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Income Tax Calculator 2026-27: Old vs New Regime
Enter your salary and other income to see your tax under both regimes for tax year 2026-27, and which one saves you more.
New regime tax slabs for 2026-27
Income up to ₹4 lakh is taxed at nil, ₹4 to 8 lakh at 5%, ₹8 to 12 lakh at 10%, ₹12 to 16 lakh at 15%, ₹16 to 20 lakh at 20%, ₹20 to 24 lakh at 25% and above ₹24 lakh at 30%. A rebate makes income up to ₹12 lakh tax-free, and marginal relief caps the tax just above ₹12 lakh at the amount by which your income exceeds ₹12 lakh. Salaried taxpayers get a ₹75,000 standard deduction, so a salary of ₹12.75 lakh pays no tax.
Old regime tax slabs
Income up to ₹2.5 lakh is nil (₹3 lakh for ages 60 to 79 and ₹5 lakh for 80 and above), ₹2.5 to 5 lakh is 5%, ₹5 to 10 lakh is 20% and above ₹10 lakh is 30%. Income up to ₹5 lakh is tax-free after rebate. The old regime allows HRA, the ₹1.5 lakh investment deduction, health insurance premium, home loan interest and other deductions, with a ₹50,000 standard deduction.
Which regime should you choose?
The new regime is better for most people whose deductions are small. The old regime usually wins only when your deductions and exemptions are large, for example HRA in a big city plus the full ₹1.5 lakh investment deduction and home loan interest. Salaried employees can choose each year when filing the return. Taxpayers with business income can switch between the regimes only once.
Frequently asked questions
Is income up to ₹12 lakh tax-free in 2026-27?
Yes, under the new regime. The rebate covers the full tax on taxable income up to ₹12 lakh. It does not apply to capital gains taxed at special rates, such as listed shares and equity mutual funds.
Is surcharge charged on high incomes?
Yes. Surcharge is 10% of tax above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. The old regime has a 37% rate above ₹5 crore, while the new regime caps surcharge at 25%. A 4% health and education cess applies on top.
Can I claim HRA in the new regime?
No. HRA, the investment deduction, health insurance premium and home loan interest on a self-occupied house are allowed only in the old regime. The employer’s contribution to NPS is deductible in both regimes.
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