New Tax Regime Calculator — FY 2026-27
Enter your annual income to see slab-wise tax, 87A rebate, marginal relief, surcharge & cess under the new regime (default regime).
How to use this calculator
- Enter your annual gross income (CTC salary, business or other income).
- Tick the salaried box if you earn a salary — the ₹75,000 standard deduction is applied automatically.
- Hit Calculate to see your slab-wise tax, 87A rebate or marginal relief, surcharge and 4% health & education cess.
New regime slabs — FY 2026-27
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹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% |
Worked examples (salaried)
| Annual salary | Taxable income | Total tax (incl. cess) |
|---|
87A rebate vs marginal relief — what is the difference?
If your taxable income is up to ₹12 lakh, Section 87A gives a rebate of up to ₹60,000 — wiping out your entire slab tax. That is why income up to ₹12 lakh (₹12.75 lakh for salaried, after the ₹75,000 standard deduction) pays zero tax.
If your taxable income is slightly above ₹12 lakh, marginal relief kicks in: the extra tax you pay cannot exceed the extra income above ₹12 lakh. Example: at ₹12.25 lakh taxable income, normal slab tax would be ₹63,750 — but marginal relief caps it at ₹25,000 (the amount above ₹12 lakh), plus 4% cess = ₹26,000 total.
Surcharge & cess
Surcharge applies on high incomes: 10% above ₹50 lakh, 15% above ₹1 crore, capped at 25% under the new regime (even above ₹2–5 crore). A 4% health & education cess applies on (tax + surcharge).
Frequently asked questions
Is the new tax regime mandatory in FY 2026-27?
No. It is the default regime, but you can opt for the old regime while filing your return if it saves you more tax (typically only when your deductions are large — roughly ₹4–8.5 lakh depending on salary).
How much tax will I pay on ₹15 lakh salary in the new regime?
Taxable income after ₹75,000 standard deduction = ₹14.25 lakh. Slab tax = ₹93,750, plus 4% cess = ₹3,750. Total ≈ ₹97,500 (effective rate ~6.5%).
Is ₹12 lakh really tax-free in the new regime?
Yes, for resident individuals: slab tax on ₹12 lakh is ₹60,000 and the 87A rebate (up to ₹60,000) reduces it to zero. For salaried individuals the zero-tax threshold stretches to ₹12.75 lakh thanks to the standard deduction.
What is marginal relief with an example?
At ₹13 lakh salary (₹12.25 lakh taxable), slab tax would be ₹63,750 — but you only pay ₹25,000 + cess = ₹26,000, because marginal relief caps the extra tax at the income above ₹12 lakh.
Does the 87A rebate apply to capital gains?
No. The rebate does not apply against income taxed at special rates (e.g. equity capital gains). This calculator covers normal slab-rate income only.
Are the slabs different for senior citizens?
No. Under the new regime the same slabs apply to all age groups — there is no separate senior-citizen slab.
When should I choose the old regime instead?
Rough rule: if your total deductions (80C, HRA, home-loan interest, 80D, standard deduction) exceed about ₹5.9 lakh at a ₹15 lakh salary, compare both regimes — the old one may win.
Updated: October 2026 · For FY 2026-27 (income earned 1 Apr 2026 – 31 Mar 2027). This is an estimate for planning only, not tax advice. Verify with the official incometax.gov.in calculator before filing.