Income Tax Calculator Online in India (FY 2026–27)

Calculating your income tax often gets confusing with changing tax slabs, deductions, exemptions, and multiple income sources. RegisterKaro’s free Income Tax Calculator brings these factors together in one simple tool. Simply enter your income and deductions, and it instantly shows the tax charged under both regimes. It also tells you which one saves you more. Built for salaried individuals, self-employed professionals, and anyone who wants a quick and reliable tax update for FY 2026–27 (AY 2027–28), including the ₹12 lakh tax-free limit under the new regime.

What Does an Income Tax Calculator Do?

An income tax calculator is an easy online tool that helps you find out the exact amount of tax you need to pay based on the Income Tax Act, 2025. It takes your income details and calculates your total tax liability in a clear, understandable way.

An income tax calculator for AY 2027-28 allows you to estimate your tax for the financial year 2026-27 using updated tax rules. It also helps you compare different tax outcomes and select the regime that benefits you the most. The tool is especially useful if you find tax laws and government filing systems difficult to understand.

Note: The income earned from April, 2026 is governed by the Income Tax Act, 2025. Certain sections have been updated and merged, so ensure you check the accurately applied section for the precise year you are filing income tax for. Get assistance from a professional CA to understand the applicable rates for your case.

Revised Income Tax Slabs Under New Regime for FY 2026–2027 (AY 2027–2028)

The income tax slabs for FY 2026–27 (AY 2027–28) differ significantly between the old and new regimes. The new regime uses lower slab rates and a higher basic exemption limit, while the old regime continues to offer a broader range of deductions and exemptions. An income tax calculator can apply the relevant slabs automatically and compare the final tax liability under both regimes.

Deductions Available Under the Old vs New Regime

The main difference between the two regimes lies in the deductions and exemptions you can claim. The old regime permits several deductions and exemptions that can reduce taxable income, while the new regime offers lower slab rates but restricts most of these benefits.

Deduction / Exemption	Old Regime	New Regime
Standard Deduction (salaried/pensioners)	₹50,000	₹75,000
Section 80C (PPF, ELSS, LIC, EPF, etc.)	Up to ₹1.5 lakh	Not available
Section 80D (health insurance)	Available	Not available
HRA and LTA exemptions	Available	Not available
Home loan interest (self-occupied)	Up to ₹2 lakh	Not available
Section 80CCD(1B) – NPS (additional ₹50,000)	Available	Not available
Employer's NPS contribution – Section 80CCD(2)	Available	Available
Section 87A rebate	Up to ₹5 lakh income	Up to ₹12 lakh income

Note: A standard deduction of ₹75,000 (new regime) or ₹50,000 (old regime) is available to salaried individuals and pensioners. Note that the new regime is the default, and you must actively opt for the old regime if it works out better for you.

New Regime Income Tax Slabs (FY 2026–27)

The table below shows the applicable income tax slab rates under the new tax regime for individual taxpayers for FY 2026–27:

Income Tax Slabs (₹)	Income Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
Above ₹24,00,000	30%

Note: Under the new regime, you do not pay any income tax on income up to ₹12 lakh because the Section 87A rebate (up to ₹60,000) reduces the tax to nil. For salaried individuals, the ₹75,000 standard deduction raises this to ₹12.75 lakh of salary. If your income slightly exceeds ₹12 lakh, marginal relief ensures the extra tax never exceeds the amount of income above ₹12 lakh.

However, the rebate does not cover income taxed at special rates, such as capital gains.

Old Regime Income Tax Slabs (Individuals Below 60 Years)

The table below shows the income tax slab rates applicable to resident individuals below 60 years of age under the old tax regime for FY 2026–27:

Income Tax Slabs (₹)	Income Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

Old Regime Income Tax Slabs (Resident Individuals Aged 60–80 Years)

The table below shows the income tax slab rates applicable to resident individuals aged between 60 and 80 years under the old tax regime for FY 2026–27:

Income Tax Slabs (₹)	Income Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

Old Regime Income Tax Slabs (Resident Individuals Above 80 Years)

The table below shows the income tax slab rates applicable to resident individuals above 80 years of age under the old tax regime for FY 2026–27:

Income Tax Slabs (₹)	Income Tax Rate
Up to ₹5,00,000	Nil
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

Note: Under the old tax regime, the Section 87A rebate can reduce tax liability to nil for taxable income up to ₹5 lakh. Senior citizens aged 60–80 years get a basic exemption limit of ₹3 lakh, while super senior citizens aged 80 years and above get a higher limit of ₹5 lakh.

Surcharge and Health & Education Cess

If your total income crosses certain limits, a surcharge applies on top of your income tax. The rates differ between the two regimes:

Total Income	Surcharge (Old Regime)	Surcharge (New Regime)
Above ₹50 lakh – up to ₹1 crore	10%	10%
Above ₹1 crore – up to ₹2 crore	15%	15%
Above ₹2 crore – up to ₹5 crore	25%	25%
Above ₹5 crore	37%	25% (capped)

Note: Surcharge on capital gains under Sections 111A and 112A (now Sections 196 and 198) and on dividends is separately capped at 15% in both regimes, even where total income exceeds ₹2 crore. Marginal relief is available at each surcharge threshold, so a small increase in income above a limit does not raise your total tax by more than the additional income. The 4% Health and Education Cess is then calculated on income tax plus surcharge, after marginal relief has been applied.

Rebate Under Section 87A

The table below shows the income limits up to which taxpayers can claim a rebate under Section 87A for FY 2026–27, along with the maximum rebate available under both tax regimes:

Regime	Income Limit (₹)	Maximum Rebate (₹)
Old Regime	₹5,00,000	₹12,500
New Regime	₹12,00,000	₹60,000

Note: Under the new tax regime, the Section 87A rebate can reduce tax to nil on taxable income up to ₹12 lakh, while marginal relief can apply when income is slightly above ₹12 lakh. From FY 2025–26, the rebate does not apply to income taxed at special rates, such as long-term capital gains under Section 112A.

Income Tax Calculation Formula for FY 2026-27

Online income tax calculators use a step-by-step calculation rather than applying one rate to your entire income. This is because the tax system uses progressive slab rates, meaning each portion of your taxable income is taxed at the rate applicable to that slab.

You can calculate your income tax using a standard formula applied by most online income tax calculators.

Income Tax = (Taxable Income × Applicable Slab Rate) – Rebate (if any) + Surcharge (if applicable) + Health & Education Cess (4%)

Here’s how each component works:

• Taxable Income: Start with your gross total income, then subtract eligible exemptions and deductions under your chosen tax regime from total income.
• Basic Tax: Apply the applicable income tax slab rates progressively to the taxable income. For example, the first ₹4 lakh is taxed at nil, the next slab at 5%.
• Rebate (if applicable): Reduce tax under Section 87A for eligible taxpayers (up to ₹60,000 under the new regime, ₹12,500 under the old regime), which can make the tax nil up to ₹12 lakh (new regime).
• Add Surcharge: Apply a surcharge if your total income crosses ₹50 lakh, at the applicable rate for your regime, with marginal relief where it applies.
• Add Cess: Include 4% Health and Education Cess on the total of income tax plus surcharge.

Income Tax Calculation Example: New Regime

Suppose Rohan is a salaried employee earning a gross salary of ₹16,75,000 in FY 2026–27. After claiming the ₹75,000 standard deduction, his taxable income becomes ₹16,00,000. Under the new regime, tax is calculated progressively across the slabs:

• ₹0–₹4 lakh: Nil
• ₹4–₹8 lakh: 5% = ₹20,000
• ₹8–₹12 lakh: 10% = ₹40,000
• ₹12–₹16 lakh: 15% = ₹60,000

This gives a basic tax of ₹1,20,000. Since his taxable income exceeds ₹12 lakh, the Section 87A rebate does not apply. His income is also below ₹50 lakh, so no surcharge is payable. Adding 4% health and education cess of ₹4,800 brings his total tax liability to ₹1,24,800.

How to Use RegisterKaro’s Free Income Tax Calculator?

Follow these steps to calculate income tax online and compare the old and new tax regimes using our Income Tax Calculator:

Step 1: Select the financial year for which you want to calculate your tax.

Step 2: Choose your age group, as tax liability under the old regime depends on age.

Step 3: Click on Continue to proceed.

Step 4: Enter your income details before deductions such as HRA or LTA. If any exempt allowances apply, enter them in the relevant fields.

Step 5: Add other details such as interest income, rental income, and home loan interest for rented or self-occupied property.

Step 6: If applicable, enter income from digital assets (VDAs/crypto) after reducing the cost of acquisition from the sale value.

Step 7: Click on Continue again.

Step 8: Enter eligible tax-saving investments and deductions under sections such as 80C, 80D, 80G, 80E, and 80TTA.

Step 9: Click on Calculate to view your tax liability and compare the results under both tax regimes.

Old vs New Tax Regime: Which Should You Choose for FY 2026-27?

For FY 2026–27, you can calculate your tax under either the old tax regime or the new tax regime.

Here's a quick comparison:

Feature	Old Regime	New Regime
Section 80C deduction	Up to ₹1.5 lakh	Not available
Section 80D deduction	Available for eligible health insurance premiums	Not available
HRA exemption	Available, subject to conditions	Not available
LTA exemption	Available, subject to conditions	Not available
Home loan interest under Section 24(b)	Available for eligible self-occupied property	Generally not available for self-occupied property
NPS deduction under Section 80CCD(1B)	Additional deduction up to ₹50,000	Not available
Employer NPS contribution	Deduction available subject to applicable limits	Deduction available, subject to applicable limits
Family pension deduction	Lower of one-third of pension or ₹15,000	Lower of one-third of pension or ₹25,000
Tax rebate eligibility	Section 87A up to ₹5 lakh taxable income	Section 87A up to ₹12 lakh taxable income, subject to applicable rules
Marginal relief	Available where applicable	Available around the ₹12 lakh rebate threshold
Capital gains at special rates	Taxed separately	Taxed separately; Section 87A rebate restrictions apply
Tax planning flexibility	Higher	Lower
Record-keeping	More documentation for deductions/exemptions	Simpler because fewer deductions are available
Ease of calculation	More complex	Relatively simpler
Suitable for	Taxpayers with substantial eligible deductions	Taxpayers with limited deductions

How to Calculate Income Tax on Salary With Example

Income from salary includes basic pay, HRA, special allowance, transport allowance, and other taxable allowances. You must first calculate your total salary income, subtract eligible exemptions and deductions, and then apply the applicable tax slabs. A salary income tax calculator automates this process and shows accurate results instantly.

Let’s understand the calculation step by step with an example of Amit, who earns:

• Basic Salary: ₹90,000 per month
• HRA: ₹40,000 per month
• Special Allowance: ₹18,000 per month
• LTA: ₹24,000 annually
• Rent Paid: ₹30,000 per month (Mumbai)
• Savings account interest: ₹6,000
• Fixed deposit interest: ₹14,000

Step 1: Calculate Gross Salary Income

Income from Salary = Basic Salary + HRA + Special Allowance + Transport Allowance + Other Allowances

Nature	Amount (₹)	Exemption/Deduction	Taxable Income (Old Regime)	Taxable Income (New Regime)
Basic Salary	10,80,000	–	10,80,000	10,80,000
HRA	4,80,000	2,52,000	2,28,000	4,80,000
Special Allowance	2,16,000	–	2,16,000	2,16,000
LTA	24,000	14,000	10,000	24,000
Standard Deduction	–	50,000	50,000	75,000
Gross Income from Salary	–	–	14,84,000	17,25,000

Step 2: Add Income from Other Sources

Amit also earns ₹6,000 from savings account interest and ₹14,000 from fixed deposits, making a total of ₹20,000.

Step 3: Claim Deductions (Old Regime Only)

Under the old regime, Amit can lower his taxable income by claiming eligible deductions on his investments and expenses:

Section	Maximum Limit	Investment Made	Amount Claimed (₹)
80C	1,50,000	PPF ₹40,000, ELSS ₹25,000, LIC ₹10,000, EPF ₹1,30,000	1,50,000
80D	25,000	Medical insurance ₹15,000	15,000
80TTA	10,000	Savings account interest ₹6,000	6,000
Total Deductions	–	–	1,71,000

Step 4: Calculate Gross Taxable Income

After applying Amit's deductions, here is how his taxable income and final tax work out under both regimes:

Nature	Old Regime (₹)	New Regime (₹)
Income from Salary	14,84,000	17,25,000
Income from Other Sources	20,000	20,000
Gross Total Income	15,04,000	17,45,000
Total Deductions	1,71,000	Not applicable
Taxable Income	13,33,000	17,45,000
Total Tax Payable (including cess)	2,20,896	1,54,960

Under the old regime, Amit reduces taxable income through deductions but still pays higher tax (₹2,20,896) due to slab rates.

Under the new regime, Amit cannot claim most deductions, but lower slab rates result in a lower (₹1,54,960) tax liability.

Benefits of Using the Income Tax Calculator

Using an income tax calculator helps you estimate your tax liability quickly and accurately without manual calculations. Our Income Tax Calculator is designed to simplify tax planning for individuals with different income sources.

Key benefits include:

• Accurate tax estimation: It calculates tax based on the latest slab rates and rules for the selected financial year.
• Easy comparison of regimes: You can compare tax liability under the old and new regimes in one place.
• Time-saving: It gives instant results without complex formulas or paperwork.
• Better tax planning: It helps you understand how deductions, investments, and exemptions affect your taxes.
• User-friendly: You only need to enter basic income and deduction details to get results.
• Error-free filing support: It reduces the chances of mistakes before filing your income tax return.
• Always up to date: It reflects the latest Budget changes, so your estimate matches current tax rules.