Income Tax Calculator 2026-27
Compare Old vs New Tax Regime — Find which one saves you more
📋 Enter Your Income Details
📝 Deductions (Old Regime only)
📖 Complete Guide to Income Tax Calculation in India
Understanding income tax calculation is essential for every earning individual in India. With two tax regimes (old and new) to choose from, proper tax planning can save you lakhs every year. Our free income tax calculator helps you compare both regimes and choose the one that minimizes your tax liability.
📊 Tax Slabs — Old vs New Regime (FY 2026-27 / AY 2027-28)
| Income Slab | Old Regime | New Regime |
|---|---|---|
| Up to ₹2.5 Lakh | Nil | Nil (up to ₹4L) |
| ₹2.5L - ₹5L | 5% | — |
| ₹4L - ₹8L | — | 5% |
| ₹5L - ₹10L | 20% | — |
| ₹8L - ₹12L | — | 10% |
| ₹10L - ₹12L | 30% | — |
| ₹12L - ₹16L | 30% | 15% |
| ₹16L - ₹20L | 30% | 20% |
| ₹20L - ₹24L | 30% | 25% |
| Above ₹24L | 30% | 30% |
+ 4% Health & Education Cess on total tax. Surcharge applies above ₹50 Lakh. Under the new regime, income up to ₹12 lakh is effectively tax-free via the Section 87A rebate (₹75,000 standard deduction already applied).
🏦 Key Tax Deductions (Old Regime)
| Section | Deduction | Max Limit | Eligible Investments |
|---|---|---|---|
| 80C | Investment deductions | ₹1.5 Lakh | ELSS, PPF, EPF, NPS, Life Insurance, 5yr FD, NSC |
| 80CCD(1B) | NPS extra | ₹50,000 | National Pension System (over and above 80C) |
| 80D | Health insurance | ₹25-75K | Self, family & parents health insurance premiums |
| 24(b) | Home loan interest | ₹2 Lakh | Interest paid on home loan (self-occupied property) |
| HRA | House Rent Allowance | As per rules | Rent paid for accommodation |
💡 Tax Saving Tips
- Start tax planning in April: Don't wait until January-March to make investments
- Max out 80C with ELSS SIP: ₹12,500/month SIP in ELSS covers full ₹1.5L 80C limit with higher returns than PPF
- Claim NPS 80CCD(1B): Extra ₹50,000 deduction over 80C — saves ₹15,600 tax (30% slab)
- Get health insurance: ₹25K premium saves ₹7,800 tax (30% slab) plus covers medical emergencies
- Use our calculator to compare regimes — new regime may be better if your deductions are below ₹3 Lakh
❓ Frequently Asked Questions
Q: How to calculate income tax?
A: Income tax is calculated by: 1) Add up all income sources (salary, rental, interest, capital gains). 2) Subtract deductions (80C, 80D, HRA, etc. in old regime). 3) Apply tax slab rates to the taxable income. 4) Add cess (4% health & education cess). Our calculator does this instantly.
Q: Old regime vs New regime — which is better?
A: New regime has lower tax rates but no deductions. Old regime allows deductions (80C, 80D, HRA, etc.) reducing taxable income. If your total deductions exceed ₹3-3.5 Lakh, old regime usually saves more tax. Use our calculator to compare both and choose the better option.
Q: What are the income tax slabs?
A: New Regime (FY 2026-27 / AY 2027-28): Up to ₹4L = Nil, ₹4-8L = 5%, ₹8-12L = 10%, ₹12-16L = 15%, ₹16-20L = 20%, ₹20-24L = 25%, Above ₹24L = 30%. Income up to ₹12 lakh is effectively tax-free via the Section 87A rebate. Old Regime: Up to ₹2.5L = Nil, ₹2.5-5L = 5%, ₹5-10L = 20%, Above ₹10L = 30%.
Q: What deductions are available under Section 80C?
A: Section 80C allows up to ₹1.5 Lakh deduction for: ELSS mutual funds, PPF, EPF, NPS (₹50K extra under 80CCD), life insurance premiums, ULIP, NSC, 5-year FD, home loan principal repayment, children's tuition fees, and Sukanya Samriddhi.
Q: How does HRA exemption work?
A: HRA exemption is the minimum of: 1) Actual HRA received, 2) 50% of salary (metro) or 40% (non-metro), 3) Rent paid minus 10% of salary. If you pay ₹20,000 rent on ₹6L salary with ₹1.2L HRA, exemption ≈ ₹1.2L. Only available in old regime.
Q: What is Section 80D deduction?
A: Section 80D covers health insurance premiums: ₹25,000 for self & family + ₹25,000 for parents (₹50,000 if parents are senior citizens). Preventive health checkup included up to ₹5,000. Total maximum: ₹75,000 if parents are seniors.
Q: Is the new tax regime compulsory?
A: No. New regime is the default, but you can opt for old regime while filing ITR. Salaried employees can inform their employer to deduct TDS as per old regime. Self-employed can choose at the time of filing.
Q: How to save maximum income tax?
A: Under old regime: Max out 80C (₹1.5L in ELSS/PPF), claim 80D (₹25-75K health insurance), HRA exemption, NPS 80CCD(1B) (₹50K extra), home loan interest (₹2L under Section 24). Total potential savings: ₹4-5 Lakh in deductions.
Q: What is the standard deduction for salaried employees?
A: The standard deduction is ₹75,000 under the new regime (raised in Budget 2024) and ₹50,000 under the old regime. It is available to all salaried employees with no proof or investment required — it is automatically deducted from your salary income.
Q: Is tax-saving FD better than ELSS?
A: ELSS is better: 3-year lock-in vs 5-year FD lock-in, 12-15% returns vs 6-7% FD returns, LTCG tax (10% above ₹1L) vs FD interest taxed at slab. However, ELSS carries market risk while FD gives guaranteed returns. Choose ELSS for long-term wealth, FD for safety.
Q: What is advance tax?
A: If your tax liability exceeds ₹10,000 in a year, you must pay advance tax in quarterly installments (15% by June 15, 45% by Sep 15, 75% by Dec 15, 100% by Mar 15). Salaried employees usually don't need to worry as TDS covers most tax.
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