Compare the old and new tax regimes side by side.
FY 2026-27 (1 April 2026 – 31 March 2027) is the first year assessed under the Income-tax Act 2025, which replaced the Income-tax Act 1961 from 1 April 2026. The Union Budget 2026 made no change to the slab rates, rebate, standard deduction, surcharge or cess — the structure introduced by the Finance Act 2025 continues, but many familiar section numbers have changed: the Section 87A rebate is now Section 156, and the new-regime provisions of Section 115BAC now live in Section 202. The new Act also does away with the old previous-year/assessment-year system in favour of a single "tax year" — FY 2026-27 is simply Tax Year 2026-27, and there is no "AY 2027-28" under the new law.
The new regime is the default. Tax is computed on your taxable income (after the deductions your chosen regime allows), then reduced by the Section 156 rebate if you qualify, then increased by surcharge (for incomes above ₹50 lakh) and the 4% Health & Education Cess.
| Income slab | Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹4,00,000 – ₹8,00,000 | 5% |
| ₹8,00,000 – ₹12,00,000 | 10% |
| ₹12,00,000 – ₹16,00,000 | 15% |
| ₹16,00,000 – ₹20,00,000 | 20% |
| ₹20,00,000 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
A resident individual with taxable income up to ₹12,00,000 pays zero tax in the new regime — the Section 156(2) rebate (up to ₹60,000) wipes out the slab tax. With the ₹75,000 standard deduction, a salary of up to ₹12,75,000 is tax-free. Just above the threshold, marginal relief ensures your tax never exceeds the amount by which your income crosses ₹12 lakh.
| Income slab (below 60) | Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,000 – ₹5,00,000 | 5% |
| ₹5,00,000 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior citizens (60–80) get a ₹3 lakh basic exemption and super-senior citizens (80+) get ₹5 lakh. The old regime keeps Chapter VI-A deductions (80C, 80D, HRA and others) and a ₹50,000 standard deduction, with a Section 156(1) rebate of up to ₹12,500 when taxable income stays within ₹5,00,000.
Surcharge applies on the tax (not the income) once total income crosses ₹50 lakh: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and — in the old regime only — 37% above ₹5 crore. The new regime caps surcharge at 25%. Marginal relief applies at every boundary so a ₹1 extra of income can never cost more than ₹1 plus that rupee's own tax. The 4% Health & Education Cess then applies on tax plus surcharge, and the final liability is rounded to the nearest ₹10 (Section 288B).
It depends entirely on your deductions. The new regime's lower rates and bigger rebate usually win for taxpayers with few deductions; the old regime can still win when substantial 80C/80D/HRA/home-loan claims stack up. That is exactly the comparison this calculator shows — enter your figures once and read both columns. For incomes up to ₹12 lakh the new regime is almost always zero-tax, which is hard to beat.
Capital gains (equity, property, debt), crypto/VDA income, lottery winnings and other special-rate income; itemised HRA/80C optimisation; AMT; and advance-tax interest under Sections 424/425 (old 234B/234C). Where your income includes any of these, treat the result as a partial estimate and consult a professional — the Section 156 rebate, notably, does not apply against special-rate income such as equity LTCG.
This calculator also covers HUF, Domestic Company, Partnership Firm / LLP, Local Authority, Co-operative Society, Foreign Company and AOP / BOI computations — switch the assessee type above the inputs. An HUF uses the same slabs but gets no Section 156 rebate; a domestic company picks a scheme (normal, Section 115BA, Section 115BAA or Section 115BAB) and pays the higher of that tax and MAT; a firm, LLP or local authority is taxed at a flat 30% (a firm can also attract 18.5% AMT). More assessee types are added as they are verified.
This tool provides an indicative computation for FY 2026-27 (Tax Year 2026-27) based on the Income-tax Act 2025 as amended by the Finance Act 2026. It is not tax, legal or investment advice, and actual liability can differ based on your complete facts. Verify against the Income Tax Department's official calculator or consult a qualified professional before acting.