Income Tax Calculator (India)
Calculate Indian income tax for tax year 2026-27 (AY 2027-28) under the new or old regime, including rebate, surcharge and cess.
About the Income Tax Calculator (India)
From 1 April 2026 income tax is governed by the Income-tax Act, 2025, which uses a single 'tax year' in place of 'previous year' and 'assessment year'. Budget 2026 kept the slabs unchanged.
Under the default new regime, salaried taxpayers get a ₹75,000 standard deduction and a rebate of up to ₹60,000, so there's no tax on taxable income up to ₹12 lakh (₹12.75 lakh of salary). The old regime keeps deductions like 80C, 80D and HRA but has higher rates.
Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%), ₹2 crore (25%) and, in the old regime only, ₹5 crore (37%), with marginal relief. A 4% health and education cess is added on top.
The formula
Tax = (slab tax − rebate) × (1 + surcharge) × 1.04
Income tax slabs, tax year 2026-27
| Income | New regime | Old regime (below 60) |
|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil |
| ₹2.5–4 lakh | Nil | 5% |
| ₹4–5 lakh | 5% | 5% |
| ₹5–8 lakh | 5% | 20% |
| ₹8–10 lakh | 10% | 20% |
| ₹10–12 lakh | 10% | 30% |
| ₹12–16 lakh | 15% | 30% |
| ₹16–20 lakh | 20% | 30% |
| ₹20–24 lakh | 25% | 30% |
| Above ₹24 lakh | 30% | 30% |
Worked example
Example: Total tax (incl. cess) = ₹1,92,400
- Inputs: Gross yearly income: ₹20,00,000; Tax regime: New (default); Income includes salary or pension: Yes; Deductions (old regime: 80C, 80D, HRA, home-loan interest…): ₹2,20,000; Age: Below 60.
- Formula: Tax = (slab tax − rebate) × (1 + surcharge) × 1.04
- Result: Total tax (incl. cess) = ₹1,92,400
- Tax on slabs: ₹1,85,000
- Health & education cess (4%): ₹7,400
Things to keep in mind
- Capital gains taxed at special rates and the rebate's interaction with them aren't modelled here; use the capital gains calculator.
Questions people ask
Which regime should I choose?
Compare both: the old regime wins only if your deductions are large. Use the old vs new regime calculator.
Is there tax on ₹12 lakh income?
Not under the new regime: the rebate covers the tax up to ₹12 lakh of taxable income.