the extra ₹1 lakh of income. Tax plus surcharge is capped at ₹11,80,000, and with cess the bill is ₹12,27,200.

## Old vs new regime: which should you choose?

The new regime is the default and is cheaper for most taxpayers. On a ₹10 lakh salary it costs nothing, against ₹34,840 under the old regime even after ₹1.5 lakh of 80C, ₹25,000 of 80D, ₹50,000 of NPS and ₹1.2 lakh of HRA exemption. The old regime pays off only when deductions are large. A ₹15 lakh earner who claims HRA of ₹2 lakh, full 80C, ₹25,000 of 80D, ₹2 lakh of home loan interest and ₹50,000 of NPS pays ₹80,600 under the old regime against ₹97,500 under the new.

Enter your real figures rather than guessing. At ₹25 lakh, even with ₹7.5 lakh of deductions, the old regime still costs ₹15,600 more.

## Break-even deductions: when the old regime is cheaper

The break-even is the total of old-regime deductions, on top of the ₹50,000 standard deduction, at which both regimes charge the same tax. Count everything the old regime allows and the new one does not: HRA exemption, 80C, 80D, home loan interest under Section 24(b), your own NPS under 80CCD(1B), and smaller items such as 80E and 80G. If your total is above the break-even, choose the old regime. If it is below, the new regime costs less.

The calculator finds the figure by bisection. Old-regime tax only falls as deductions rise, so it keeps halving the range of possible deductions until it finds the smallest whole-rupee amount at which old-regime tax is no higher than new-regime tax for your income and age.

**Worked example: ₹15 lakh salary, age below 60**

1. New regime: taxable income is ₹14,25,000 and tax is ₹97,500 including cess.
2. Old-regime tax must therefore fall to ₹97,500, which is ₹93,750 before the 4% cess.
3. On the old slabs, ₹93,750 of tax means taxable income of ₹9,06,250: ₹12,500 on the 5% slab plus 20% of the ₹4,06,250 above ₹5 lakh.
4. Before deductions, old-regime income is ₹15,00,000 − ₹50,000 = ₹14,50,000. The deductions needed are ₹14,50,000 − ₹9,06,250 = **₹5,43,750**.

Full 80C (₹1.5 lakh) and ₹25,000 of 80D get you to ₹1,75,000, leaving ₹3,68,750 to come from HRA, home loan interest or NPS. Without a home loan or a large rent bill, few salaried people reach that.

| Gross salary | New regime tax | Break-even deductions |
| --- | --- | --- |
| ₹12.75 lakh or less | Nil | Not possible |
| ₹13 lakh | ₹26,000 | ₹6,87,500 |
| ₹15 lakh | ₹97,500 | ₹5,43,750 |
| ₹18 lakh | ₹1,50,800 | ₹6,41,667 |
| ₹20 lakh | ₹1,92,400 | ₹7,08,334 |
| ₹24.75 lakh to ₹50.75 lakh | ₹3,12,000 to ₹11,23,200 | ₹8,00,000 |

Just above ₹12.75 lakh the break-even is high because marginal relief keeps new-regime tax small. From ₹24.75 lakh both regimes tax each extra rupee at 30%, so the gap between them stops growing and the break-even stays at ₹8 lakh until surcharge starts. For people aged 60 to 79 the higher ₹3 lakh exemption lowers it a little, to ₹5,31,250 at ₹15 lakh.

## Tips to reduce tax legally

- **Ask your employer about NPS.** Employer NPS contributions up to 14% of basic pay are deductible even in the new regime.
- **Declare your regime to your employer early** so the right TDS is deducted each month.
- **Count interest income.** FD and savings interest is taxable and often forgotten. The [FD calculator](https://calculatorswithsteps.com/fd-calculator) shows how much you earn each year.
- **Use tax-free options** such as [PPF](https://calculatorswithsteps.com/ppf-calculator), whose interest is exempt in both regimes.

This calculator covers resident individuals with salary and other regular income. It does not handle capital gains at special rates, which are taxed separately and are not eligible for the new-regime rebate.

## Frequently asked questions

### What are the income tax slabs for FY 2026-27?

Budget 2026 did not change the slabs. Under the new regime: up to ₹4 lakh nil, ₹4–8 lakh 5%, ₹8–12 lakh 10%, ₹12–16 lakh 15%, ₹16–20 lakh 20%, ₹20–24 lakh 25% and above ₹24 lakh 30%. Under the old regime: up to ₹2.5 lakh nil, ₹2.5–5 lakh 5%, ₹5–10 lakh 20% and above ₹10 lakh 30%, with higher exemption limits for those aged 60 and over.

### Is income up to ₹12 lakh tax-free?

Yes, under the new regime. Tax on ₹12 lakh of taxable income is ₹60,000, and the Section 87A rebate of up to ₹60,000 cancels it. Salaried people also get the ₹75,000 standard deduction, so a salary of ₹12.75 lakh pays no tax.

### How much tax do I pay on ₹12.1 lakh under the new regime?

₹10,400. Without relief the slab tax would be ₹61,500, but marginal relief caps the tax at the income above ₹12 lakh, which is ₹10,000, plus 4% cess. Marginal relief stops mattering at about ₹12.7 lakh of taxable income.

### How much tax will I pay on a ₹15 lakh salary?

Under the new regime, ₹97,500: taxable income is ₹14.25 lakh after the ₹75,000 standard deduction, and tax is ₹93,750 plus 4% cess. Under the old regime with only ₹1.5 lakh of 80C and ₹25,000 of 80D, it is ₹2,02,800.

### Which is better, the old or the new tax regime?

For most people the new regime, because its slabs are lower and wider. The old regime is cheaper only when your deductions beyond the standard deduction exceed the break-even: ₹5,43,750 on a ₹15 lakh salary, ₹7,08,334 on ₹20 lakh and ₹8 lakh on any salary from ₹24.75 lakh to ₹50.75 lakh. At ₹12.75 lakh or less the new regime's tax is nil, so the old regime can never win.

### Which regime is better for a ₹15 lakh salary?

The new regime, unless your old-regime deductions beyond the ₹50,000 standard deduction exceed ₹5,43,750. New-regime tax is ₹97,500, while the old regime with only ₹1.5 lakh of 80C and ₹25,000 of 80D costs ₹2,02,800. You would need another ₹3,68,750 from HRA, home loan interest or NPS just to break even.

### What is the tax on a ₹25 lakh salary?

Under the new regime, taxable income is ₹24.25 lakh and tax is ₹3,19,800 including cess. Under the old regime with ₹1.5 lakh of 80C and ₹25,000 of 80D, tax is ₹5,14,800, so the old regime breaks even only when your deductions, besides the standard deduction, add up to ₹8 lakh.

### When does surcharge apply?

Surcharge is added when total income exceeds ₹50 lakh: 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. The old regime has a 37% rate above ₹5 crore; the new regime is capped at 25%. Marginal relief ensures crossing a threshold never costs more than the extra income.

### Can I switch between the old and new regime every year?

Salaried people with no business income can choose either regime every year when they file their return. People with business or professional income can opt out of the new regime only once, and can switch back only once.

## Sources

- [Income Tax Department e-filing portal – Tax slabs for salaried individuals](https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1)
- [Income Tax Department e-filing portal – Senior and super senior citizens](https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-2)
- [PIB – Summary of Union Budget 2026-27](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2026/feb/doc202621776101.pdf)

> Disclaimer: results are estimates for information and education, not tax advice. Confirm important decisions with a qualified professional.