Income Tax Calculator India FY 2026-27 — Old vs New Regime
Real-World Examples — 2026
₹12 lakh annual income — old vs new regime (FY 2026-27)
Under the new regime, a ₹12 lakh income qualifies for the full Section 87A rebate — zero tax is payable. Under the old regime with ₹1.5 lakh in 80C deductions, taxable income is ₹10 lakhs and tax payable is approximately ₹1,12,500 plus cess. The new regime saves ₹1.17 lakhs at this income level with no deductions required.
₹20 lakh income — which regime saves more?
At ₹20 lakhs, the decision depends on deductions. Old regime with maximum 80C (₹1.5L), 80D (₹25K), HRA (₹2L), home loan interest (₹2L), and NPS (₹50K): total deductions ₹6.25 lakhs, taxable income ₹13.75 lakhs, tax ₹2.78 lakhs. New regime: standard deduction ₹75K only, taxable income ₹19.25 lakhs, tax ₹2.39 lakhs. New regime wins here.
Break-even deduction point — old vs new regime
The new regime is generally better when total deductions are below ₹3.75 lakhs at ₹15 lakh income. If your 80C, HRA, home loan interest, and 80D total more than ₹3.75–4 lakhs, the old regime may save more tax. Use this calculator to check your specific situation.
| Income | New Regime Tax | Old Regime (with ₹4L deductions) |
|---|---|---|
| ₹8 lakh | ₹0 (rebate) | ₹25,000 |
| ₹12 lakh | ₹0 (rebate) | ₹1,12,500 |
| ₹15 lakh | ₹1,50,000 | ₹1,95,000 |
| ₹20 lakh | ₹2,96,400 | ₹3,51,800 |
| ₹30 lakh | ₹6,20,400 | ₹6,51,000 |
How to Use These Results
Which income tax regime is better in India in 2026?
The new regime is the default from FY 2023-24 and is now better for most salaried employees. If your total deductions (80C + HRA + home loan interest + 80D + NPS) exceed ₹3.75 lakhs at ₹15 lakh income, the old regime may save more tax. Use the calculator above to find your personal break-even point.
What is the Section 87A rebate under the new regime?
Under the new tax regime, individuals with annual income up to ₹12 lakhs (after standard deduction) are entitled to a full rebate under Section 87A — effectively paying zero income tax. This ₹12 lakh zero-tax limit (plus ₹75,000 standard deduction = ₹12.75 lakh gross salary) makes the new regime very attractive for salaries below ₹12 lakh.
Can you switch between old and new tax regimes each year?
Salaried individuals can switch between old and new tax regimes each financial year when filing their ITR. Self-employed individuals can switch only once — from old to new — and cannot switch back. Choosing the regime that saves more tax each year (with this calculator) is a legitimate and recommended strategy.
Income Tax Slabs FY 2026-27 (New Regime)
| Income Range | Tax Rate |
|---|---|
| Up to ₹4L | 0% |
| ₹4L – ₹8L | 5% |
| ₹8L – ₹12L | 10% |
| ₹12L – ₹16L | 15% |
| ₹16L – ₹20L | 20% |
| ₹20L – ₹24L | 25% |
| ₹24L – Above | 30% |
Rebate u/s 87A: Full rebate u/s 87A — zero tax for income up to ₹12 lakh. Standard deduction: ₹75,000.
Frequently Asked Questions
What are the income tax slabs for FY 2026-27 (new regime)?
New regime tax slabs for FY 2026-27: 0–₹4L: 0%; ₹4L–₹8L: 5%; ₹8L–₹12L: 10%; ₹12L–₹16L: 15%; ₹16L–₹20L: 20%; ₹20L–₹24L: 25%; above ₹24L: 30%. Additionally, income up to ₹12 lakh is fully exempt via the Section 87A rebate. A standard deduction of ₹75,000 applies.
What is the income tax limit for 2026-27 in India?
Under the new tax regime for FY 2026-27, income up to ₹12 lakh is effectively tax-free due to the Section 87A rebate. For salaried individuals, this extends to ₹12.75 lakh (including the ₹75,000 standard deduction) with zero tax payable.
How much income tax do I pay on ₹10 lakh income?
Under the new tax regime for FY 2026-27, ₹10 lakh income is below the ₹12 lakh rebate limit — tax payable is zero. Under the old regime with no deductions: taxable income ₹10L minus ₹50K standard deduction = ₹9.5L, tax = ₹1,12,500 + cess = ₹1,17,000. The new regime saves more here.
What deductions are allowed in the old tax regime?
The old tax regime allows: Section 80C (up to ₹1.5 lakh — EPF, PPF, ELSS, LIC, tuition fees); Section 80D (health insurance ₹25,000 + parents ₹25,000); HRA exemption; Section 24b home loan interest (up to ₹2 lakh); NPS 80CCD(1B) extra ₹50,000; LTA; Section 80TTA savings interest (₹10,000).
Is standard deduction available in the new tax regime?
Yes. A standard deduction of ₹75,000 is available to salaried employees under the new tax regime from FY 2024-25 onwards. This was increased from ₹50,000. No other deductions (80C, HRA, etc.) are applicable in the new regime.
What is the surcharge on income tax in India?
Surcharge applies on income above ₹50 lakh: ₹50L–₹1Cr: 10% surcharge on tax; ₹1Cr–₹2Cr: 15%; ₹2Cr–₹5Cr: 25%; above ₹5Cr: 37%. A health and education cess of 4% applies on (tax + surcharge) for all taxpayers.