Income Tax Calculator FY 2026-27 (AY 2027-28)
The Income Tax Calculator for FY 2026-27 (AY 2027-28) evaluates your net tax liability by comparing the statutory New Tax Regime (Section 115BAC)—featuring the enhanced ₹75,000 standard deduction and ₹7,00,000 rebate threshold—against the Old Tax Regime with itemized exemptions (80C, 80D, HRA, home loan interest).
Income & Deductions (FY 2026-27)
AY 2027-28Eligible for ₹75,000 standard deduction in New Regime
With lower progressive tax slabs and the enhanced ₹75,000 standard deduction, the New Tax Regime (Section 115BAC) delivers maximum in-hand salary with zero lock-in requirements.
New Regime Slab-Wise Tax Breakdown
| Income Slab | Rate | Taxable in Slab | Tax |
|---|---|---|---|
| Up to ₹3,00,000 | 0% | ₹ 3,00,000 | ₹ 0 |
| ₹3,00,001 - ₹7,00,000 | 5% | ₹ 4,00,000 | ₹ 20,000 |
| ₹7,00,001 - ₹10,00,000 | 10% | ₹ 3,00,000 | ₹ 30,000 |
| ₹10,00,001 - ₹12,00,000 | 15% | ₹ 1,25,000 | ₹ 18,750 |
Income Tax Slabs for FY 2026-27 (New Tax Regime)
The New Tax Regime is the default regime under the Indian Income-tax Act. Below are the statutory tax rates for individuals and Hindu Undivided Families (HUFs):
| Income Range | Tax Rate | Key Provisions & Rebates |
|---|---|---|
| ₹0 - ₹3,00,000 | NIL | Basic Exemption Limit for all individuals |
| ₹3,00,001 - ₹7,00,000 | 5% | 100% Tax Rebate under Section 87A (Zero tax up to ₹7L taxable income) |
| ₹7,00,001 - ₹10,00,000 | 10% | Progressive bracket with lower rates than Old Regime |
| ₹10,00,001 - ₹12,00,000 | 15% | Old Regime charges 30% above ₹10 Lakh |
| ₹12,00,001 - ₹15,00,000 | 20% | Allows substantial savings for middle and upper-middle income earners |
| Above ₹15,00,000 | 30% | Applicable on surplus income above ₹15 Lakh (+ 4% Health & Education Cess) |
Worked Tax Scenarios
Example 1: Salaried Professional Earning ₹7,50,000/Year (Zero Tax)
A software engineer earning ₹7,50,000 under the New Tax Regime receives the ₹75,000 standard deduction, reducing taxable income to ₹6,75,000. Because taxable income is under ₹7,00,000, Section 87A rebate provides 100% tax relief: Net Tax Payable is exactly ₹0.
Example 2: ₹15 Lakh Salary with Standard Deductions
At ₹15,00,000 annual CTC, the New Tax Regime yields a total tax of ₹1,40,400. In the Old Regime, even after claiming ₹1.5L under 80C and ₹25,000 in health insurance, the tax is ₹2,00,200. The New Regime saves ₹59,800 without requiring forced lock-in investments.
Example 3: High Deductions with ₹20 Lakh CTC (Home Loan + HRA)
When an individual has heavy tax deductions exceeding ₹4,25,000 (Section 80C + 80D + ₹2 Lakh home loan interest + HRA exemption), the Old Tax Regime may become advantageous. Our engine dynamically tests this crossover point.
Understanding the Breakeven Threshold
How do you decide between the New and Old Tax Regime? For most salaried professionals without a home loan, the New Tax Regime is mathematically superior. To make the Old Regime advantageous at an annual salary of ₹15 Lakh, you need total deductions exceeding ₹4,25,000 (e.g. ₹1.5L 80C + ₹50k 80D + ₹2L Home loan interest + HRA). Our live calculator above dynamically calculates your unique crossover point.
Frequently Asked Questions
Is the ₹75,000 standard deduction available to freelancers or consultants?
No. The standard deduction is strictly available to individuals receiving salary or pension income under Section 16(ia). Freelancers and independent professionals file under Section 44ADA (presumptive taxation), declaring 50% of gross receipts as taxable profits.
Can I switch between the New and Old Regime each year?
Salaried individuals without business income can freely switch between the New and Old Tax Regime every financial year when filing their ITR on or before the July 31 due date. Individuals with business/profession income can opt out of the New Regime only once in their lifetime.
Related Calculators & Next Steps
Hand-curated tools based on your calculation journey:
Detailed side-by-side breakdown of the exact deduction threshold where Old Regime beats New Regime.
Calculate the statutory tax exemption on your gratuity under Section 10(10).
Find your revised post-tax in-hand pay after an upcoming increment.
Plan tax-saving liquid funds to keep your household secure.
- ›Income Tax Department of India (CBDT): Tax Slabs & Provisions for FY 2026-27
- ›Finance Act (Government of India): Section 115BAC & Section 87A Rebate Thresholds
- ›CBDT Circular on Tax Deduction at Source (TDS) for Salaried Employees
Disclaimer: This tool provides computational estimates for educational and informational purposes only. It does not constitute personal financial, tax, or legal advice. Consult a certified financial planner or CA for specific advice.