Income Tax Calculator - FY 2026-27 (AY 2027-28)

An Income Tax Calculator helps you estimate how much income tax you may need to pay based on your annual income, eligible deductions, tax regime and other applicable details. Instead of calculating each tax slab manually, you can enter your financial information and get an estimate of your tax liability.

Whether you are a salaried employee, a freelancer or an individual earning income from multiple sources, an income tax calculator can help you understand your estimated tax payable and plan your finances more effectively.

A salary income tax calculator is particularly useful when comparing the old and new tax regimes, estimating your take-home salary and checking how deductions or exemptions may affect your tax liability. A taxable income calculator can also help you understand how your gross income differs from the income on which tax is calculated.

The result is an estimate, not a substitute for filing your income tax return. Your final tax liability may differ depending on your income details, eligible claims, tax credits, surcharge, cess and applicable rules.

What Is an Income Tax Calculator?

An Income Tax Calculator is an online tool that estimates your income tax liability for a selected financial year. It applies the relevant tax slabs and considers the information you provide, such as salary, other income, deductions and tax regime.

A typical calculator may help you estimate:

• Gross annual income and taxable income
• Tax payable under the old tax regime
• Tax payable under the new tax regime
• Applicable rebate, surcharge and health and education cess
• Tax already deducted or paid, where supported
• Estimated tax payable or refund due

For salaried individuals, the calculator can also help compare how different tax regimes may affect their annual tax liability. The accuracy of the result depends on the completeness of your inputs and whether the calculator reflects the rules applicable to the relevant financial year.

What Is the New Tax Regime?

The new tax regime is a tax system that offers revised income tax slabs and lower tax rates across several income brackets, while limiting many deductions and exemptions available under the old regime.

It is the default tax regime for eligible taxpayers in India. However, eligible individuals can choose the old regime if it better suits their financial circumstances. The right choice depends on your taxable income, eligible deductions, exemptions and other sources of income.

Under the new regime, you generally cannot claim deductions such as Section 80C investments, Section 80D health insurance premiums or HRA exemption. Certain deductions remain available under specified conditions, including the standard deduction for eligible salaried taxpayers.

New Tax Regime Slab Rates for FY 2025–26 and FY 2026–27

The new-regime slabs for AY 2026–27 are listed below. The official Budget 2026 FAQs also provide the same slab structure for tax year 2026–27 under the new Income-tax Act.

These are progressive tax slabs. Each rate applies only to the income falling within that bracket, rather than to your entire income.

For example, if your taxable income is ₹15 lakh, the 30% rate does not apply to the full ₹15 lakh. The applicable rates are calculated separately across the relevant slabs.

Old Tax Regime Slab Rates for FY 2025–26

The old tax regime offers a wider range of deductions and exemptions, but its slab rates differ from those of the new regime. For individuals below 60 years of age, the standard slabs for FY 2025–26 are as follows.

The old regime also provides a rebate under Section 87A to eligible resident individuals with total income up to ₹5 lakh, subject to applicable conditions.

For FY 2026–27, check the applicable rules for the relevant tax year before relying on a calculator result. The old regime's deductions and tax treatment should be compared against the new regime using your actual financial details.

How to Use an Income Tax Calculator for FY 2026–27

An online Income Tax Calculator can help you estimate your tax liability for FY 2026–27 (AY 2027–28). Follow these steps:

1. Select the financial year: Choose FY 2026–27 and ensure the calculator supports the relevant tax rules.
2. Enter your income: Add your annual salary, allowances, bonuses and other taxable income.
3. Add other income sources: Include applicable interest, rental income, capital gains or business income.
4. Choose a tax regime: Compare the old and new regimes if both are available to you.
5. Enter deductions and exemptions: Add eligible deductions under the selected regime.
6. Include tax already paid: Enter TDS, advance tax and other eligible tax credits if the calculator supports them.
7. Review the result: Check the estimated tax, cess, surcharge where applicable, and any remaining amount payable or potential refund.

The calculator should use the tax rules applicable to the selected financial year. If a tool has not been updated for FY 2026–27, its result may not be reliable for that year.

Income Tax Slabs for Senior Citizens

Under the old tax regime, resident senior citizens aged 60 years or above but below 80 receive a higher basic exemption limit than individuals below 60. The new tax regime generally uses the same slabs irrespective of age.

These are slab rates, before applying any eligible rebate, surcharge or cess.

Income Tax Slabs for Super Senior Citizens

Resident individuals aged 80 years or above receive a higher basic exemption limit under the old tax regime.

The new regime generally does not provide a separate age-based slab structure. Senior and super senior citizens should compare both regimes based on their income, deductions and applicable tax rules.

Deductions Under the Old vs New Regime

The availability of deductions is one of the main differences between the two tax regimes.

The exact eligibility and limits depend on the relevant provision, type of income and tax year. Do not assume that every deduction available under the old regime can be claimed under the new regime.

How Much Tax Will You Pay? Salary-Wise Breakdown

Your annual salary alone does not determine your final tax liability. The calculation also depends on the standard deduction, other income, eligible deductions and rebates.

The following table provides a simplified illustration under the new regime for eligible salaried individuals. It assumes no additional income, no special-rate income, a ₹75,000 standard deduction, and the applicable rebate for eligible resident individuals.

Illustrations use the new-regime slabs and rebate rules applicable to the relevant tax year. Actual liability can vary with eligibility, other income, special-rate income, surcharge and tax credits.

This comparison shows why the tax regime and applicable rebate matter. Two people earning the same salary may have different tax liabilities because of their income composition or eligibility for deductions.

Zero Tax on Income Up to ₹12 Lakh: How It Works

Under the new tax regime applicable from AY 2026–27, eligible resident individuals with total taxable income up to ₹12 lakh can receive a rebate of up to ₹60,000 under Section 87A. This can reduce their income tax on normal slab-rate income to zero, subject to the applicable conditions. The rebate does not apply to tax on certain special-rate income.

For salaried individuals, the standard deduction can increase the salary level at which this zero-tax outcome may apply. With a ₹75,000 standard deduction, a qualifying salaried individual with salary income up to ₹12.75 lakh may have taxable income of ₹12 lakh.

However, this is not a universal exemption for every kind of income. Eligibility for the rebate, the nature of income and other conditions matter. Income above the threshold may also be subject to marginal relief where applicable.

How to Calculate Income Tax on Salary

To calculate income tax on salary, start with your annual salary and work out your taxable income.

A simplified process is:

1. Add your salary components and other taxable income.
2. Subtract the deductions and exemptions allowed under your chosen regime.
3. Apply the relevant income tax slabs to the resulting taxable income.
4. Subtract any eligible rebate.
5. Add surcharge, if applicable, and health and education cess.
6. Subtract TDS, advance tax and other eligible tax credits to estimate the remaining amount payable or refund.

The exact calculation can be more involved if you earn capital gains, have business income, receive arrears or qualify for special tax treatment. A salary income tax calculator can make this process easier, provided it supports those details.

Benefits of Using an Income Tax Calculator

An Income Tax Calculator can help you plan your finances and understand your estimated tax liability without doing every calculation manually.

• Quick estimates: Calculate your estimated tax using the relevant slabs and inputs.
• Compare tax regimes: Check whether the old or new regime may be more suitable.
• Plan deductions: Understand how eligible deductions affect taxable income under the old regime.
• Estimate take-home income: Get a clearer picture of your income after estimated tax.
• Review TDS: Compare estimated liability with tax already deducted or paid.
• Plan ahead: Make informed decisions about savings, investments and tax payments.

A calculator is a planning aid. Use the official income tax portal and applicable rules to confirm your final liability and file your return correctly.

Example: Tax Calculation on ₹15 Lakh Salary

Consider a salaried individual with annual salary income of ₹15,00,000 who opts for the new tax regime.

For this simplified example, assume the individual is eligible for the ₹75,000 standard deduction and has no other income or special-rate income.

The tax is calculated progressively across the slabs:

This example demonstrates how slab-wise taxation works. Your actual liability may differ if you have additional income, deductions, tax credits or other applicable adjustments.

Calculate Your Tax With an Income Tax Calculator

An income tax calculator helps you estimate tax liability, compare tax regimes and understand how deductions and rebates may affect your finances. Use a taxable income calculator to estimate the income on which tax is charged, and a salary income tax calculator to review the likely tax on your annual salary.

Before relying on the result, select the correct financial year, enter all relevant income and deductions, and confirm the latest applicable rules. Tax planning is most effective when it reflects your actual financial situation rather than relying on a single headline tax threshold.