Is income up to ₹12 lakh really tax-free in the new regime?

Yes, for resident individuals. Tax is computed on the slabs, then the Section 87A rebate (up to ₹60,000) wipes it out as long as taxable income stays within ₹12 lakh. With the ₹75,000 standard deduction, a salaried person earning up to ₹12.75 lakh pays zero tax. Capital gains taxed at special rates don’t get this rebate.

What is marginal relief above ₹12 lakh?

Without it, earning ₹1 more than the rebate limit would trigger the full slab tax. Marginal relief caps your tax at the amount your taxable income exceeds ₹12 lakh — at ₹12.10 lakh taxable you pay ₹10,000 (plus cess), not the ₹61,500 the slabs alone would produce. The calculator applies this automatically.

Which regime should I choose?

The new regime wins for most people since Budget 2025 boosted its slabs and rebate. The old regime only catches up if you claim large deductions — typically above ₹4–5 lakh combined (80C, 80D, home-loan interest, HRA). Enter your deductions and the tool shows both regimes side by side with the cheaper one highlighted.

What are the FY 2026-27 new regime slabs?

Nil up to ₹4 lakh, 5% on ₹4–8 lakh, 10% on ₹8–12 lakh, 15% on ₹12–16 lakh, 20% on ₹16–20 lakh, 25% on ₹20–24 lakh and 30% above ₹24 lakh. Budget 2026 left these unchanged from FY 2025-26. Health and education cess of 4% applies on the tax.

How does the standard deduction differ between regimes?

Salaried employees and pensioners get ₹75,000 off in the new regime but only ₹50,000 in the old regime. It applies automatically to salary income — switch the toggle to “Other income” if you’re self-employed, since business income doesn’t get it.

When does surcharge apply?

On income tax (not income) once total income crosses ₹50 lakh: 10% up to ₹1 crore, 15% up to ₹2 crore, then 25% — the new regime caps surcharge at 25% while the old regime can reach 37%. Marginal relief softens each jump, and the calculator models it.

Is my income data uploaded anywhere?

No. The entire calculation is JavaScript running in your browser — nothing is sent to a server, stored or logged. It also keeps working offline once loaded.

Income Tax Calculator India (FY 2026-27)

New regime vs old regime side by side — Section 87A rebate, marginal relief, surcharge and cess, all computed in your browser.

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Annual gross income (₹)

Old-regime deductions (80C, 80D, HRA…)

Income type

FY 2026-27 (AY 2027-28) slabs for resident individuals below 60. New regime: standard deduction ₹75,000 and zero tax up to ₹12 lakh taxable income via the Section 87A rebate (with marginal relief just above it). Old-regime senior-citizen slabs differ. Estimates only — not tax advice.

New regime vs old regime — settled in one look

Enter your annual income once and the calculator works both regimes for FY 2026-27 (AY 2027-28) side by side: slab tax, the Section 87A rebate, marginal relief, surcharge and the 4% health and education cess. The cheaper regime gets a green badge, and the difference is shown in rupees — so the “which regime?” question takes seconds, not a spreadsheet.

Zero tax up to ₹12.75 lakh — here’s the math

A salaried income of ₹12,75,000 minus the ₹75,000 standard deduction leaves ₹12 lakh taxable. The slabs produce ₹60,000 of tax — and the Section 87A rebate cancels exactly that. Just above the line, marginal relief keeps things fair: at ₹12.85 lakh gross you pay about ₹10,400 total, not ₹64,000. The calculator handles both automatically.

Worked examples (salaried, FY 2026-27)

Gross income	New regime	Old regime (₹1.5L deductions)	Winner
₹8,00,000	₹0	₹33,800	New
₹12,75,000	₹0	₹1,40,400	New
₹16,00,000	₹1,13,100	₹2,41,800	New
₹25,00,000	₹3,19,800	₹5,22,600	New

With only ₹1.5 lakh of deductions the old regime never catches up. It starts competing when deductions stack well past ₹4 lakh — think maxed 80C, NPS, medical insurance, HRA and home-loan interest together. Type your own deduction total into the tool to find your personal crossover.

Assumptions worth knowing

Slabs are for resident individuals below 60; the old regime’s senior-citizen basic exemption (₹3 lakh / ₹5 lakh) differs. The new regime is the default — opting for the old one requires choosing it when filing (Form 10-IEA for business income). Agricultural income aggregation, capital gains at special rates and TDS timing are outside this tool’s scope. Treat results as estimates, not tax advice. Calculating GST instead? Use the GST calculator, or the US paycheck calculator for American salaries.

Frequently Asked Questions

Is income up to ₹12 lakh really tax-free in the new regime?
Yes, for resident individuals. Tax is computed on the slabs, then the Section 87A rebate (up to ₹60,000) wipes it out as long as taxable income stays within ₹12 lakh. With the ₹75,000 standard deduction, a salaried person earning up to ₹12.75 lakh pays zero tax. Capital gains taxed at special rates don’t get this rebate.
What is marginal relief above ₹12 lakh?
Without it, earning ₹1 more than the rebate limit would trigger the full slab tax. Marginal relief caps your tax at the amount your taxable income exceeds ₹12 lakh — at ₹12.10 lakh taxable you pay ₹10,000 (plus cess), not the ₹61,500 the slabs alone would produce. The calculator applies this automatically.
Which regime should I choose?
The new regime wins for most people since Budget 2025 boosted its slabs and rebate. The old regime only catches up if you claim large deductions — typically above ₹4–5 lakh combined (80C, 80D, home-loan interest, HRA). Enter your deductions and the tool shows both regimes side by side with the cheaper one highlighted.
What are the FY 2026-27 new regime slabs?
Nil up to ₹4 lakh, 5% on ₹4–8 lakh, 10% on ₹8–12 lakh, 15% on ₹12–16 lakh, 20% on ₹16–20 lakh, 25% on ₹20–24 lakh and 30% above ₹24 lakh. Budget 2026 left these unchanged from FY 2025-26. Health and education cess of 4% applies on the tax.
How does the standard deduction differ between regimes?
Salaried employees and pensioners get ₹75,000 off in the new regime but only ₹50,000 in the old regime. It applies automatically to salary income — switch the toggle to “Other income” if you’re self-employed, since business income doesn’t get it.
When does surcharge apply?
On income tax (not income) once total income crosses ₹50 lakh: 10% up to ₹1 crore, 15% up to ₹2 crore, then 25% — the new regime caps surcharge at 25% while the old regime can reach 37%. Marginal relief softens each jump, and the calculator models it.
Is my income data uploaded anywhere?
No. The entire calculation is JavaScript running in your browser — nothing is sent to a server, stored or logged. It also keeps working offline once loaded.