New Tax Regime Income Tax Calculator FY 2025-26 (AY 2026-27)

An income tax calculator is a simple online tool that helps you estimate the tax on income based on rules under the Income Tax Act, 1961. You can enter your earnings, choose between the new tax regime or old regime, and include deductions like 80C and 80D where applicable. It gives a quick idea of how much tax you may need to pay.

It also supports smoother income tax filing by showing details such as gross income, deductions, and final payable tax. Many tools double up as an income tax return estimator, helping users understand their liability clearly before filing.

Benefits of using the new tax regime calculator

By using an online income tax calculator, you can avoid manual calculations and digitally estimate your income tax liability. This lets you remain compliant and pay the right taxes, which avoids future income tax notices.

For more clarity, let’s see four major reasons why you should use it:

1. Gives results based on the latest law

Usually, manual calculations are confusing and often lead to mistakes. An income tax calculator does all the math for you correctly. It applies the latest income tax slabs and rules. Thus, you get the exact tax amount you must pay.

2. Saves your time and reduces effort

Instead of spending hours on complex calculations, you can use this tool to estimate your income tax liability within seconds. It is quick and convenient. You can use it from your phone or computer at any time.

3. Easy to use

The calculator is designed in a user-friendly way. You just need to enter your income, home loan details, and other basic information. The tool will do the rest and show your tax amount instantly.

4. Lets you do smart tax planning

When you know your tax liability in advance, you can plan your finances better. For example, you can strategically choose between the old and new regimes or invest in tax-saving options (like ELSS, PPF, or NPS).
Moreover, there is no need for expert knowledge! The calculator is simple and can be used by anyone:

• Salaried employees
• Freelancers
• Business owners

What are the income tax slab rates for FY 2026-27?

The income tax slab rates for FY 2026-27 differ depending on whether you choose the new or old regime. Below is a clear breakdown.

New Tax Regime slabs

Note: Income up to Rs. 12 lakh may effectively attract no tax due to rebate (up to Rs. 60,000), except for income taxed at special rates.

Old Tax Regime slabs

Individuals below 60 years

Individuals aged 60 to 80 years

Individuals above 80 years

Surcharge and cess

If your income crosses certain limits, an extra charge called surcharge applies:

• 10% if income exceeds Rs. 50 lakh but is below Rs. 1 crore
• 15% if income is between Rs. 1 crore and Rs. 2 crore
• 25% if income is between Rs. 2 crore and Rs. 5 crore
• 25% (maximum under new regime) if income exceeds Rs. 5 crore

In addition, a 4% health and education cess is added to the total tax amount.

Rebate u/s 87A

A rebate under Section 87A can reduce your tax liability to zero if your income is within a specified limit. This benefit applies only to resident individuals and depends on the regime selected.

*For FY 2026-27, rebate is not available on income taxed at special rates, such as certain capital gains.

This rebate is applied after calculating tax as per slabs. If eligible, it directly reduces the payable tax amount, making compliance easier for lower and middle-income taxpayers.

How to calculate income tax of a salaried employee?

Calculating income tax is usually confusing for salaried employees. That’s because your salary includes various components like basic pay, HRA, and allowances. On top of it, you may also have deductions or investments that can reduce your taxable income.

Finding it tough? You can estimate your accurate income tax liability by following these five simple steps:

Step 1: Calculate gross income

Gross income is your total earnings before any tax deductions. It includes your:

• Basic salary
• House Rent Allowance (HRA)
• Leave Travel Allowance (LTA)
• Bonuses
• Other allowances

Please note that some parts of your salary (like HRA and LTA) can be exempt from tax if certain conditions are met. If we specifically talk about HRA, the exempt amount is the least of the following:

• Actual HRA received from your employer
• Rent paid minus 10% of your basic salary + DA
• 50% of your basic salary (if you live in a metro city)
• 40% of your basic salary (if you live in a non-metro city)

Now, subtract this exempt amount from your salary. Also, subtract the standard deduction of Rs. 75,000 (new regime) or Rs. 50,000 (old regime).

Once these deductions are done, add income from other sources (like interest from fixed deposits or rental income). The amount you get is your gross income.

Step 2: Calculate net taxable income

After knowing your gross income, now reduce it further using deductions allowed under the old tax regime. If you choose the new tax regime, most deductions are not allowed except for a few, like NPS (employer contribution) and Section 80CCD(2).

But if you are using the old tax regime, here are the major deductions you can claim:

Section 80C

You can claim deductions up to Rs. 1.5 lakh under this section. It includes:

• Public Provident Fund (PPF)
• Life insurance premiums
• ELSS mutual funds
• EPF (employee contribution)
• Principal repayment of a home loan
• Tuition fees for children

Section 80CCD

An extra Rs. 50,000 deduction is available for investments in the National Pension System (NPS). This is over and above the Rs. 1.5 lakh limit of Section 80C.

Section 80D

You can claim deductions for health insurance premiums:

• Rs. 25,000 for your family (self, spouse, children)
• Extra Rs. 25,000 for parents (if below 60 years)
• Rs. 50,000 for senior citizen parents

The maximum deduction you can claim under this section is Rs. 1,00,000.

Section 80DD

It covers medical expenses for disabled dependents. You can claim up to Rs. 1.25 lakh based on the severity of the disability.

Section 80E

It covers interest paid on an education loan. This deduction can be claimed for up to 8 years.

Now, add all these eligible deductions and subtract the total from your gross income. By doing so, you get your net taxable income.

Step 3: Apply income tax slabs

In this step, apply the correct income tax slab to your net taxable income. You can choose between the old tax regime and the new tax regime. Be aware that each has different rules and slabs:

• The old regime allows deductions (like 80C, 80D, 80E).
• The new regime has lower tax rates but fewer deductions.

You can use an income tax calculator to enter your net taxable income. It will apply the correct tax rate based on the slab you fall into. This gives you your basic tax amount.

Step 4: Calculate the tax payable

Now that you know your tax slab and base tax amount, add 4% Health and Education Cess to the amount. For example,

• Say your tax comes to Rs. 50,000.
• Now, cess would be Rs. 2,000 (4% of Rs. 50,000)
• This makes your total tax Rs. 52,000.

The income tax calculator does this automatically. You just need to check your total tax payable as shown by the tool.

Step 5: Consolidate and apply tax rebate (if eligible)

per the Income Tax Act, you are also eligible for a tax rebate under Section 87A. Let’s see how it differs under both old and new regimes:

The income tax calculator checks the eligibility for a tax rebate automatically. If you're eligible, it subtracts the rebate from your total tax and shows your final tax payable.

Income Tax Calculator FY 2026-2027: Calculate your taxes per slab rate after Budget 2026; New Tax Regime vs. Old Tax Regime

Use an income tax calculator to estimate your tax liability for FY 2026–2027 based on slab rates announced in Budget 2026. It compares old and new tax regimes for incomes from Rs 6 lakh to Rs 1 crore without considering deductions.

Income tax calculation (Old Tax Regime vs. New Tax Regime) for FY 2025-26

Budget 2026 income tax highlights: Changes in taxation

Finance Minister Nirmala Sitharaman, in the Union Budget 2026, introduced several important updates for taxpayers. While the tax slabs and standard deduction remain unchanged for FY 2026–2027, a number of procedural and compliance-related changes have been announced. These updates aim to simplify taxation, improve transparency, and reduce the burden on taxpayers. Below are the key highlights you should know.

1. New Income Tax Act effective from April 1, 2026

A new Income Tax Act will come into effect from 01 April 2026. The government plans to introduce simplified rules and redesigned forms to make tax filing easier and more user-friendly for individuals, reducing confusion and improving compliance.

2. Reduction of TCS rates

Budget 2026 has reduced Tax Collected at Source (TCS) rates in key areas. TCS on international tour packages is now set at a flat 2%. Similarly, remittances under the Liberalised Remittance Scheme for education and medical needs will attract a reduced TCS rate of 2%.

3. Extension of revised ITR filing deadline

Taxpayers now have more time to correct their filed returns. The deadline to submit a revised income tax return has been extended from 31 December to 31 March, subject to payment of a small fee.

4. No change in income tax slabs

There is no change in income tax slab rates for FY 2026–2027. The government has retained the existing structure under both tax regimes, ensuring continuity and predictability for taxpayers across all income groups.

A. New Income Tax Regime slab for FY 2026–27

Under the new regime, tax rates are uniform for all individuals, regardless of age. Income up to Rs 4,00,000 is tax-free. Rates increase gradually from 5% to 30% for higher income brackets. Tax rebate under Section 87A ensures zero tax up to Rs 12 lakh taxable income, along with a standard deduction of Rs 75,000 for salaried individuals.

B. Old Income Tax Regime slab for FY 2026-27

The old regime continues to offer different exemption limits based on age. Individuals below 60 years, senior citizens, and super senior citizens have varying tax-free thresholds. Tax rates range from 5% to 30%, depending on income levels.

5. PAN-based TDS for NRI property sales

For property transactions involving non-resident sellers, TDS can now be deducted using the buyer’s PAN. This removes the need for obtaining a separate TAN, making the process simpler for resident buyers.

6. Taxation of Sovereign Gold Bonds (SGBs)

Tax exemption on maturity proceeds of Sovereign Gold Bonds will continue only for bonds bought during the original issue. Bonds purchased from the secondary market will now attract tax on gains at maturity.

7. Buyback of shares

Income from share buybacks will now be treated as capital gains in the hands of investors. Tax rates will vary depending on whether the shareholder is a corporate or non-corporate entity, helping reduce tax avoidance opportunities.

8. Customs duty on personal imports

Customs duty on imported goods meant for personal use has been reduced from 20% to 10%. This change is expected to make personal imports more affordable for individuals.

9. Securities transaction tax (STT) on futures & options

STT rates on derivatives trading have been revised. Futures transactions will attract higher tax, while options trading will also see an increase in tax on premiums and exercise, slightly raising trading costs.

10. Automated process of getting NIL deduction certificate

A new automated system will allow eligible taxpayers to obtain lower or NIL TDS certificates without manual intervention. This rule-based process removes the need to approach tax officers, making it faster and more efficient.

11. Clarification of TDS provisions for manpower supply services

TDS rules for manpower services have been clarified by bringing them under contractor payments. This ensures uniform application of TDS rates and removes confusion regarding applicable provisions.

12. Depositories to accept Form 15G/15H

Depositories will now be allowed to collect Form 15G and Form 15H on behalf of investors and share them with companies. This eliminates the need to submit these forms multiple times across different institutions.

13. Individual ITR due dates remain unchanged

The due date for filing individual income tax returns remains 31 July. However, certain entities such as businesses not requiring audit and trusts may get time until 31 August to file their returns.

14. Foreign asset disclosure scheme

A one-time foreign asset disclosure scheme has been introduced for a period of six months. It is aimed at small taxpayers, including students and professionals with overseas exposure.

Under this scheme, individuals who have not disclosed foreign income or assets up to Rs 1 crore can regularise them by paying applicable tax and an additional amount in place of penalties, with protection from prosecution.

For those who have declared income but missed reporting assets up to Rs 5 crore, immunity from penalties and legal action is available upon payment of a fixed fee.

The data generated herein is completely and solely based on the information/ details provided by you in response to the questions specified by Bajaj Finserv Limited. These questions and the calculations thereon resulting in specific data are developed and based on certain tools and calculators that are made available to Bajaj Finserv Limited and are based on predetermined presumptions/ assumptions. Such information and the resultant data are provided only for user's convenience and information purposes.