GST & Tax
Income Tax Calculator
New-regime income tax for FY 2026-27 — slabs, 87A rebate, surcharge, cess and monthly TDS.
Rates last verified 2026-09-24 — always confirm against the current notification before filing.
New tax regime only. Enter gross salary before PF and professional tax, which aren't deductible here anyway. Employer NPS counts up to 14% of basic pay.
| Income slice | Rate | Amount in slice | Tax |
|---|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹4,00,000.00 | ₹0.00 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹4,00,000.00 | ₹20,000.00 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹4,00,000.00 | ₹40,000.00 |
| ₹12,00,000 – ₹16,00,000 | 15% | ₹2,25,000.00 | ₹33,750.00 |
How the new regime works out your tax
The same rules apply to FY 2025-26 & FY 2026-27. Salaried people first get a flat ₹75,000 standard deduction, plus any employer NPS contribution under 80CCD(2). What's left is taxed in slices: nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% for each ₹4 lakh after that, and 30% above ₹24 lakh. If taxable income is ₹12 lakh or less, the 87A rebate cancels the tax entirely, so a salary of up to ₹12.75 lakh pays nothing. Just above ₹12 lakh, marginal relief keeps your tax from being more than the income above ₹12 lakh. Surcharge applies above ₹50 lakh, and 4% cess goes on top of everything.
This tool covers the new regime only, which is now the default and the better choice for almost everyone. It doesn't handle capital gains taxed at special rates, or the old regime's HRA, 80C and home-loan deductions. For the full walkthrough, read the new tax regime explained simply. To start from a CTC figure, use the Salary Calculator.
Worked example
A ₹15,00,000 salary minus the ₹75,000 standard deduction leaves ₹14,25,000 taxable. Slab tax is ₹20,000 (5% of ₹4–8 lakh) + ₹40,000 (10% of ₹8–12 lakh) + ₹33,750 (15% of the ₹2,25,000 above ₹12 lakh) = ₹93,750. That's above the rebate limit, so there's no rebate. Adding 4% cess gives ₹97,500 for the year, about ₹8,125 a month in TDS.
Frequently asked questions
How much salary is tax-free under the new regime?
Up to ₹12,75,000 of salary. The ₹75,000 standard deduction brings that down to ₹12,00,000 taxable, and the 87A rebate cancels the tax on it (up to ₹60,000). Without salary income, and so without the standard deduction, the tax-free limit is ₹12,00,000.
What is marginal relief at ₹12 lakh?
If taxable income goes a little over ₹12 lakh, the rebate would disappear and tax would jump by about ₹60,000. Marginal relief stops that: your tax (before cess) can't be more than the amount by which your income exceeds ₹12 lakh. It stops mattering at about ₹12.7 lakh of taxable income.
Are PF, professional tax or HRA deductible under the new regime?
No. The new regime doesn't allow 80C (including your PF contribution), professional tax, HRA exemption or home-loan interest on a self-occupied house. The main deductions left are the ₹75,000 standard deduction and your employer's NPS contribution under 80CCD(2), up to 14% of basic pay.
Is monthly TDS exactly the annual tax divided by 12?
Roughly. Employers estimate your yearly tax and spread it over the remaining months, so TDS changes if your pay changes during the year, or if you join partway through or declare income from a previous employer.
Did Budget 2026 change the slabs?
No. The Budget 2025 slabs, the ₹75,000 standard deduction and the ₹12 lakh rebate limit continue for FY 2026-27, now under the Income-tax Act, 2025, which took effect on 1 April 2026.