Income Tax Calculator (India, New Regime)

The calculator opens with a gross salary of ₹15,00,000 under the new regime for tax year 2026-27. The ₹75,000 standard deduction brings taxable income to ₹14,25,000, and the tax is built up slab by slab:

That is ₹93,750 of tax plus ₹3,750 cess, a total of ₹97,500, or an effective rate of 6.5% on your gross pay. The monthly take-home of ₹1,16,875 is simply gross pay minus tax, divided by 12. Your actual credit will be lower after your PF contribution and other payroll deductions.

If taxable income is ₹12 lakh or less, the rebate under section 156 (formerly 87A) cancels the tax, up to ₹60,000. For a salaried person that means a gross salary of up to ₹12,75,000 pays nothing.

Just above that line, marginal relief caps the tax (before cess) at the amount by which taxable income exceeds ₹12 lakh. Take a gross salary of ₹12,85,000:

• Taxable income is ₹12,10,000, and the normal slab tax would be ₹61,500.
• With marginal relief, the tax is capped at ₹10,000, plus ₹400 cess, so you pay ₹10,400 instead of ₹63,960.

At ₹13,00,000 gross, the tax is ₹26,000. The relief stops mattering at about ₹12.7 lakh of taxable income (about ₹13.46 lakh gross for a salaried person).

The catch: within this band almost every extra rupee goes to tax. A raise from ₹12.75 lakh to ₹12.85 lakh adds ₹10,000 to your pay and ₹10,400 to your tax. If you are in this zone, an employer NPS contribution can help: in the new regime it is deductible up to 14% of basic plus DA. Subtract it from the gross figure you enter.

This calculator computes the new regime, which is the default. The old regime still exists for tax year 2026-27, with slabs of nil up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above, and a ₹50,000 standard deduction.

On the same ₹15 lakh salary, suppose you claim ₹1.5 lakh under section 123 (old 80C), ₹50,000 of your own NPS contribution and ₹2 lakh of home-loan interest. Old-regime taxable income is ₹10,50,000 and tax is ₹1,32,600 with cess, against ₹97,500 in the new regime. At this salary, the old regime wins only if your deductions beyond the standard deduction exceed about ₹5.44 lakh. If you have no business income, you can choose the regime each year when you file your return.

The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. "Previous year" and "assessment year" are replaced by a single tax year, so income earned from 1 April 2026 to 31 March 2027 belongs to tax year 2026-27. Income earned in FY 2025-26 is still filed under the 1961 Act as AY 2026-27. Familiar sections have new numbers:

As reported, 80D moves to section 126 and Form 16 is replaced by Form 130, so expect new names on your employer's paperwork.

• Capital gains taxed at special rates, such as gains on listed shares and equity funds. The rebate does not apply to tax on this income, so a person with ₹10 lakh of salary plus equity gains can still owe tax on the gains.
• Surcharge on very high incomes.
• Old-regime deductions such as HRA, section 123 and home-loan interest.
• Other income: add savings and FD interest, rent and freelance income to the gross figure yourself. If you are not salaried, choose "No" so the standard deduction is not applied.