Income Tax Calculator
Free online income tax calculator for FY 2026-27 (AY 2027-28) and FY 2025-26. Compare the old vs new tax regime, apply 80C, HRA, 80D and the standard deduction, and see your exact tax with §87A rebate, surcharge and cess.
| Old Regime | New Regime | |
|---|---|---|
| Total Income | ₹0 | ₹0 |
| Exemptions & Deductions | ₹50,000 | ₹75,000 |
| Taxable Income | ₹0 | ₹0 |
| Income Tax (before rebate) | ₹0 | ₹0 |
| Less: Rebate u/s 87A | ₹0 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health & Education Cess (4%) | ₹0 | ₹0 |
| Total Tax Payable | ₹0 | ₹0 |
The new regime allows only the ₹75,000 standard deduction and employer NPS — the deduction inputs on the left apply to the old regime. Figures are indicative; confirm against the latest Budget / CBDT rules and your Form 16.
| Income slab | Tax rate |
|---|---|
| ₹0 – ₹4,00,000 | 0% |
| ₹4,00,000 – ₹8,00,000 | 5% |
| ₹8,00,000 – ₹12,00,000 | 10% |
| ₹12,00,000 – ₹16,00,000 | 15% |
| ₹16,00,000 – ₹20,00,000 | 20% |
| ₹20,00,000 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Income slab | Tax rate |
|---|---|
| ₹0 – ₹2,50,000 | 0% |
| ₹2,50,000 – ₹5,00,000 | 5% |
| ₹5,00,000 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Key takeaways
- Computes both regimes side by side and recommends the one with the lower tax.
- New regime (AY 2027-28): taxable income up to ₹12 lakh can be fully tax-free via the §87A rebate, plus a ₹75,000 standard deduction.
- Old regime lets you claim 80C (₹1.5L), HRA, 80D, home-loan interest and more — it usually wins when your deductions are large.
- Adds the 4% health & education cess and any surcharge automatically; senior citizens (60+/80+) get higher exemption limits in the old regime.
About the Income Tax Calculator
An income tax calculator estimates the tax payable on your total annual income for a given assessment year. Indian taxpayers can choose between two systems — the new regime (lower slab rates, almost no deductions) and the old regime (higher rates, but generous deductions and exemptions). The ATS Income Tax Calculator works out both and recommends whichever costs you less.
Under the new regime for AY 2027-28 (FY 2026-27), slabs run from 0% up to ₹4 lakh through to 30% above ₹24 lakh, with a ₹75,000 standard deduction. Thanks to the enhanced §87A rebate, a taxable income up to ₹12 lakh attracts no tax at all — so a salary of roughly ₹12.75 lakh (after the standard deduction) can be entirely tax-free.
The old regime keeps the ₹2.5 lakh / ₹5 lakh / ₹10 lakh slabs but lets you reduce taxable income with the ₹50,000 standard deduction, 80C investments (up to ₹1.5 lakh), HRA exemption, 80D health insurance, home-loan interest under section 24(b) and more. On top of the slab tax, the calculator applies the §87A rebate, any surcharge on high incomes, and a 4% health & education cess to give your final liability.
| Deduction / exemption | Section | Limit |
|---|---|---|
| Standard deduction | — | ₹50,000 (old) · ₹75,000 (new) |
| Investments — PPF, ELSS, LIC, EPF, etc. | 80C | ₹1,50,000 |
| NPS (self contribution) | 80CCD(1B) | ₹50,000 |
| Home-loan interest (self-occupied) | 24(b) | ₹2,00,000 |
| Health insurance — self / family | 80D | ₹25,000 (₹50,000 if 60+) |
| Health insurance — parents | 80D | ₹50,000 |
| HRA exemption | 10(13A) | 50% metro / 40% non-metro of basic+DA |
Worked example (AY 2027-28)
- Salary ₹10,00,000, no deductions: new-regime taxable ₹9,25,000 → tax ₹0 (covered by the ₹12L rebate), old-regime tax ₹1,06,600 → the new regime wins.
- Add ₹1,50,000 (80C) + ₹50,000 home-loan interest: old-regime taxable falls to ₹7,50,000 → tax ₹65,000.
- A salary up to about ₹12,75,000 with only the standard deduction → ₹12,00,000 taxable → ₹0 tax under the new regime.
Frequently Asked Questions
Which is better — the old or the new tax regime?
It depends on your deductions. The new regime has lower rates but almost no deductions; the old regime has higher rates but lets you claim 80C, HRA, 80D and more. This calculator computes both and recommends whichever gives you the lower tax.
Is income up to ₹12 lakh really tax-free?
Under the new regime for AY 2027-28, the §87A rebate makes a taxable income of up to ₹12 lakh fully tax-free (rebate up to ₹60,000). With the ₹75,000 standard deduction, a salary of about ₹12.75 lakh pays no tax. Income above that is taxed at the normal slab rates.
What is the difference between FY and AY?
The Financial Year (FY) is the year in which you earn income; the Assessment Year (AY) is the following year in which you file and are assessed. FY 2026-27 corresponds to AY 2027-28.
Does the new regime allow 80C, HRA and 80D?
No. The new regime allows only the standard deduction and the employer NPS contribution (80CCD(2)). To claim 80C, HRA, 80D, home-loan interest and similar deductions you must use the old regime.
How is the §87A rebate calculated?
If your taxable income is at or below the rebate threshold, tax up to a cap is waived. New regime AY 2027-28: taxable ≤ ₹12 lakh → rebate up to ₹60,000. Old regime: taxable ≤ ₹5 lakh → rebate up to ₹12,500.
Does the calculator include cess and surcharge?
Yes. It adds a 4% health & education cess on the tax plus surcharge, and applies surcharge for higher incomes (from 10% above ₹50 lakh). Both are shown in the regime-wise breakdown.