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Income Tax Calculator
Compare your estimated income tax under the new (default) and old regimes for the tax year 2026-27, the first year under the Income-tax Act, 2025. The rates are assumed unchanged from FY 2025-26 until a CA confirms them.
India income tax under both regimes — New (default) and Old — with the Section 87A rebate, marginal relief and 4% cess.
Free to run · to save projections to your live dashboard
Enter values and click Calculate to see results
Worked example
Calculated by the same engine as the calculator above.
- Inputs
- Annual Income
- ₹12,00,000
- Old-regime deductions (80C, 80D…)
- ₹1,50,000
- Result
- New regime: taxable income
- ₹11,25,000
- New regime: total tax (incl. cess)
- ₹0.00
- Old regime: taxable income
- ₹10,00,000
- Old regime: total tax (incl. cess)
- ₹1,17,000
- Saving with the new regime
- ₹1,17,000
- Net income (new regime)
- ₹12,00,000
Formula
Total tax = (slab tax - rebate or marginal relief + surcharge) × 1.04
- Taxable income = income - standard deduction (₹75,000 new, ₹50,000 old) - old-regime deductions
- Slab tax = tax on taxable income under that regime's slabs
- Rebate (section 87A of the old Act, now section 156) = up to ₹60,000 if new-regime taxable income is ≤ ₹12,00,000; up to ₹12,500 if old-regime taxable income is ≤ ₹5,00,000
- Surcharge = 10%, 15% or 25% above ₹50 lakh, ₹1 crore and ₹2 crore (old regime also 37% above ₹5 crore), with marginal relief
- 1.04 = 4% health and education cess
Assumptions
- Assumes a resident salaried individual below 60; the standard deduction is applied to the whole income you enter.
- New regime slabs: 0% up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% in ₹4 lakh steps, and 30% above ₹24 lakh. Old regime slabs: 0% up to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above.
- Deductions such as section 80C and 80D of the old Act (now sections 123 and 126) reduce taxable income only in the old regime.
- Capital gains, special-rate income and senior-citizen slabs are not handled. The tax year is picked from today's date; tax year 2026-27 values are assumed unchanged from FY 2025-26 until a CA confirms them.
- Educational estimate only, not financial advice. Capitallytics does not execute transactions.
Income Tax Calculator FAQ
Answers about how this calculator works.
Which tax regime does the calculator use by default?
It calculates both. The new regime is shown as the default, and the calculator tells you which regime gives the lower tax and by how much.
Is income up to ₹12 lakh tax-free under the new regime?
In our estimate, the rebate (section 87A of the old Act, now section 156) removes tax when new-regime taxable income is up to ₹12,00,000. With the ₹75,000 standard deduction, that covers gross salary up to ₹12,75,000, with marginal relief just above.
What deductions can I enter?
Enter your total Chapter VI-A deductions, such as section 80C and 80D of the old Act (now sections 123 and 126), in one field. They apply only to the old regime; both regimes get their own standard deduction automatically.
Are these the final rules for the tax year 2026-27?
The tax year 2026-27 rates in the engine are assumed to be the same as FY 2025-26 until a CA confirms them. Treat the result as an estimate and check with a CA before filing.
Does it include capital gains or tax for senior citizens?
No. It covers slab tax on ordinary income for individuals below 60. Capital gains and senior-citizen exemptions are not included.