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AY 2026-27
Income Tax Calculator India (AY 2026-27) - New vs Old Regime
Free online income tax calculator to estimate salary tax for Assessment Year 2026-27. Compare new tax regime vs old tax regime, apply standard deduction, and understand how slab tax, rebate u/s 87A, surcharge and 4% health and education cess affect your final tax.
Interactive Calculator
Calculate Your Income Tax
Enter your annual gross income, select tax regime and age group to estimate your tax for AY 2026-27.
Tax Result
Enter your income
Enter your annual gross income above and click "Calculate Tax" to see your estimated tax liability.
Step-by-Step Guide
How to calculate income tax in India for AY 2026-27
Income tax is calculated on taxable income, not directly on gross salary. For salaried individuals, the calculation usually starts with annual gross income, subtracts the standard deduction and eligible deductions, applies slab rates, then adds cess and surcharge where applicable.
Subtract standard deduction
Use ₹75,000 under the new regime or ₹50,000 under the old regime if salary or pension standard deduction applies.
Apply deductions and exemptions
Old regime may allow deductions like 80C, 80D, HRA and home loan interest. New regime allows fewer deductions.
Apply tax slab rates
Calculate slab-wise tax based on the selected regime and age group. Senior citizen slab benefit applies only in old regime.
Check rebate u/s 87A
Rebate can reduce tax to zero when taxable income is within the specified limit for the chosen tax regime.
Add cess and surcharge
Add 4% health and education cess. Surcharge applies when taxable income exceeds ₹50 lakh.
Example Calculation
Income tax calculation example for ₹12,00,000 salary
This simplified example shows why comparing both regimes matters. Actual tax can change based on HRA, 80C, 80D, home loan interest, NPS and other eligible deductions.
New regime example
| Gross salary | ₹12,00,000 |
|---|---|
| Standard deduction | ₹75,000 |
| Taxable income | ₹11,25,000 |
| Approximate tax including cess | ₹44,100 |
Rebate u/s 87A can apply in the new regime when taxable income does not exceed ₹12,00,000.
Old regime example
| Gross salary | ₹12,00,000 |
|---|---|
| Standard deduction | ₹50,000 |
| Assumed extra deductions | ₹0 |
| Taxable income | ₹11,50,000 |
| Approximate tax including cess | ₹1,05,000 |
The old regime can become better when you have enough eligible deductions and exemptions.
Regime Comparison
New tax regime vs old tax regime: which is better?
The new regime is usually simpler because it has lower slab rates and fewer deduction calculations. The old regime may be better if you claim substantial deductions such as Section 80C investments, Section 80D health insurance, HRA exemption, NPS, education loan interest or home loan interest.
New regime may work better when
You have limited deductions, want a simpler calculation, or your taxable income falls within the new-regime rebate range.
Read the full new vs old regime guide →Old regime may work better when
You claim deductions like 80C, 80D, HRA, home loan interest, education loan interest or other Chapter VIA benefits.
Learn about Section 80C deductions →Quick Reference
Tax on Common Salaries
Estimated total tax (including cess) for different income levels under both regimes for individuals below 60 years.
New Tax Regime
| Gross Income | Taxable Income | Total Tax |
|---|---|---|
| ₹5,00,000 | ₹4,25,000 | ₹0 |
| ₹6,00,000 | ₹5,25,000 | ₹6,250 |
| ₹7,00,000 | ₹6,25,000 | ₹11,250 |
| ₹8,00,000 | ₹7,25,000 | ₹16,250 |
| ₹10,00,000 | ₹9,25,000 | ₹26,250 |
| ₹12,00,000 | ₹11,25,000 | ₹44,100 |
| ₹15,00,000 | ₹14,25,000 | ₹89,100 |
| ₹20,00,000 | ₹19,25,000 | ₹1,69,200 |
| ₹25,00,000 | ₹24,25,000 | ₹2,60,400 |
| ₹30,00,000 | ₹29,25,000 | ₹3,75,600 |
Old Tax Regime
| Gross Income | Taxable Income | Total Tax |
|---|---|---|
| ₹5,00,000 | ₹4,50,000 | ₹0 |
| ₹6,00,000 | ₹5,50,000 | ₹5,000 |
| ₹7,00,000 | ₹6,50,000 | ₹15,000 |
| ₹8,00,000 | ₹7,50,000 | ₹25,000 |
| ₹10,00,000 | ₹9,50,000 | ₹65,000 |
| ₹12,00,000 | ₹11,50,000 | ₹1,05,000 |
| ₹15,00,000 | ₹14,50,000 | ₹1,85,000 |
| ₹20,00,000 | ₹19,50,000 | ₹3,65,000 |
| ₹25,00,000 | ₹24,50,000 | ₹5,45,000 |
| ₹30,00,000 | ₹29,50,000 | ₹7,25,000 |
Tax amounts shown are indicative and include standard deduction and 4% cess. Actual tax may vary based on specific deductions claimed.
Disclaimer
This income tax calculator provides an estimate for informational purposes only. The actual tax liability may differ based on your complete income profile, specific deductions, exemptions, and other provisions. Please consult a qualified tax professional or refer to the Income Tax Act, Rules and official notifications for accurate tax calculation.
FAQs
Income tax calculator India FAQs
Answers to common questions salaried taxpayers ask before comparing tax regimes or filing ITR.
How do I calculate income tax on salary in India?
Add your annual salary and taxable income, subtract standard deduction and eligible deductions, apply the slab rates for the selected tax regime, subtract rebate if eligible, then add surcharge and 4% health and education cess.
Is the new tax regime better than the old tax regime?
It depends on income and deductions. The new regime is often better for taxpayers with few deductions. The old regime can be better when deductions such as 80C, 80D, HRA and home loan interest are significant.
Does this calculator include standard deduction?
Yes. The calculator can apply standard deduction automatically: ₹75,000 under the new regime and ₹50,000 under the old regime for eligible salary or pension income.
Does this calculator include HRA and 80C deductions?
This standalone calculator focuses on gross salary, standard deduction and slab tax. Use the detailed calculator on the homepage to compare old-regime deductions, and read the HRA and 80C guides for eligibility rules.
Why is my final tax different from Form 16 or ITR utility?
Actual tax can differ because Form 16 and ITR utilities may include special-rate income, professional tax, employer exemptions, marginal relief, TDS details, interest income, house property income or other adjustments.
Related Pages
Explore More Tax Resources
Tax Slabs AY 2026-27
Complete tax slab rates for new vs old tax regime for all age groups.
View income tax slabs AY 2026-27 →Section 80C Deductions
Learn about deductions under Section 80C, 80CCC and 80CCD(1).
Read the Section 80C deduction guide →HRA Exemption
House Rent Allowance exemption calculation and eligibility.
Learn how to calculate HRA exemption in India →New vs Old Regime
Compare tax regimes and understand which one benefits you more.
Compare new vs old tax regime for 2026 →Back to Home