Calculator
Income Tax Calculator
Total salary before any deductions. The standard deduction is allowed only against salary income.
Tax vs take-home
- Total tax₹00%
- Take-home₹12,00,000100%
Estimate for FY 2026-27 (AY 2027-28), salaried resident individual below 60; the slabs, rebate and standard deduction are unchanged from FY 2025-26, so it also fits that year. Includes standard deduction, Section 87A rebate with marginal relief just above ₹12 lakh (new regime), surcharge above ₹50 lakh with marginal relief, and 4% cess. Excludes special-rate income (capital gains, lottery) and non-salary income, which gets no standard deduction. Verify with a tax professional or the official e-filing portal before filing.
This calculator estimates your income tax for FY 2026-27 (Assessment Year 2027-28) under either the new or the old regime. It applies the relevant slab rates, the standard deduction for salaried taxpayers, the Section 87A rebate with marginal relief, surcharge above ₹50 lakh, and the 4% health and education cess. Enter your gross annual income — and, for the old regime, your total deductions like 80C and 80D — to see your estimated tax, effective tax rate, and annual take-home, so you can choose the regime that costs you less.
What your result means
- Your effective rate (tax ÷ income) is always lower than your slab rate, because only the income inside each slab is taxed at that slab’s rate.
- The new regime is simpler with lower slab rates but almost no deductions; the old regime can win if you claim large 80C, 80D, HRA, and home-loan benefits — compare both.
- A 4% health-and-education cess applies on top of the tax, and a surcharge kicks in at higher incomes.
How to use this calculator
- Enter your gross annual income before any deductions.
- Pick the new regime first — it is the default and needs no deductions.
- Switch to the old regime and enter your total deductions (80C, 80D, HRA, home-loan interest) to compare.
- Compare “total tax payable” between the two regimes and choose the lower one.
- Use the effective tax rate to understand your real tax burden, not just the slab you fall in.
The formula
Taxable income = Gross − Standard deduction (₹75,000 new / ₹50,000 old) − eligible deductions (old regime only). Tax = sum of slab rates applied band-by-band. If the Section 87A rebate applies (taxable ≤ ₹12L new / ≤ ₹5L old), tax becomes nil. New regime only: above ₹12L, marginal relief caps the tax at the income above ₹12L, until taxable income reaches ₹12,70,588. Surcharge (10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr; 37% above ₹5Cr in the old regime) is added, with marginal relief at each threshold. Total = (Tax + surcharge) + 4% cess.
Worked example
Gross salary ₹15,00,000, new regime: taxable = ₹15,00,000 − ₹75,000 = ₹14,25,000. Slab tax = 0 (to 4L) + ₹20,000 (4–8L) + ₹40,000 (8–12L) + ₹33,750 (12–14.25L) = ₹93,750. Cess 4% = ₹3,750. Total ≈ ₹97,500. Under the old regime with ₹2,00,000 deductions, taxable = ₹12,50,000, slab tax = ₹1,87,500, cess ₹7,500, total ≈ ₹1,95,000 — so the new regime is cheaper here by nearly ₹98,000.
When to use it
- Deciding between the new and old tax regime for the year.
- Estimating tax before submitting your investment declaration to your employer.
- Checking how much extra 80C/80D deductions actually save under the old regime.
- Planning take-home pay and advance-tax instalments.
Frequently Asked Questions
References & sources
- Income Tax Department — Income-tax Act, 2025, section 156 (rebate and marginal relief)
- Income Tax Department — Income-tax Act, 2025, section 19 (standard deduction on salary)
- Income Tax Department — Finance Act, 2026, First Schedule (income-tax rates and surcharge)
- Income Tax e-Filing portal — slab rates, rebate, surcharge and cess for individuals
How this calculator was checked: Checked on 15 September 2026 against sections 202, 156 and 19 of the Income-tax Act, 2025, the Finance Act, 2026 rate schedule, and the e-filing portal's slab, surcharge and cess tables. Re-run on 17 test incomes, including CBDT's marginal-relief example (₹12,10,000 of taxable income pays ₹10,000 before cess) and incomes above ₹50 lakh; the check found and fixed two gaps, the missing marginal relief just above ₹12 lakh and the missing surcharge above ₹50 lakh. Assumes salary income and excludes special-rate income such as capital gains. Not reviewed by a chartered accountant, and not personalised tax advice.