Compare an ordinary salary-income estimate under the old and new tax regimes for FY 2026-27. The calculator applies the salaried standard deduction, normal slab rates, Section 87A rebate, new-regime marginal relief near Rs. 12 lakh, and 4% health and education cess.
What this income tax calculator shows
- Taxable ordinary income under each regime.
- Estimated annual tax under the old regime.
- Estimated annual tax under the new regime.
- The lower of the two estimates.
The result is a planning comparison, not an income-tax return computation. Use it only when your income stays within the stated scope.
FY 2026-27 calculation method
For salary, the calculator first subtracts the standard deduction: up to Rs. 50,000 under the old regime and up to Rs. 75,000 under the new regime. It then subtracts the regime-specific deductions you enter.
The new-regime slabs used are nil up to Rs. 4 lakh, then 5%, 10%, 15%, 20%, 25%, and 30% across the notified Rs. 4 lakh bands. A resident individual with eligible ordinary taxable income up to Rs. 12 lakh can receive a Section 87A rebate of up to Rs. 60,000. Marginal relief limits tax just above Rs. 12 lakh where the slab tax would otherwise exceed the extra income.
The old-regime calculation uses the normal slabs for an individual below 60 and the Section 87A rebate where eligible. Both estimates add 4% cess after rebate or marginal relief.
These rules are based on the Income Tax Department salaried-benefits page and the official Budget slab announcement, checked on 24 July 2026.
Important exclusions
Do not rely on this estimate if you have taxable income above Rs. 50 lakh, capital gains, lottery or gaming winnings, crypto income, foreign income, agricultural-income rate integration, alternate minimum tax, arrears relief, or other special-rate income. Surcharge, marginal relief on surcharge, advance-tax interest, TDS credits, and filing adjustments are not included.
HRA, home-loan interest, 80C, 80D, and similar old-regime items should be included only when you are legally eligible and have the required evidence. Use the HRA exemption calculator before adding an HRA amount.
Common questions
Does salary up to Rs. 12.75 lakh always mean zero tax?
Only in the common new-regime salary case where the Rs. 75,000 standard deduction reduces ordinary taxable income to Rs. 12 lakh and the Section 87A conditions are met. Special-rate income can still create tax.
Does this calculator file my return?
No. It does not select an ITR form, import AIS or Form 26AS, claim TDS, or submit a return.
Which regime should I select?
Compare both estimates, then verify every deduction, exemption, special-rate item, and deadline that applies to you. A lower calculator number is not enough if the inputs are not legally available.
More calculators
Use the take-home salary calculator to convert salary components into estimated in-hand pay, the HRA exemption calculator for Rule 2A, or the salary budget calculator for monthly cash flow.
