Income Tax Calculator FY 2026-27 (AY 2027-28)
Calculate your tax under the new regime — slabs unchanged by Budget 2026. Salaried taxpayers pay zero tax up to ₹12.75 lakh thanks to the ₹75,000 standard deduction and the Section 87A rebate up to ₹12 lakh taxable income.
How the new-regime tax is calculated
Taxable income = salary − ₹75,000 standard deduction. Tax is applied slab-by-slab; if taxable income is up to ₹12 lakh, the 87A rebate makes the tax zero. Slightly above ₹12 lakh, marginal relief caps the tax at the excess over ₹12 lakh. Health & education cess of 4% applies on the final tax (surcharge applies from ₹50 lakh).
Tax = Σ slab amounts · 0 if Taxable ≤ 12,00,000
Marginal relief: Tax = min(Tax, Taxable − 12,00,000) · Final = Tax × 1.04
New regime slabs — FY 2026-27 (AY 2027-28), unchanged by Budget 2026
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
87A rebate → zero tax up to ₹12,00,000 taxable (₹12.75L salary). Standard deduction ₹75,000. Cess 4%; surcharge from ₹50 lakh.
Old regime slabs (for comparison)
| Taxable income | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Old regime keeps deductions (80C, 80D, HRA…), a ₹50,000 standard deduction and the 87A rebate only up to ₹5 lakh taxable income. Cess 4%.
Example tax on salary — new regime, FY 2026-27
| Gross salary | Taxable income | Tax incl. 4% cess | Effective rate |
|---|---|---|---|
| ₹12,75,000 | ₹12,00,000 | ₹0 (87A rebate) | 0% |
| ₹13,00,000 | ₹12,25,000 | ₹26,000 (marginal relief) | 2.0% |
| ₹16,00,000 | ₹15,25,000 | ₹1,13,100 | 7.1% |
| ₹20,00,000 | ₹19,25,000 | ₹1,92,400 | 9.6% |
| ₹30,00,000 | ₹29,25,000 | ₹4,75,800 | 15.9% |
Income Tax Act 2025 — what changes from 1 April 2026
The Income Tax Act 2025 replaced the 1961 Act on 1 April 2026. It introduces a single "tax year" in place of previous year/assessment year and renumbers sections (80C → Section 123, etc.) — rates, deduction amounts and rebates are identical. Budget 2026 made no changes to the slabs for FY 2026-27.
Frequently asked questions
Is income up to ₹12.75 lakh really tax-free in FY 2026-27?
Yes, for salaried taxpayers in the new regime. The ₹75,000 standard deduction brings a ₹12.75 lakh salary down to ₹12 lakh taxable income, and the Section 87A rebate wipes out tax on taxable income up to ₹12 lakh — so the final tax is zero.
Did Budget 2026 change the income tax slabs?
No. Budget 2026 left the slabs unchanged for FY 2026-27 (AY 2027-28). New regime: 0–4L nil, 4–8L 5%, 8–12L 10%, 12–16L 15%, 16–20L 20%, 20–24L 25%, above 24L 30%, plus 4% cess.
What is marginal relief above ₹12 lakh taxable income?
If your taxable income slightly exceeds ₹12 lakh, your tax is capped at the amount by which income exceeds ₹12 lakh. Example: at ₹12.25 lakh taxable, slab tax is ₹63,750 but marginal relief caps it at ₹25,000 (plus 4% cess = ₹26,000).
What changes under the Income Tax Act 2025 from April 2026?
The Income Tax Act 2025, effective 1 April 2026, replaces the 1961 Act with simpler numbering and a single "tax year" concept — for example 80C becomes Section 123. Slab rates, deduction amounts and rebates are identical; only section numbers change.
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