Income Tax Calculator India 2026-27: New vs Old Tax Regime
March 2026 · 8 min read
Quick Answer
Under the new tax regime 2026, income up to ₹3 lakh is tax-free. The basic exemption is ₹3L, and a standard deduction of ₹75,000 is available. On ₹10 lakh income, new regime tax is approximately ₹54,600 vs ₹1,17,000 in old regime.
New vs Old Tax Regime Comparison 2026
Choosing the right regime can save you significant money. Here is the tax comparison at different income levels.
| Annual Income | New Regime Tax | Old Regime Tax | Better Choice |
|---|---|---|---|
| ₹5 Lakhs | ₹0 | ₹12,500 | New Regime |
| ₹7 Lakhs | ₹0 (87A rebate) | ₹25,000 | New Regime |
| ₹10 Lakhs | ₹54,600 | ₹1,17,000* | Depends on deductions |
| ₹12 Lakhs | ₹83,200 | ₹1,40,400* | Old if deductions over Rs 2L |
| ₹15 Lakhs | ₹1,45,600 | ₹2,10,600* | Old if deductions over Rs 3L |
| ₹20 Lakhs | ₹2,96,400 | ₹3,37,200* | Old if deductions over Rs 3.75L |
Key Deductions Available in Old Tax Regime
The old tax regime allows multiple deductions that can significantly reduce your taxable income.
| Section | Deduction | Maximum Amount |
|---|---|---|
| 80C | ELSS, PPF, EPF, LIC, home loan principal | ₹1,50,000 |
| 80D | Health insurance premium | ₹25,000 (₹50,000 for senior) |
| 24(b) | Home loan interest (self-occupied) | ₹2,00,000 |
| 80CCD(1B) | NPS additional contribution | ₹50,000 |
| HRA | House rent allowance | Actual HRA or formula |
| LTA | Leave travel allowance | Actual travel cost |
Calculate Your Tax Free
Use our free tax calculator — select ₹ Indian Rupee for accurate Indian tax calculations.
Calculate Tax Free →Frequently Asked Questions
What are the income tax slabs for FY 2026-27?
New regime: 0% up to ₹3L, 5% for ₹3-7L, 10% for ₹7-10L, 15% for ₹10-12L, 20% for ₹12-15L, 30% above ₹15L. Old regime: 0% up to ₹2.5L, 5% for ₹2.5-5L, 20% for ₹5-10L, 30% above ₹10L.
Which is better — new or old tax regime?
The new regime is better if you have fewer deductions. The old regime is better if you have high deductions like HRA, 80C investments, home loan interest and NPS. If total deductions exceed ₹3.75 lakh the old regime typically saves more tax.
What is the standard deduction for salaried employees in 2026?
The standard deduction for salaried employees is ₹75,000 under the new tax regime for FY 2026-27, increased from ₹50,000 in previous years.
What is Section 87A rebate?
Section 87A provides a tax rebate of up to ₹25,000 under the new regime for individuals with taxable income up to ₹7 lakh. This effectively makes income up to ₹7 lakh tax-free under the new regime.
How do I calculate TDS on salary?
TDS on salary is calculated by your employer based on your estimated annual income and deductions declared in Form 12BB. It is deducted monthly as annual tax liability divided by 12 months.