When does surcharge apply?

Surcharge applies above ₹50 lakh of taxable income (10% up to ₹1 crore, higher above). Most calculators on this site omit surcharge; if your income exceeds ₹50 lakh, add it manually or consult a CA.

Do I need to pay the 4% cess separately?

No — the 4% health and education cess is added to your tax after rebate and relief. It is included in the final figure shown; you do not pay it as a separate challan.

Is income up to ₹12 lakh really tax-free?

Yes — under the new regime, after the ₹75,000 standard deduction, the tax on ₹12 lakh gross is ₹60,000, fully rebated under Section 87A. Earn ₹1 more and marginal relief caps the tax at the excess over ₹12 lakh.

Are 80C deductions allowed in the new regime?

No. Most Chapter VI-A deductions, including 80C, 80D and HRA, are not allowed under the new regime. Only the standard deduction of ₹75,000 and a few specific exemptions remain.

What is the single biggest lever in the Income Tax FY 2026-27 (New vs Old Regime)?

The biggest lever is usually gross annual income. In most cases a 10% change there moves the final figure more than any other input. Start there when you are trying to improve the outcome.

How is the Income Tax FY 2026-27 (New vs Old Regime) calculated?

It uses the FY 2026-27 slabs with standard deduction, 87A rebate, marginal relief and 4% cess. With gross annual income ₹1,200,000, 80c investments (ppf, elss, etc.) ₹150,000, 80d health insurance ₹25,000, hra exemption ₹100,000, the tool shows Tax under New Regime of ₹0. Change any input and the breakdown updates immediately, so you can see exactly which assumption moves the number most.

What is the difference between the Income Tax FY 2026-27 (New vs Old Regime) and Advance Tax Instalment Calculator?

The Income Tax FY 2026-27 (New vs Old Regime) focuses on tax computation and regime comparison; the Advance Tax Instalment Calculator is for a different but adjacent decision. Use both together — many people run the Income Tax FY 2026-27 (New vs Old Regime) first, then check Advance Tax Instalment Calculator to see the full picture.

Is the default gross annual income still correct for October 2026?

The default reflects the latest notified rate as of October 2026. Rates change — especially for government small savings, which are reset quarterly, and for bank loans linked to the repo rate. Always verify the current rate on the official source before making a decision.

Should I use the Income Tax FY 2026-27 (New vs Old Regime) before or after talking to an adviser?

Use it before — that is the point. Run the numbers, understand the range, and go into the conversation knowing what to expect. Bring the printed breakdown with you; it makes it much harder for anyone to quote you an unfair number.

How is the Income Tax FY 2026-27 (New vs Old Regime) calculated?

It uses the FY 2026-27 slabs with standard deduction, 87A rebate, marginal relief and 4% cess. With gross annual income ₹1,200,000, 80c investments (ppf, elss, etc.) ₹150,000, 80d health insurance ₹25,000, hra exemption ₹100,000, the tool shows Tax under New Regime of ₹0. Change any input and the breakdown updates immediately, so you can see exactly which assumption moves the number most. On this Income Tax FY 2026-27 (New vs Old Regime) page, try adjusting the gross annual income input — it is the quickest way to see how the final figure moves for your own numbers.

What is the single biggest lever in the Income Tax FY 2026-27 (New vs Old Regime)?

The biggest lever is usually gross annual income. In most cases a 10% change there moves the final figure more than any other input. Start there when you are trying to improve the outcome. On this Income Tax FY 2026-27 (New vs Old Regime) page, try adjusting the 80c investments (ppf, elss, etc.) input — it is the quickest way to see how the final figure moves for your own numbers.

Does the Income Tax FY 2026-27 (New vs Old Regime) store my data anywhere?

No. Everything runs in your browser. Nothing you type is sent to a server, stored in a database, or used for advertising. You can disconnect from the internet after the page loads and it still works. On this Income Tax FY 2026-27 (New vs Old Regime) page, try adjusting the 80d health insurance input — it is the quickest way to see how the final figure moves for your own numbers.

Is the default gross annual income still correct for October 2026?

The default reflects the latest notified rate as of October 2026. Rates change — especially for government small savings, which are reset quarterly, and for bank loans linked to the repo rate. Always verify the current rate on the official source before making a decision. On this Income Tax FY 2026-27 (New vs Old Regime) page, try adjusting the hra exemption input — it is the quickest way to see how the final figure moves for your own numbers.

Does the Income Tax FY 2026-27 (New vs Old Regime) account for inflation or fees?

Inflation and fees are not deducted unless this calculator explicitly includes them. The result is in nominal rupees (today's value). To see the effect of inflation, run the inflation calculator alongside it. For investment products, subtract the expense ratio from your assumed return. On this Income Tax FY 2026-27 (New vs Old Regime) page, try adjusting the home loan interest (80c/24) input — it is the quickest way to see how the final figure moves for your own numbers.

Income Tax & Salary

Income Tax Calculator FY 2026-27 (New vs Old Regime)

Side-by-side tax under New vs Old Regime for FY 2026-27 with standard deduction, rebate and cess.

Your inputs

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How this Income Tax Calculator FY 2026-27 (New vs Old Regime) works

This calculator applies the Income Tax Act, 2025 slabs effective from FY 2026-27 (AY 2027-28). The New Regime is the default; you may opt for the Old Regime (with deductions) if it lowers your tax.

New Regime slab	Rate
Up to ₹4,00,000	Nil
₹4L – ₹8L	5%
₹8L – ₹12L	10%
₹12L – ₹16L	15%
₹16L – ₹20L	20%
₹20L – ₹24L	25%
Above ₹24L	30%

Standard deduction ₹75,000; rebate u/s 87A of ₹60,000 makes income up to ₹12 lakh effectively zero-tax; 4% Health & Education Cess applies to the tax. Surcharge (income above ₹50 lakh), capital gains, and perquisites are not modelled — consult a CA for those.

Frequently asked questions

Which tax regime should I choose?

Use the calculator — it compares both. Generally, the New Regime wins if your total deductions (80C + 80D + HRA + home loan interest) are below roughly ₹3–4 lakh. Above that, the Old Regime can win.

Is income up to ₹12 lakh really zero tax?

Yes, under the New Regime for FY 2026-27: after the ₹75,000 standard deduction, tax on ₹12 lakh gross is ₹60,000, which is fully rebated u/s 87A. Earn ₹1 more and the rebate disappears entirely (marginal relief applies at the boundary).

What is an Income Tax Calculator?

An Income Tax Calculator estimates your income tax liability under both the Old and New Tax Regimes in India. It takes your gross salary, deductions, exemptions, and other income sources and applies the relevant slab rates, cess, and rebates to show your net tax payable for the financial year. With the New Tax Regime now the default option for FY 2026-27, comparing both regimes has become an essential annual exercise for every salaried individual and self-employed professional.

The calculator considers the standard deduction of ₹50,000 available under both regimes, Section 87A rebate provisions, the 4% Health and Education Cess, and the applicable surcharge for higher income brackets. By adjusting your deductions and regime choice, you can make an informed decision about which tax structure saves you more money this year.

How to Use This Income Tax Calculator

Enter your values. Adjust the sliders or type directly into the number fields. All fields use Indian Rupees (₹) and percentages where applicable. The Income Tax Calculator updates instantly as you change any value — no separate calculate button needed.
Focus on the highlighted result. The result card shown in the accent colour is the primary output of this calculation. Read the supporting tiles for context.
Enter all income sources and deductions accurately.
Toggle between Old and New regimes to see which saves you more.
See how an extra ₹50,000 in 80C investments changes your tax.
Save or print. Use the "Save / Print as PDF" button to keep a record of your calculation for your personal files or to share with your financial adviser.

Formula & Calculation Logic

Income Tax Calculator Logic: This calculator uses standard financial formulae appropriate for the calculation type. Inputs are processed in real-time using client-side JavaScript, with results displayed instantly. All calculations follow Indian regulatory conventions and financial year rules where applicable. The specific mathematical approach depends on the nature of the calculation — compound interest for growth projections, amortisation schedules for loans, statutory formulae for government schemes, and current tax slab rates for tax estimates.

All calculations on FinCal Hub run entirely in your browser using JavaScript. Your inputs are never sent to a server, and nothing you type is stored anywhere. This approach ensures your financial privacy while giving you instant results. The calculations follow Indian numbering conventions (lakhs and crores) and regulatory rules applicable for FY 2026-27 where relevant.

Where a calculator involves simplifying assumptions — such as constant returns on market-linked investments or a fixed interest rate for the full tenure of a floating-rate loan — these are clearly stated in the assumptions section below the results. Financial planning always involves uncertainty, and our calculators are designed to give you a reliable starting estimate rather than a guaranteed prediction.

Real-Life INR Examples

Example 1 — Regime comparison: A salaried individual earning ₹12 lakh per annum with ₹2 lakh in total deductions (80C + 80D + HRA) would pay approximately ₹54,600 in tax under the Old Regime versus roughly ₹46,800 under the New Regime — making the New Regime slightly better in this case. If deductions increase to ₹3 lakh, the Old Regime becomes more favourable.

Example 2 — Section 80C benefit: Someone in the 20% tax slab (plus 4% cess) who maximises the full ₹1.5 lakh Section 80C limit saves ₹31,200 in tax each year. Over a 30-year career, this recurring annual tax saving invested at 10% would itself compound to over ₹50 lakh.

Example 3 — HRA claim: An employee in Mumbai with ₹40,000 basic salary, ₹20,000 HRA, and paying ₹18,000 actual rent qualifies for an HRA exemption of approximately ₹14,000 per month (rent minus 10% of basic is the binding constraint here). This saves roughly ₹3,500 per month in tax for someone in the 20% slab.

Common Mistakes to Avoid

Waiting until the last week of March to make tax-saving investments. This leads to rushed decisions, buying unsuitable products pushed by agents earning commissions, and potentially missing the deadline entirely.
Buying expensive insurance policies purely for tax saving. Traditional endowment policies often deliver 4–6% internal returns — barely beating inflation. Separate your insurance need from your investment need: buy a pure term plan for protection and invest separately.
Forgetting to file Form 15G/15H if you are below the taxable threshold. Without these forms, banks will deduct TDS on your FD interest even though you owe no tax, forcing you to file a return just to claim a refund.
Choosing the wrong tax regime based on a friend's advice rather than your actual numbers. The break-even point depends heavily on your specific deductions. Run the numbers yourself using an income tax calculator.
Missing the ITR filing deadline. Late filing attracts fees under Section 234F up to ₹5,000, and you lose the ability to carry forward capital losses to future years.

When to Use (and When Not To)

Use the Income Tax Calculator when:

You want to estimate your tax liability for FY 2026-27 using the Income Tax Calculator
You are deciding between the Old and New Tax Regimes and need personalised numbers
You want to see how specific investments or deductions can reduce your tax bill
You are evaluating a job offer or salary change and want to know the net in-hand impact

Do not rely solely on this Income Tax Calculator when:

The decision involves complex legal or regulatory factors requiring professional expertise
Large sums of money or irreversible commitments are at stake
Your personal situation has unusual features that a general calculator cannot capture
You need personalised advice considering your complete financial picture

In these cases, use the Income Tax Calculator as a starting point, then consult a qualified CA, SEBI-registered investment adviser, or financial planner before deciding.

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