Total tax liability
₹0
Estimated tax including 4% cess for FY 2026-27 (AY 2027-28), new regime (default).
Income Tax Calculator
Estimate your income tax under the new and old regimes, with slab-wise working, standard deduction, section 87A rebate, surcharge, and 4% cess.
Under 45 seconds
Updated 22 Aug 2026
12,450people used this
Results dashboard
Taxable income
₹11,25,000
Gross ₹12,00,000 less deductions of ₹75,000.
Income tax after rebate
₹0
Slab tax ₹52,500 less section 87A rebate ₹52,500.
Effective tax rate
0%
About ₹0 a month of tax on your gross income.
An income tax calculator estimates your tax liability for a financial year from your income and deductions. This one applies the slab rates configured for FY 2026-27 (AY 2027-28) and earlier years, including the standard deduction, section 87A rebate with marginal relief, surcharge, and 4% health and education cess, and shows the new and old regimes side by side.
Visual breakdown
A visual view of your calculation.
Interactive charts arrive here soon.
Slab-wise working — FY 2026-27, New regime (default)
Tax is charged at each slab rate only on the part of taxable income that falls inside that slab.
| Income slab | Rate | Income in slab | Tax |
|---|---|---|---|
| Up to ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹3,25,000 | ₹32,500 |
| ₹12,00,000 – ₹16,00,000 | 15% | ₹0 | ₹0 |
| ₹16,00,000 – ₹20,00,000 | 20% | ₹0 | ₹0 |
| ₹20,00,000 – ₹24,00,000 | 25% | ₹0 | ₹0 |
| Above ₹24,00,000 | 30% | ₹0 | ₹0 |
| Tax on taxable income | — | ₹11,25,000 | ₹52,500 |
| Less: section 87A rebate | — | — | − ₹52,500 |
| Surcharge | 0% | — | ₹0 |
| Health and education cess | 4% | — | ₹0 |
| Total tax liability | — | — | ₹0 |
Smart Insights
Generated from the numbers you entered — no guesswork.
- On a gross income of ₹12,00,000, the estimated tax for FY 2026-27 under the new regime (default) is ₹0 — an effective rate of 0%.
- A section 87A rebate of ₹52,500 applies because taxable income is within ₹12,00,000.
- The new regime is cheaper by about ₹1,17,000 for these inputs.
- The new regime ignores most 80C/80D-style deductions, so only the standard deduction reduced your taxable income.
- Budget 2026 retained the existing slab structure under both regimes for FY 2026-27 (AY 2027-28). Figures are estimates for a resident individual below 60 and exclude capital gains taxed at special rates.
How does the Income Tax Calculator work?
Each step the calculator runs, in plain language.
- 1
1. Add up your income
Salary and other slab-rate income (interest, rent, freelance) are added to give gross total income. Capital gains taxed at special rates are computed separately and are not covered here.
- 2
2. Subtract deductions
Salaried taxpayers get a standard deduction in both regimes, at the amount configured for the year. Chapter VI-A claims such as 80C and 80D reduce income only under the old regime.
- 3
3. Apply the slabs
Each slab rate applies only to the income falling inside that slab, so a higher slab never re-taxes income already taxed at a lower rate.
- 4
4. Rebate, surcharge, and cess
The section 87A rebate can reduce tax to nil when taxable income is within the threshold for your regime. Surcharge applies at high income levels, and health and education cess is then charged on tax plus surcharge.
- 5
5. Where the rules come from
The slabs and thresholds used here are configuration, verified on 2026-08-22 for FY 2026-27. Always confirm against the Income Tax Department before filing, since rules can change mid-year.
Income Tax Calculator formula
The exact maths behind every number on this page.
Taxable income = Gross income − Standard deduction − Eligible deductions • Tax = Σ (income in slab × slab rate) − 87A rebate + surcharge + cess
- Gross income
- Salary income plus other income taxed at slab rates
- Standard deduction
- Flat deduction for salaried taxpayers and pensioners, as configured for the selected regime
- Eligible deductions
- 80C, 80D, HRA, and similar claims — available in the old regime only
- Slab rate
- Marginal rate applied to the part of income inside each slab
- 87A rebate
- Rebate that removes tax entirely when taxable income is within the configured threshold
- Cess
- Health and education cess of 4% on tax plus surcharge
Slabs, standard deduction, rebate, surcharge bands, and cess are stored as configuration per financial year, so the calculator can be updated for a new Budget without changing the calculation logic.
Income Tax Calculator calculation example
A salaried taxpayer with ₹12,00,000 salary income in FY 2026-27, comparing both regimes with ₹1,50,000 of 80C deductions.
- 1Gross income₹12,00,000
- 2New regime: standard deduction− ₹75,000 → taxable ₹11,25,000
- 3New regime: slab tax5% on ₹4L = ₹20,000 + 10% on ₹3.25L = ₹32,500 → ₹52,500
- 4New regime: 87A rebateTaxable income is within ₹12,00,000 → rebate ₹52,500
- 5New regime: total tax₹0
- 6Old regime: deductions− ₹50,000 standard − ₹1,50,000 80C → taxable ₹10,00,000
- 7Old regime: slab tax₹12,500 + ₹1,00,000 = ₹1,12,500
- 8Old regime: total with 4% cess1,12,500 × 1.04 = ₹1,17,000
For this profile the new regime results in no tax, against about ₹1,17,000 under the old regime — so the deductions are not large enough to make the old regime worthwhile.
Important assumptions
What this calculation includes, and what it leaves out.
- You are treated as a resident individual below 60, with income taxed at normal slab rates.
- The new regime applies its standard deduction automatically; deductions you enter are applied only where the selected regime allows them.
- Section 87A rebate, marginal relief, surcharge bands, and 4% health and education cess follow the rules configured for the financial year you select.
- Capital gains at special rates, business or presumptive income, relief under section 89, foreign income, and senior-citizen or non-resident rules are out of scope.
- Slab rules and thresholds change with each Finance Act, so verify the current year's rules before relying on the figure for filing.
Sources we follow for figures that change
- Income Tax Department, Government of India — official slab rates, rebate, surcharge, and cess rules
- Finance Act and Budget documents — changes to slabs and thresholds for each financial year
Benefits
Why people use this calculator before signing a loan.
Both regimes, one screen
See the estimated liability under the new and old regimes together, so the choice is based on numbers.
Transparent slab working
The table shows income in each slab, rebate, surcharge, and cess separately instead of a single opaque total.
Multiple financial years
Switch years to check an earlier position, useful for revised returns and past comparisons.
Maintainable rules
Tax rules sit in configuration, so slabs can be updated after a Budget without altering the calculator.
Financial tips
Practical guidance to act on your result.
- Compare both regimes before choosing: the old regime only wins when your deductions and exemptions are large.
- Under the old regime, HRA and home-loan interest often matter more than 80C in deciding the outcome.
- Just above the rebate threshold, marginal relief caps your tax at the income earned above it — this calculator applies that relief automatically.
- Declare investments with your employer early so TDS is spread evenly instead of being deducted heavily in March.
Frequently asked questions
Short, direct answers to the questions we hear most.
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Disclaimer
CalPaisa calculators are for general information and planning only. Results are estimates based on the values you enter and standard formulas, and may differ from the figures your bank, employer, or tax authority applies. Nothing here is investment, tax, or legal advice. Please confirm important decisions with a qualified professional. Read our financial disclaimer, learn how CalPaisa works, or tell us about a calculation you think is wrong.