Income Tax Calculator FY 2026-27: Income Tax for 2026-27 (Tax Year 2027-28) in India

In Union Budget 2026, Finance Minister Nirmala Sitharaman did not make any changes in income-tax slabs and standard deductions under the new tax regime as well as under the old tax regime. According to the current income tax laws, a salaried individual can claim standard deduction according to the tax regime chosen by him. While under the new tax regime, a salaried individual can claim a standard deduction of INR 75,000 and INR 50,000 under the old tax regime.

This means you will continue to pay the income tax as per your slab which you have been paying currently. It must be noted that the new Income Tax Act 2025 is coming into effect from April 1, 2026 but this will have no impact on your tax liabilities.

Last year, the Finance Minister had announced significant changes to the new income tax regime. As per the current income tax laws, people do not have to pay income tax on annual earnings up to Rs 12,00,000 under the new tax regime. For salaried workers choosing this new system, income up to Rs 12,75,000 is tax-free. The Section 87A rebate was raised to Rs 60,000 under the new tax regime.


Standard deduction is one of the few tax deductions which is available for salaried and pensioners under the new tax regime. This standard deduction of Rs 75,000 is given to all salaried employees under the new tax regime irrespective of their salary level and helps in bringing down their total taxable income.

Under the new tax regime, apart from standard deduction, a salaried individual can claim tax deduction on employer contribution in NPS. This deduction is claimed under Section 80CCD(2) on a maximum of 14% of your basic salary.

Gross taxable income	Current income tax payable remains same as last tax year
Rs 12,75,000	0
Rs 15,00,000	Rs 97,500
Rs 16,00,000	Rs 1,13,100
Rs 20,00,000	Rs 1,92,400
Rs 24,75,000	Rs 3,12,000
Rs 25,00,000	Rs 3,19,800

Source: EY India

Income Tax Slabs Under New Tax Regime for Tax Year 2026–27

Income tax slabs (In Rs)	Income Tax rate in %
Up to 4,00,000	0
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%

Source: EY India

The income tax calculator allows an individual to compare the income tax liability in two financial years. Currently, the income tax calculator shows income tax liability in the upcoming tax year, 2026-27 (ending on March 31, 2027), and the current tax year, 2025-26 (between April 1, 2025 and March 31, 2026). The income tax calculator also compares the income tax liability in the new tax regime and in the old tax regime for the two financial years.

The new tax regime is the default tax regime. So if an individual does not inform his/her employer of the preferred choice of tax regime, then TDS on salary will be deducted as per income tax slabs applicable under the new tax regime.

For Those Under The Old Tax Regime

People choosing the old tax system must claim at least Rs.8.5 lakh in deductions and exemptions each tax year. This total includes a standard deduction of Rs.50,000. This deduction is required to ensure that the tax paid is the same under both the old and the new tax systems.

Gross taxable income	Income tax payable under old tax regime	Income tax under new tax regime	Deductions to pay same tax in old tax regime
Rs 12,75,000	Nil	Nil	Rs 7,75,000
Rs 15,00,000	Rs 97,500	Rs 97,500	Rs 5,93,750
Rs 16,00,000	Rs 1,13,100	Rs 1,13,100	Rs 6,18,750
Rs 20,00,000	Rs 1,92,400	Rs 1,92,400	Rs 7,58,333
Rs 24,75,000	Rs 3,12,000	Rs 3,12,000	Rs 8,50,000
Rs 25,00,000	Rs 3,19,800	Rs 3,19,800	Rs 8,50,000

Source: EY India

However, a taxpayer can choose any tax regime while filing ITR. The option of choosing any tax regime while filing ITR is available if tax return is filed before expiry of ITR filing deadline.

The deadline for filing the ITR for individuals has been kept the same; some categories of taxpayers have got an extension in ITR filing due date.

FAQs:

What is the amount of standard deduction available under the new tax regime?

Standard deduction of Rs 75,000 is available to taxpayers having income from salary and pension income under the new tax regime.

Can a family pensioner claim standard deduction under the new tax regime?

Yes, a family pensioner can claim standard deduction of Rs 25,000 under the new tax regime.

What are the deductions that can be claimed under the new tax regime?

Currently, an individual can claim deduction under Section 80CCD (2) on employer’s contribution to NPS account for up to 14% of basic salary. One can also claim standard deduction of Rs 75,000 from salary/pension income. This remains unchanged in Budget 2026.