Last reviewed: — Footer now refers to Tax year 2026-27 under the Income-tax Act, 2025.
Income Tax Calculator: FY 2026-27 / AY 2027-28
Statutory source: Income Tax Department (CBDT) · Succeeded legacy Income-tax Act 1961.
Old vs New Regime: which suits you? (optional — skip if you just want a number)
Choose New Regime if…
- • Your gross salary is ≤ ₹12.75 Lakh — you pay zero tax, no paperwork needed
- • You don't have big investments (PPF, ELSS, LIC) or home loan interest to claim
- • You're a first-time taxpayer or dislike saving receipts all year
- • You're a freelancer / consultant without an employer deducting EPF
Stick with Old Regime if…
- • You max out 80C (₹1.5L) and pay health insurance premiums and a home loan
- • Your total deductions exceed ~₹3.75–₹4 Lakh combined
- • You live on rent in a metro and claim a large HRA exemption
The calculator below computes both regimes automatically — just enter your income and deductions and the Recommended Regime result will tell you which saves more.
Annual earnings before any deductions or exemptions
Investments that reduce taxable income (Old Regime only)
Health insurance premiums paid this year (Old Regime only)
HRA, home loan interest, NPS & other exemptions (Old Regime only)
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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).
For information only. Not tax advice. Verify with a Chartered Accountant before filing.
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)
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).
- Surcharge on taxable income above ₹50 Lakh (10%), ₹1 Crore (15%), ₹2 Crore (25%) and ₹5 Crore (37% Old Regime; capped at 25% New Regime), with marginal relief at each threshold.
- 4% Health and Education Cess on income tax plus surcharge.
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.
- 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). Estimated result based on the inputs and assumptions provided. Educational tool only; not legal, tax, or filing advice.
New Regime Tax
₹97,500