Income Tax Calculator FY 2026-27 — New vs Old Regime, Side by Side
Budget 2026 left the slabs unchanged, so FY 2026-27 (AY 2027-28) keeps the structure introduced in 2025: under the new regime, the §87A rebate of up to ₹60,000 means zero tax on taxable income up to ₹12 lakh (₹12.75 lakh of salary, after the ₹75,000 standard deduction). The old regime still wins for people with large deductions. Enter your numbers and see both regimes computed side by side, with the better one highlighted.
📊 Compare Both Regimes
Includes 4% health & education cess and surcharge where applicable. §87A rebate and marginal relief applied automatically. Assumes salaried standard deduction (₹75,000 new / ₹50,000 old).
FY 2026-27 Tax Slabs (Unchanged From FY 2025-26)
| New regime (default) | Rate | Old regime (optional) | Rate |
|---|---|---|---|
| Up to ₹4,00,000 | 0% | Up to ₹2,50,000 | 0% |
| ₹4L – ₹8L | 5% | ₹2.5L – ₹5L | 5% |
| ₹8L – ₹12L | 10% | ₹5L – ₹10L | 20% |
| ₹12L – ₹16L | 15% | Above ₹10L | 30% |
| ₹16L – ₹20L | 20% | Plus deductions: 80C (₹1.5L), 80D, HRA, home-loan interest (₹2L), NPS, LTA… | |
| ₹20L – ₹24L | 25% | ||
| Above ₹24L | 30% | ||
Add 4% health & education cess to the computed tax in both regimes. Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25% — the new regime's cap; the old regime's top surcharge is 37% above ₹5 crore).
Why "Zero Tax up to ₹12 Lakh" — and Its Catch
The new regime's §87A rebate wipes out up to ₹60,000 of tax when your taxable income is ₹12 lakh or less. With the ₹75,000 standard deduction, a salary of ₹12.75 lakh produces exactly ₹12 lakh taxable — so tax is zero. Two catches:
- The cliff is softened by marginal relief. At ₹12.1 lakh taxable income, slab tax is ₹61,500 — but marginal relief caps it at ₹10,000 (the amount above ₹12L). The full slab tax applies only once income is high enough that relief stops helping (around ₹12.75L taxable).
- The rebate doesn't cover special-rate income such as short-term equity gains (20%) or long-term capital gains — you pay tax on those even below ₹12 lakh.
New vs Old: The Break-Even Rule of Thumb
The old regime only wins if your total deductions (80C + 80D + HRA exemption + home-loan interest + NPS…) are large relative to income. Quick reference for salaried taxpayers:
| Gross salary | Old regime wins if deductions exceed ≈ |
|---|---|
| ₹10 lakh | Old regime can't win — new regime tax is already ₹0 |
| ₹12.75 lakh | Old regime can't win — new regime tax is ₹0 |
| ₹16 lakh | ≈ ₹5.7 lakh of deductions |
| ₹20 lakh | ≈ ₹7.1 lakh of deductions |
| ₹30 lakh | ≈ ₹8 lakh of deductions |
Few people clear those bars without substantial HRA plus a home loan. That's why the new regime is now the default — and the better choice for most salaried taxpayers. Run your own numbers above rather than assuming, though: a Mumbai renter with ₹3L HRA exemption, ₹1.5L of 80C and ₹2L home-loan interest can still beat the new regime.