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Income Tax Calculator 2026-27
Compare old vs new tax regime. Find out which saves you more.
Step 1 — Basic Income
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Interest, rental income, capital gains, etc.
Step 2 — Deductions (Old Regime)
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Max ₹1,50,000
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Max ₹2,00,000
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Old Regime vs New Regime: Which Should You Choose?
The new tax regime (introduced in FY 2020-21 and made default from FY 2023-24) offers lower tax rates but removes most deductions and exemptions. The old regime has higher rates but allows you to claim deductions under sections like 80C, 80D, HRA, and home loan interest.
When to Choose the New Regime
- You have total deductions less than ₹3-4 lakh per year
- You don't have a home loan or significant investments under 80C
- You prefer simplicity and don't want to maintain investment proofs
- You are a young professional early in your career
When to Choose the Old Regime
- You claim HRA exemption (especially in metro cities with high rent)
- You have a home loan with interest up to ₹2 lakh
- You invest heavily in 80C instruments (PPF, ELSS, LIC, etc.)
- Your total deductions exceed ₹3.5-4 lakh per year
Tax Slab Comparison (FY 2026-27)
| Income Slab | Old Regime | New Regime |
|---|---|---|
| 0 - ₹2,50,000 | Nil | Nil |
| ₹2,50,001 - ₹4,00,000 | 5% | Nil |
| ₹4,00,001 - ₹5,00,000 | 5% | 5% |
| ₹5,00,001 - ₹8,00,000 | 20% | 5% |
| ₹8,00,001 - ₹10,00,000 | 20% | 10% |
| ₹10,00,001 - ₹12,00,000 | 30% | 10% |
| ₹12,00,001 - ₹16,00,000 | 30% | 15% |
| ₹16,00,001 - ₹20,00,000 | 30% | 20% |
| ₹20,00,001 - ₹24,00,000 | 30% | 25% |
| Above ₹24,00,000 | 30% | 30% |
Frequently Asked Questions
Which tax regime is better for salaried employees in 2026?
The new tax regime is better if your total deductions are less than ₹3-4 lakh, as it offers lower slab rates without requiring investment proofs. The old regime is beneficial if you claim significant deductions under 80C (up to ₹1.5 lakh), 80D, HRA, and home loan interest (up to ₹2 lakh). Use our calculator to compare both regimes side by side.
What is the standard deduction for FY 2026-27?
Under the new tax regime, the standard deduction is ₹75,000. Under the old regime, it is ₹50,000. This deduction is available to all salaried individuals and pensioners, and it is applied automatically before computing tax.
What is Section 87A rebate under the new tax regime?
Under the new regime, Section 87A provides a rebate of up to ₹60,000 if your taxable income (after standard deduction) does not exceed ₹12 lakh. This means salaried individuals with income up to ₹12,75,000 (including ₹75,000 standard deduction) pay zero income tax under the new regime.
Can I switch between old and new tax regime every year?
Salaried employees can choose between the old and new tax regime every financial year by informing their employer. Business owners who opt for the new regime can only switch back to the old regime once, and thereafter must remain under the new regime. The choice must be made before the ITR filing deadline.
How much tax will I pay on ₹10 lakh salary in India?
Under the new regime for FY 2026-27, a ₹10 lakh salary with ₹75,000 standard deduction results in ₹2,000 tax (after Section 87A rebate). Under the old regime with ₹1.5 lakh in 80C deductions, the tax is approximately ₹46,800 including 4% cess. The new regime saves over ₹44,000 in this scenario.
What deductions are allowed only under the old tax regime?
Deductions under the old regime include Section 80C (PPF, ELSS, LIC up to ₹1.5 lakh), Section 80D (health insurance up to ₹25,000/₹50,000), HRA exemption, home loan interest under Section 24(b) up to ₹2 lakh, and Section 80G (donations). The new regime does not allow most of these deductions but offers lower slab rates.
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Disclaimer: This calculator provides an estimate based on the tax slabs for FY 2026-27. Actual tax liability may vary based on your specific situation. Please consult a qualified CA for official tax filing.