Income Tax Calculator: FY 2026-27 / AY 2027-28
Last verified: 24 Sept 2026Statutory source: Income Tax Department (CBDT) · Succeeded legacy Income-tax Act 1961.
Total annual earnings before standard deduction or exemptions
EPF, PPF, ELSS, Life Insurance, Home Loan Principal (Max ₹1.5L)
Medical insurance premiums for self, family, and parents (Max ₹1L)
Eligible Chapter VI-A deductions and exemptions (Old Regime only)
Input Error
Results
Computations include Section 87A rebate, marginal relief, and 4% Health & Education Cess for FY 2025-26 & FY 2026-27 (AY 2026-27 & 2027-28).
Quick Answer / Summary
For a gross salary of ₹15.00 Lakh, the New Tax Regime is more beneficial, resulting in a tax of ₹97,500 compared to ₹1,87,200 under the Old Regime (with ₹2.75L deductions), saving you ₹89,700 annually.
New vs Old Tax Regime Slabs (FY 2025-26 & FY 2026-27)
| New Tax Regime Slabs (FY 2025-26 & 2026-27) | Tax Rate | Old Tax Regime Slabs | Tax Rate |
|---|---|---|---|
| Up to ₹4,00,000 | Nil | Up to ₹2,50,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% | ₹2,50,001 to ₹5,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% | ₹5,00,001 to ₹10,00,000 | 20% |
| ₹12,00,001 to ₹16,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹16,00,001 to ₹20,00,000 | 20% | — | — |
| ₹20,00,001 to ₹24,00,000 | 25% | — | — |
| Above ₹24,00,000 | 30% | — | — |
Key statutory highlights (FY 2025-26 & FY 2026-27)
₹75,000 Standard Deduction
Salaried individuals under the New Regime receive an automatic ₹75,000 deduction without needing to submit bills or investment receipts.
Zero Tax Up to ₹12.75 Lakh
Under Section 87A, taxable income up to ₹12 Lakh gets 100% tax rebate. With the ₹75,000 standard deduction, salaried gross income up to ₹12.75L pays zero tax.
Section 87A Marginal Relief
No tax cliff: if your taxable income slightly exceeds ₹12 Lakh, marginal relief caps your tax liability to the exact excess income earned over ₹12 Lakh.
Frequently asked questions
What are the current New Tax Regime slabs for FY 2025-26 and FY 2026-27?
How does the Section 87A tax rebate work in the New Tax Regime?
Can I claim deductions like 80C, 80D, and HRA in the New Tax Regime?
When is the Old Tax Regime still better than the New Regime?
Is the 4% Health and Education Cess applicable to both tax regimes?
Can salaried individuals switch between Old and New Tax Regimes every year?
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Regulatory baseline, assumptions & legal safety
Operational boundaries and statutory provenance governing this calculation model.
Key Operational Assumptions
- Governed by the newly enacted Income-tax Act, 2025 taking effect 1 April 2026 for FY 2026-27 / AY 2027-28.
- Adopts the streamlined 'Tax Year' (TY) framework replacing Assessment Year terminology.
- Standard deduction of ₹75,000 for salaried employees and rebate up to ₹12,00,000 under Section 87A (zero tax up to ₹12.75 Lakh gross).
- 4% Health and Education Cess.
Authoritative Source & Regulatory Baseline
- Authoritative Source
- Income-tax Act, 2025 Statutory Framework(Income Tax Department (CBDT))
- Governing Framework
- Income-tax Act, 2025
- Applicable Period
- TY 2026-27
- Jurisdiction & Verification
- Republic of India • Verified 2026-09-24
Statutory context: Governed by the Income-tax Act, 2025 (in force 1 April 2026) for FY 2026-27 (AY 2027-28). Standard deduction of ₹75,000 for salaried employees and Section 87A rebate applies up to taxable income of ₹12,00,000 (zero tax up to ₹12.75 Lakh gross).
Model Scope & Specific Limitations
This calculator does not model the following scenarios or provisions:
- Applies to FY 2026-27 / AY 2027-28 (TY 2026-27) onward under the statutory framework.
- Surcharge on taxable income exceeding ₹50 Lakh (ranging from 10% to 25%) is not modeled.
- Excludes complex capital gains schedules, specific business exemptions, and presumptive schemes.
- Official Income-tax Rules should be referenced for finalized reporting formats.
Educational & Legal Disclaimer
This calculator uses the rules and published rates by Income Tax Department (CBDT) for TY 2026-27. Estimated result based on the inputs and assumptions provided.
This calculator uses the rules/data published by Income Tax Department (CBDT) for FY 2026-27 / AY 2027-28 (TY 2026-27). Surcharge on income above ₹50 Lakh is not modeled. Estimated result based on the inputs and assumptions provided. Educational tool only; not legal, tax, or filing advice.
New Regime Tax
₹97,500