Use this free online Income Tax Calculator to calculate your income tax liability for FY 2026-27 (AY 2027-28) and FY 2025-26 (AY 2026-27). Compare New Tax Regime vs Old Tax Regime, check updated income tax slabs, and plan your tax savings using deductions under Section 80C, 80D, HRA, and more.
Income Tax Calculator
Calculate your income tax for FY 2025-26 & FY 2026-27 • Compare New vs Old Tax Regime • Free Online Tool
| Income Slab | Tax Rate | Tax Amount |
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1. What is an Income Tax Calculator?
An Income Tax Calculator is a free online tool that helps you calculate your total income tax liability based on your annual income, applicable deductions, and the tax regime you choose. Whether you are a salaried employee, self-employed individual, or senior citizen, an income tax calculator saves time and eliminates manual errors.
Key benefits of using an online income tax calculator:
- Instantly calculates your tax liability for FY 2026-27 and FY 2025-26
- Compares New Tax Regime vs Old Tax Regime side-by-side
- Helps plan tax-saving investments under Section 80C, 80D, and HRA
- Accurate results based on latest income tax slabs announced in Union Budget
- Available 24/7 — free to use with no registration required
Whether you are asking “how to calculate income tax on salary”, “what is my income tax for FY 2026-27”, or “income tax calculator for AY 2027-28”, this comprehensive guide covers everything you need to know.
2. How to Use the Income Tax Calculator Online – Step-by-Step
Using the Finance and Tax Guide Income Tax Calculator is simple and takes less than 2 minutes:
- Enter your Gross Annual Income (salary, business income, or other sources)
- Select your Age Group: Below 60, Senior Citizen (60-79), or Super Senior Citizen (80+)
- Choose your preferred Tax Regime: New Tax Regime or Old Tax Regime
- Enter applicable deductions (80C, 80D, HRA, etc.) if opting for Old Regime
- Click ‘Calculate’ to see your net taxable income and total tax payable
- Compare both regimes to decide which saves you more tax
Pro Tip: Always compare both regimes before filing your ITR. The new tax regime has lower slab rates but does not allow most deductions, while the old tax regime allows deductions under 80C, 80D, HRA, and more.
3. Income Tax Slabs for FY 2026-27 (AY 2027-28)
The income tax slabs for FY 2026-27 (Assessment Year 2027-28) have been updated following the Union Budget 2026. Below are the applicable tax slabs under both regimes:
A. New Tax Regime – Income Tax Slabs FY 2026-27
The New Tax Regime (default regime) offers lower tax rates but does not allow major deductions except the standard deduction of Rs. 75,000 for salaried individuals.
| Income Tax Slab (Annual Income) | Tax Rate (New Regime FY 2026-27) |
| Up to Rs. 4,00,000 | Nil (No Tax) |
| Rs. 4,00,001 – Rs. 8,00,000 | 5% |
| Rs. 8,00,001 – Rs. 12,00,000 | 10% |
| Rs. 12,00,001 – Rs. 16,00,000 | 15% |
| Rs. 16,00,001 – Rs. 20,00,000 | 20% |
| Rs. 20,00,001 – Rs. 24,00,000 | 25% |
| Above Rs. 24,00,000 | 30% |
Note: Under the new tax regime, income up to Rs. 12,00,000 is effectively tax-free for salaried employees after accounting for the standard deduction of Rs. 75,000 and the rebate under Section 87A (up to Rs. 60,000).
B. Old Tax Regime – Income Tax Slabs FY 2026-27
| Income Tax Slab (Old Regime) | Tax Rate – Below 60 Yrs | Tax Rate – Senior Citizen (60-79) | Tax Rate – Super Senior (80+) |
| Up to Rs. 2,50,000 | Nil | Nil | Nil |
| Rs. 2,50,001 – Rs. 3,00,000 | 5% | Nil | Nil |
| Rs. 3,00,001 – Rs. 5,00,000 | 5% | 5% | Nil |
| Rs. 5,00,001 – Rs. 10,00,000 | 20% | 20% | 20% |
| Above Rs. 10,00,000 | 30% | 30% | 30% |
Surcharge on Income Tax FY 2026-27
| Net Taxable Income | Surcharge Rate |
| Up to Rs. 50 Lakh | Nil |
| Rs. 50 Lakh – Rs. 1 Crore | 10% |
| Rs. 1 Crore – Rs. 2 Crore | 15% |
| Rs. 2 Crore – Rs. 5 Crore | 25% |
| Above Rs. 5 Crore | 25% (capped under new regime) |
Health and Education Cess: 4% is applicable on (Income Tax + Surcharge) for all taxpayers.
4. New Tax Regime vs Old Tax Regime – Which is Better?
One of the most searched questions by Indian taxpayers is: “New tax regime vs old tax regime – which is better for me?” The answer depends on your income level and available deductions.
| Feature | New Tax Regime | Old Tax Regime |
| Default Regime | Yes (from FY 2023-24) | Optional (opt-in required) |
| Standard Deduction | Rs. 75,000 (salaried) | Rs. 50,000 (salaried) |
| Section 80C Deduction | Not Allowed | Up to Rs. 1,50,000 |
| Section 80D (Health Insurance) | Not Allowed | Up to Rs. 25,000-50,000 |
| HRA Exemption | Not Allowed | Allowed |
| Section 24(b) Home Loan Interest | Not Allowed | Up to Rs. 2,00,000 |
| NPS Deduction (80CCD) | Only employer contribution | Up to Rs. 50,000 extra |
| Tax Rates | Lower slab rates | Higher slab rates |
| Best For | Low deductions / Higher income | High deductions / Medium income |
General Rule of Thumb: If your total deductions (80C + 80D + HRA + home loan, etc.) exceed Rs. 3.75 lakh, the old tax regime may save you more tax. Otherwise, the new tax regime is typically more beneficial.
5. How to Calculate Income Tax – Step-by-Step Formula
Here is the step-by-step method to manually calculate your income tax for FY 2026-27:
Step 1: Calculate Gross Total Income
Add income from all five heads:
- Salary Income (after standard deduction of Rs. 75,000 under new regime)
- Income from House Property (rental income)
- Profits and Gains from Business or Profession
- Capital Gains (Short-Term & Long-Term)
- Income from Other Sources (interest, dividends, etc.)
Step 2: Subtract Deductions (Old Regime Only)
- Section 80C: Up to Rs. 1,50,000 (PPF, ELSS, LIC, NSC, etc.)
- Section 80D: Health insurance premiums
- Section 80CCD(1B): NPS additional contribution – Rs. 50,000
- HRA Exemption: For rent paid
- Section 24(b): Home loan interest up to Rs. 2,00,000
Step 3: Arrive at Net Taxable Income
Net Taxable Income = Gross Total Income – Deductions
Step 4: Apply Income Tax Slabs
Apply the applicable tax rate on each slab of your net taxable income.
Step 5: Add Surcharge (if applicable) and 4% Cess
Total Tax Payable = (Income Tax + Surcharge) + 4% Health & Education Cess
Step 6: Subtract TDS and Advance Tax
Net Tax Payable = Total Tax Payable – TDS Deducted – Advance Tax Paid
Income Tax Calculation Example (FY 2026-27 – New Regime):
Gross Salary: Rs. 12,00,000 | Standard Deduction: Rs. 75,000 | Net Taxable Income: Rs. 11,25,000
| Income Slab | Rate | Tax Amount |
| Up to Rs. 4,00,000 | Nil | Rs. 0 |
| Rs. 4,00,001 – Rs. 8,00,000 (Rs. 4 Lakh) | 5% | Rs. 20,000 |
| Rs. 8,00,001 – Rs. 11,25,000 (Rs. 3.25 Lakh) | 10% | Rs. 32,500 |
| Total Income Tax | Rs. 52,500 | |
| Add: 4% Health & Education Cess | Rs. 2,100 | |
| Total Tax Payable | Rs. 54,600 |
6. Income Tax Deductions – Section 80C, 80D, HRA & More
If you opt for the old tax regime, the following deductions help you reduce your taxable income significantly:
| Deduction Section | Eligible Investment / Expense | Maximum Limit |
| Section 80C | PPF, ELSS, LIC, NSC, EPF, Home Loan Principal, Tuition Fees | Rs. 1,50,000 |
| Section 80CCD(1B) | NPS (National Pension Scheme) – Self Contribution | Rs. 50,000 |
| Section 80D | Health Insurance Premium (Self & Family) | Rs. 25,000 – Rs. 1,00,000 |
| Section 80E | Interest on Education Loan | No limit (for 8 years) |
| Section 24(b) | Interest on Home Loan (Self-occupied property) | Rs. 2,00,000 |
| Section 80G | Donations to Charitable Organizations | 50% or 100% of donation |
| Section 80TTA | Interest on Savings Bank Account | Rs. 10,000 |
| Section 80TTB | Interest income for Senior Citizens | Rs. 50,000 |
| HRA Exemption | House Rent Allowance for salaried employees | Actual HRA or formula |
| LTA (Leave Travel Allowance) | Travel expenses within India | Actual expenses (twice in 4 years) |
7. Income Tax Calculator for Salaried Employees
For salaried individuals, the income tax calculation involves considering your Cost to Company (CTC), in-hand salary, and all applicable allowances and deductions.
Key Components of Salary for Tax Calculation:
- Basic Salary – Fully taxable
- HRA (House Rent Allowance) – Partially exempt if you live in a rented house
- LTA (Leave Travel Allowance) – Exempt for actual travel expenses
- Special Allowance – Fully taxable
- Bonus – Fully taxable in the year of receipt
- PF Contribution by Employer – Exempt up to 12% of Basic Salary
Important for Salaried Employees: Always submit Form 12BB to your employer to declare your investments and deductions. This helps your employer accurately compute TDS (Tax Deducted at Source) from your salary.
8. Income Tax Calculator for Senior Citizens (FY 2026-27)
Senior citizens (aged 60-79 years) and super senior citizens (aged 80+ years) enjoy higher basic exemption limits under the old tax regime:
- Senior Citizens (60-79 years): Basic exemption – Rs. 3,00,000
- Super Senior Citizens (80+ years): Basic exemption – Rs. 5,00,000
- Section 80TTB: Interest income deduction up to Rs. 50,000
- Section 80D: Health insurance premium deduction up to Rs. 50,000
- No advance tax obligation if no business income (pay only self-assessment tax)
Note for Senior Citizens: Under the new tax regime, all age groups (below 60, 60-79, and 80+) have the same tax slabs. The enhanced basic exemption limit for senior citizens is only available under the old tax regime.
9. TDS (Tax Deducted at Source) – What You Need to Know
TDS is the tax deducted by your employer or other payers before making payments to you. Understanding TDS is crucial for accurate income tax calculation:
| Income Type | TDS Section | TDS Rate |
| Salary Income | Section 192 | As per applicable slab rates |
| Bank Interest (above Rs. 40,000 / Rs. 50,000 for Sr. Citizen) | Section 194A | 10% |
| Dividend Income (above Rs. 5,000) | Section 194 | 10% |
| Professional / Technical Fees (above Rs. 30,000) | Section 194J | 10% / 2% |
| Rent of Property (above Rs. 2,40,000 per year) | Section 194I | 10% (building) |
| Sale of Property (above Rs. 50 Lakh) | Section 194IA | 1% |
How to Check TDS: Login to the Income Tax e-Filing portal at incometax.gov.in and check Form 26AS or the Annual Information Statement (AIS) to verify all TDS deducted against your PAN number.
10. Frequently Asked Questions (FAQs)
Which income tax calculator is best for FY 2026-27?
The Finance and Tax Guide income tax calculator is updated for FY 2026-27 and FY 2025-26. It allows you to compare both new and old tax regimes, includes all deductions, and provides accurate results instantly.
Is income up to Rs. 12 lakh tax-free in FY 2026-27?
Yes, under the new tax regime, salaried employees with gross income up to Rs. 12,75,000 effectively pay zero tax — due to the standard deduction of Rs. 75,000 and rebate under Section 87A (up to Rs. 60,000 tax rebate for income up to Rs. 12,00,000 net taxable income).
How do I calculate income tax on salary online?
Use our free income tax calculator: Enter your gross salary, select your age group and preferred tax regime, add applicable deductions, and click Calculate. The tool instantly shows your total tax payable for FY 2026-27 (AY 2027-28).
What is the difference between FY 2026-27 and AY 2027-28?
FY (Financial Year) 2026-27 refers to the period from April 1, 2026 to March 31, 2027 – the year in which you earn income. AY (Assessment Year) 2027-28 is the following year (April 1, 2027 to March 31, 2028) in which you file your ITR (Income Tax Return) for the income earned in FY 2026-27.
Can I switch from new tax regime to old tax regime?
Yes. Salaried employees can switch between regimes every year while filing their ITR. However, individuals with business or professional income can switch only once (from new to old regime). The new tax regime is the default regime, so you need to actively opt for the old regime if you wish to claim deductions.
What is Form 16 and how is it related to income tax?
Form 16 is a TDS certificate issued by your employer. It contains details of your salary, TDS deducted, and tax deposited with the government. It is a key document needed while filing your ITR. Part A of Form 16 shows TDS details and Part B shows a detailed salary breakup.
How to save income tax legally in India?
You can legally reduce your tax outgo by maximizing deductions under the old tax regime: invest Rs. 1.5 lakh in 80C instruments (PPF, ELSS, LIC), contribute to NPS for additional Rs. 50,000 deduction, pay health insurance premiums under 80D, claim HRA if you live on rent, and claim home loan interest under Section 24(b).
11. Important Income Tax Due Dates for FY 2026-27
| Date | Compliance / Event |
| June 15, 2026 | 1st Instalment of Advance Tax for FY 2026-27 – 15% of estimated tax |
| July 31, 2026 | ITR Filing Deadline for individuals (non-audit cases) for FY 2025-26 |
| September 15, 2026 | 2nd Instalment of Advance Tax – 45% of estimated tax |
| October 31, 2026 | ITR Filing for audit cases (FY 2025-26) |
| December 15, 2026 | 3rd Instalment of Advance Tax – 75% of estimated tax |
| December 31, 2026 | Belated / Revised ITR filing for FY 2025-26 |
| March 15, 2027 | 4th & Final Instalment of Advance Tax – 100% of estimated tax |
12. Conclusion – Calculate Your Income Tax Online for FY 2026-27
Using an income tax calculator online is the smartest way to plan your finances and ensure compliance with tax laws. Whether you are a salaried employee, freelancer, or business owner, knowing your exact tax liability helps you make informed investment decisions and avoid any last-minute surprises at the time of filing your Income Tax Return (ITR).
Key Takeaways:
- The new tax regime is the default regime from FY 2023-24 onwards with lower slab rates
- Income up to Rs. 12,75,000 is effectively tax-free for salaried employees under the new regime
- The old tax regime is beneficial if your total deductions exceed approximately Rs. 3.75 lakh
- Always file your ITR on time to avoid penalties and interest
- Use Form 26AS and AIS to verify TDS and advance tax paid
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