An income tax calculator is a free online tool that estimates your total tax liability under both the old and new tax regimes for a given financial year, based on your income, deductions, and exemptions. Use SalaryBox’s income tax calculator below to compare your tax under FY 2026-27 (AY 2027-28) old and new regime slabs – updated as per Union Budget 2026 – and find which regime saves you more.

Under the new tax regime, salaried individuals earning up to ₹12,75,000 per year pay zero income tax thanks to the ₹75,000 standard deduction and Section 87A rebate of up to ₹60,000. The new regime is the default tax regime from FY 2023-24 onwards – you must actively opt for the old regime if you want to claim additional deductions under Chapter VI-A.

How to Use the SalaryBox Income Tax Calculator

Follow these steps to calculate your income tax for FY 2026-27:

1. Enter Basic Details – Select the financial year (2026-27) and your age group. Tax slabs under the old regime vary for senior citizens (60-80 years) and super senior citizens (above 80 years).
2. Enter Income Details – Add your gross salary (annual CTC before exemptions), interest income from savings accounts or fixed deposits, rental income from let-out property, income from digital assets (cryptocurrency/VDA), and any other income such as freelancing or capital gains.
3. Add Home Loan Interest – If you have a home loan, enter the interest paid on self-occupied property (deductible only in old regime, up to ₹2,00,000) and interest on let-out property (deductible in both regimes).
4. Enter Deductions – Add your tax-saving investments under Section 80C (PPF, ELSS, EPF – max ₹1.5 lakh), Section 80D (health insurance), Section 80CCD(1B) (NPS – max ₹50,000), and other applicable deductions. These apply only to the old regime, except 80CCD(2) which works in both.
5. View Results – The calculator instantly shows your tax liability under both regimes side by side, highlights which regime saves more, and lets you view a detailed calculation breakdown.

Income Tax Slabs for FY 2026-27 – New Tax Regime

The new tax regime under Section 115BAC (Section 202 under Income Tax Act, 2025) offers lower tax rates with fewer deductions. These slab rates remain unchanged from FY 2025-26, as confirmed in Union Budget 2026.

Zero Tax on Income Up to ₹12,75,000 – How It Works

Under the new regime, if your taxable income is ₹12,00,000 or below, you are eligible for a tax rebate under Section 87A of up to ₹60,000. For salaried individuals, the ₹75,000 standard deduction effectively makes salary income up to ₹12,75,000 completely tax-free. Here is how:

Important: The Section 87A rebate under the new regime applies only to tax calculated at normal slab rates. Income taxed at special rates – such as short-term capital gains under Section 111A, long-term capital gains under Section 112A, and income from virtual digital assets (crypto) under Section 115BBH – is not eligible for this rebate.

Income Tax Slabs for FY 2026-27 – Old Tax Regime

The old regime allows more deductions and exemptions, which can significantly reduce taxable income for individuals with substantial investments, home loans, or medical insurance.

For Individuals Below 60 Years

For Senior Citizens (60-80 Years)

For Super Senior Citizens (Above 80 Years)

Old Regime vs New Regime – Which Is Better?

The choice between old and new regime depends on your deduction profile. Here is a quick comparison of key differences:

Rule of thumb: If your total deductions under the old regime (80C + 80D + HRA + home loan interest + NPS + others) exceed approximately ₹3.75 lakh for income up to ₹15 lakh, or ₹5.5-8 lakh for income between ₹15-25 lakh, the old regime may save you more. For everyone else, the new regime is almost always better. Use the calculator above to compare your exact numbers.

Income Tax at Different Salary Levels – FY 2026-27

The table below shows how much tax you pay under each regime at various salary levels, assuming no deductions other than standard deduction:

Income Tax Calculation Example – FY 2026-27

Rahul is a 32-year-old salaried employee with the following income and investments in FY 2026-27:

Gross Salary: ₹15,00,000 | Savings Bank Interest: ₹12,000 | Health Insurance Premium (self + parents): ₹45,000 | PPF Contribution: ₹1,50,000 | NPS (80CCD(1B)): ₹50,000 | Home Loan Interest (self-occupied): ₹1,80,000

In this example, even with ₹4,35,000 in deductions under the old regime, the new regime saves Rahul ₹26,052. The break-even point at ₹15 lakh salary is approximately ₹5.4 lakh in old regime deductions – below that, the new regime wins.

Tax-Saving Deductions Under the Income Tax Act

If you opt for the old regime, the following deductions can reduce your taxable income significantly:

Section 80C – Up to ₹1,50,000

The most widely used deduction, covering EPF (Employee Provident Fund), PPF (Public Provident Fund), ELSS (Equity Linked Savings Scheme with 3-year lock-in), life insurance premiums, NSC (National Savings Certificate), Sukanya Samriddhi Yojana, 5-year tax-saver fixed deposits, home loan principal repayment, and children’s tuition fees.

Section 80D – Health Insurance

Deduction on health insurance premiums – up to ₹25,000 for self, spouse, and children, plus an additional ₹25,000 for parents (₹50,000 if parents are senior citizens). Maximum total deduction: ₹1,00,000 if both the taxpayer and parents are senior citizens.

Section 80CCD(1B) – NPS

Additional deduction of up to ₹50,000 for contributions to the National Pension System, over and above the ₹1.5 lakh limit of Section 80C. Employer NPS contributions under 80CCD(2) are allowed in both old and new regimes with no cap.

Section 24(b) – Home Loan Interest

Interest paid on a home loan for self-occupied property is deductible up to ₹2,00,000 per year under the old regime. For let-out property, the full interest amount can be deducted after claiming the 30% standard deduction on rental income under Section 24(a). Let-out property deductions are allowed in both regimes.

Other Deductions

Section 80TTA (savings account interest up to ₹10,000; ₹50,000 for seniors under 80TTB), Section 80G (donations to approved charities), Section 80E (interest on education loan – no cap), and Section 80EEA (additional home loan interest up to ₹1,50,000 for affordable housing).

Surcharge and Health & Education Cess

If your taxable income exceeds ₹50 lakh, a surcharge is levied on your income tax (not on income). Additionally, a 4% Health and Education Cess is charged on the total of income tax plus surcharge for all taxpayers.

Tax on Digital Assets (Cryptocurrency & VDA)

Income from virtual digital assets – including cryptocurrency, NFTs, and other VDAs – is taxed at a flat rate of 30% under Section 115BBH, irrespective of your tax slab or regime. No deductions are allowed against this income except the cost of acquisition. A 1% TDS under Section 194S applies on transfers exceeding ₹10,000 in a financial year (₹50,000 for specified persons).

Under the new tax regime, digital asset income is explicitly excluded from the Section 87A rebate (as per the Finance Act 2025 proviso). Under the old regime, the rebate can cover VDA tax if your total income (including digital assets) is within the ₹5 lakh limit.

Income Tax Return Filing Deadlines – FY 2026-27

Under the new Income Tax Act, 2025, FY 2026-27 is the first “Tax Year.” Key deadlines:

Late filing penalty: ₹1,000 if total income is below ₹5 lakh, or ₹5,000 if above ₹5 lakh (Section 234F).

Frequently Asked Questions – Income Tax Calculator