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. For a quick yes/no answer on your exact figures, use our new vs old regime tool.
Income Tax on 10, 15 & 25 Lakh Salary (Worked Examples)
These are the salary figures people search for most. Each example below is the new-regime tax on gross salary, after the ₹75,000 standard deduction and 4% cess, for FY 2026-27. To see how the same salary translates into monthly take-home after PF, start with our in-hand salary calculator.
| Gross salary | Taxable income | New regime tax (incl. cess) |
|---|---|---|
| ₹10 lakh | ₹9,25,000 | ₹0 — fully covered by the §87A rebate |
| ₹15 lakh | ₹14,25,000 | ≈ ₹97,500 |
| ₹25 lakh | ₹24,25,000 | ≈ ₹3,19,800 |
Income tax on 10 lakh salary
A ₹10 lakh salary attracts zero income tax under the new regime in FY 2026-27. After the ₹75,000 standard deduction, taxable income is ₹9.25 lakh — below the ₹12 lakh ceiling — so the ₹60,000 §87A rebate wipes out the entire slab tax. The old regime would tax this salary unless you have large 80C and HRA deductions.
Income tax on 15 lakh salary
At ₹15 lakh, the rebate no longer applies. New-regime tax works out to about ₹97,500 including cess. If you pay rent and choose the old regime, your HRA exemption plus 80C investments can lower this — but for most people the new regime still wins at this income.
Income tax on 25 lakh salary
A ₹25 lakh salary lands deep in the higher slabs: new-regime tax is roughly ₹3,19,800 including cess (no surcharge yet — that starts above ₹50 lakh taxable). At this level the old regime rarely wins unless you have a home loan plus maximum HRA and 80C/80D deductions stacked together.