Which tax regime should I choose for FY 2026-27 or AY 2026-27?

It depends on your deductions. The new regime is the default and is usually better if you claim few deductions, thanks to lower slabs and zero tax up to Rs 12 lakh. The old regime can win if you have large 80C, 80D, HRA or home-loan-interest claims. This calculator computes both and shows which is lower for your numbers.

Is income up to Rs 12 lakh tax-free?

Yes, under the new regime for both FY 2025-26 (AY 2026-27) and FY 2026-27 (Tax Year 2026-27). The rebate — Section 87A of the 1961 Act, Section 156 of the Income-tax Act, 2025 — makes taxable income up to Rs 12 lakh tax-free. For salaried taxpayers, the Rs 75,000 standard deduction raises the effective tax-free salary to about Rs 12.75 lakh.

Did the tax slabs change for FY 2026-27 under the Income Tax Act 2025?

No. Budget 2026 left the slab rates, the Rs 60,000 new-regime rebate, the Rs 75,000 standard deduction, surcharge and cess unchanged for FY 2026-27. What changed is the law and the labels: the Income-tax Act, 2025 applies from 1 April 2026, FY 2026-27 is called Tax Year 2026-27, and the new regime now sits in Section 202 (previously Section 115BAC). Your tax number for FY 2026-27 is the same as it would have been under the old Act.

Does this calculator include cess and surcharge?

Yes. It adds the 4% health and education cess to both regimes, and applies surcharge for higher incomes, with the new-regime surcharge capped at 25%. It is an estimate for normal slab income and does not cover capital gains taxed at special rates.

Income Tax Calculator FY 2026-27 & AY 2026-27: Old vs New Regime

Old vs New Regime Tax Calculator

Compare your income tax under the new and old regime in seconds for FY 2026-27 (Tax Year 2026-27, Income Tax Act 2025), FY 2025-26 (AY 2026-27) and FY 2024-25 (AY 2025-26). Enter your income, pick your age and add deductions to see which regime saves you more.

Your details

Financial year

Age group (affects old-regime exemption)

Annual income (gross, before deductions)

I am salaried / a pensioner (adds standard deduction)

Deductions & exemptions

Allowed under both regimes

Employer's NPS — 80CCD(2) employer's contribution to NPS

Other allowed 80CCH (Agniveer), family pension 57(iia)

Old regime only

Section 80C PF, ELSS, LIC, PPF — max ₹1.5L

Section 80D Health insurance

NPS 80CCD(1B) max ₹50k

Home loan interest 24(b) max ₹2L

HRA / other exemptions

Your estimated tax

Enter your income to see the comparison.

New regime DEFAULT

₹0

Total tax payable

Old regime WITH DEDUCTIONS

₹0

Total tax payable

Get expert help filing your ITR

How this works & assumptions. This is an estimate for a resident individual with normal slab income. The new regime applies the standard deduction of ₹75,000 (salaried), any employer-NPS contribution under Section 80CCD(2) you enter, and the Section 87A rebate that makes income up to ₹12 lakh tax-free for FY 2025-26 (up to ₹7 lakh for FY 2024-25), with marginal relief just above the limit. FY 2026-27 (Tax Year 2026-27) is governed by the Income-tax Act, 2025 from 1 April 2026: Budget 2026 kept the slabs, the ₹60,000 rebate (now Section 156), the ₹75,000 standard deduction, surcharge and cess unchanged, so the FY 2026-27 result matches FY 2025-26; the new regime is now Section 202 (earlier 115BAC) and the old-regime deduction sections carry new numbers (80C is Section 123, 80D is 126) with the same limits. The old regime applies your deductions, a ₹50,000 standard deduction (salaried) and the ₹12,500 rebate up to ₹5 lakh. Both include 4% health & education cess and surcharge for higher incomes (new-regime surcharge is capped at 25%). It does not cover capital gains taxed at special rates, presumptive business income, or every exemption. This is a guide, not tax advice — confirm with a qualified professional before filing.

How to choose between the old and new regime

The new tax regime is the default for AY 2026-27 and for Tax Year 2026-27 under the Income-tax Act, 2025. It has lower slab rates and makes income up to ₹12 lakh tax-free, but it removes most deductions. The old regime keeps deductions like 80C, 80D, HRA and home-loan interest but has higher slabs. As a rule of thumb, the more you claim in deductions, the more likely the old regime wins — this calculator settles it with your actual numbers. For a deeper explanation, read our guide on new vs old tax regime in 2026, our complete ITR filing guide for AY 2026-27, and for the FY 2026-27 transition our old vs new section numbers and new form numbers guides.

Once you know your regime, our Saket team can handle the filing end to end — see ITR filing & tax advisory, or book a free consultation.

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