Income Tax Calculator 2026-27 — old vs new regime
Enter your salary and, if you claim them, your deductions. See the tax under both regimes side by side, with every step, and which one saves you more.
Deductions (old regime only)
New regime ✓
Old regime
The new regime saves ₹1,05,300 a year. Salary and other income at slab rates; capital gains and business income are not included.
Spendly knows your salary: the income tax calculator in the app starts from it, and every month shows what is truly safe to spend after bills.
Open Spendly →How it is calculated
New regime: your salary minus the ₹75,000 standard deduction is taxed on the new slabs. If taxable income is ₹12 lakh or less, the 87A rebate makes the tax nil; just above ₹12 lakh, marginal relief keeps the tax no higher than the income above ₹12 lakh.
Old regime: the ₹50,000 standard deduction and the deductions you claim — 80C, 80D, NPS, home-loan interest, HRA — come off first, then the old slabs apply (higher exemption for 60+ and 80+). Taxable income up to ₹5 lakh gets a rebate of up to ₹12,500.
Then surcharge above ₹50 lakh (with marginal relief) and 4% health and education cess on both.
Budget 2026 changed no slab, rate or deduction limit: tax year 2026-27 uses the same figures as 2025-26. It is the first year under the Income-tax Act 2025, which renumbers sections but keeps these limits.
New regime slabs (2026-27): 0–4L nil · 4–8L 5% · 8–12L 10% · 12–16L 15% · 16–20L 20% · 20–24L 25% · above 24L 30% Old regime (below 60): 0–2.5L nil · 2.5–5L 5% · 5–10L 20% · above 10L 30% Tax = slab tax − 87A rebate + surcharge, then + 4% cess
Questions
Which regime is better for me?
The new regime wins for most people unless they claim large deductions — typically a home loan, full 80C and HRA together. The calculator shows both with your numbers.
Is income up to ₹12 lakh tax-free?
In the new regime, yes: taxable income up to ₹12 lakh gets a full 87A rebate. For a salaried person that is a salary of ₹12.75 lakh, after the ₹75,000 standard deduction.
What is marginal relief?
Just above ₹12 lakh, the tax is capped at the income above ₹12 lakh, so earning ₹10,000 more never costs more than ₹10,000 in tax. The same idea applies at each surcharge threshold.
Which deductions does the new regime allow?
The ₹75,000 standard deduction and the employer’s NPS contribution (up to 14% of basic). 80C, 80D, HRA and home-loan interest on a self-occupied house are old-regime only.
Does this include capital gains?
No. Capital gains, lottery winnings and other special-rate income are taxed separately; this calculator covers salary and other income taxed at slab rates.