Income Tax Calculator FY 2026-27 (AY 2027-28) – New vs Old Regime
Compute and compare your exact income tax liability under the revised Indian New Tax Regime (Income-tax Act, 2025) versus the Old Tax Regime. Featuring full standard deduction of ₹75,000, Section 87A full rebate up to ₹12 Lakhs (zero tax), and automated marginal relief computations.
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Tax Slabs for FY 2026-27 (AY 2027-28)
| Taxable Income Bracket | New Tax Regime (Income-tax Act, 2025) | Old Tax Regime (Individuals < 60 yrs) |
|---|---|---|
| Up to ₹2,50,000 | Nil (0%) | Nil (0%) |
| ₹2,50,001 to ₹4,00,000 | Nil (0%) | 5% |
| ₹4,00,001 to ₹5,00,000 | 5% | 5% |
| ₹5,00,001 to ₹8,00,000 | 5% | 20% |
| ₹8,00,001 to ₹10,00,000 | 10% | 20% |
| ₹10,00,001 to ₹12,00,000 | 10% | 30% |
| ₹12,00,001 to ₹16,00,000 | 15% | 30% |
| ₹16,00,001 to ₹20,00,000 | 20% | 30% |
| ₹20,00,001 to ₹24,00,000 | 25% | 30% |
| Above ₹24,00,000 | 30% | 30% |
1. Section 87A Full Rebate & Marginal Relief
Under the New Tax Regime for FY 2026-27, resident individual taxpayers with a net taxable income up to ₹12,00,000 receive a rebate of up to ₹60,000, bringing their net tax payable to zero. If your taxable income marginally exceeds ₹12 Lakhs (up to approx ₹12.70 Lakhs), marginal relief ensures that the tax payable does not exceed the income earned over ₹12 Lakhs.
2. Deductions Comparison
The Old Tax Regime permits deductions under Section 80C (up to ₹1.5L), 80D health insurance (up to ₹1L), 80CCD(1B) NPS (₹50k), and Section 24b home loan interest (₹2L). The New Tax Regime restricts individual deductions but allows an enhanced Standard Deduction of ₹75,000 and employer NPS contribution under Section 80CCD(2) up to 14% of salary.
Frequently Asked Questions (FAQ)
What is the zero tax income limit for FY 2026-27 under the New Tax Regime?
For salaried employees, total salary income up to ₹12,75,000 incurs zero tax liability. This comprises the ₹75,000 standard deduction plus the Section 87A rebate of up to ₹60,000 on taxable income up to ₹12,00,000.
How does Section 87A marginal relief protect taxpayers earning just over ₹12 Lakhs?
Without marginal relief, earning ₹12,05,000 would result in ₹60,750 of tax, leaving the taxpayer worse off than if they earned ₹12,00,000. Under statutory marginal relief, tax liability is capped at the incremental income earned above ₹12,00,000 (i.e., ₹5,000 plus applicable cess).
How is HRA exemption calculated under the Old Tax Regime?
Under Section 10(13A) read with Rule 2A, the exempt HRA is the least of three statutory limits: 1) Actual HRA received from your employer, 2) Rent paid minus 10% of basic salary + DA, and 3) 50% of basic salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro cities. The least amount is completely exempt from income tax.
Can I claim Section 80C and 80D deductions under the New Tax Regime?
No. Chapters VI-A deductions such as Section 80C (PPF, ELSS, EPF, LIC), Section 80D (health insurance), and Section 24b (self-occupied home loan interest) are not available under the New Tax Regime. They can only be claimed if you opt for the Old Tax Regime.
Is employer NPS contribution deductible under the New Regime?
Yes. Employer contributions to the National Pension System (NPS) under Section 80CCD(2) remain eligible for deduction under both the New and Old Tax Regimes, up to 14% of basic salary + DA for central/state government and private sector employees.
Can I switch between the New and Old Tax Regimes every year?
Salaried individuals and taxpayers with no business or professional income can switch between the New and Old Regimes each assessment year while filing their Income Tax Return (ITR-1 or ITR-2). Taxpayers with business or professional income can only switch once in a lifetime by filing Form 10-IEA.
Does this calculator store my personal financial data or PAN?
No. The Chipdigest Tax Calculator is 100% client-side. We strictly adhere to privacy guidelines and never ask for PAN, Aadhaar, bank details, or employer information.