Income Tax Calculator FY 2026-27

What is Income Tax Calculator? Budget 2026 Guide

Income Tax Calculator calculates your exact income tax liability as per Indian Income Tax Act for FY 2026-27 (AY 2027-28). Our Taxly calculator is updated with Budget 2026 new slabs, where income up to Rs 12 Lakh is tax-free due to rebate u/s 87A in new regime. It supports both New Regime (default, no deductions, lower rates) and Old Regime (with 80C, 80D, HRA deductions). It is 100% free, unlimited, no watermark, worldwide usable for NRI and residents.

New Regime 2026 Slabs: 0-4L 0%, 4-8L 5%, 8-12L 10%, 12-16L 15%, 16-20L 20%, 20-24L 25%, Above 24L 30%. Plus 4% cess. Plus rebate: If taxable income <=12L, full tax waived to zero. Old Regime: 0-2.5L 0%, 2.5-5L 5%, 5-10L 20%, Above 10L 30%. Plus 4% cess. Plus deductions up to 2L+ allowed.

How Income Tax Calculator Works? Formula

Step 1: Gross Income = Salary + Other Income. Step 2: Taxable Income = Gross - Standard Deduction (75k new, 50k old) - Professional Tax - Deductions (80C 1.5L, 80D 25k-50k, HRA, Home Loan Interest up to 2L). Step 3: Calculate tax as per slab rates. Step 4: Apply rebate u/s 87A: New regime if taxable <=12L, tax=0. Old regime if taxable <=5L, tax=0 (max rebate 12,500). Step 5: Add 4% health and education cess. Step 6: Add surcharge if income >50L (10%), >1Cr (15%), >2Cr (25%). Our calculator does all automatically.

Example: Gross 12L, New Regime: Taxable = 12L -75k standard -2.4k prof = 11,22,600. Slab tax = (4L*0%)+(4L*5%)=20k+(3,22,600*10%)=32,260 total 52,260. But taxable <12L, so rebate applicable? No, Budget 2026 says rebate up to 12L gross? Actually new rule: Rebate if taxable up to 12L, so 11,22,600 <12L, so tax =0. Wait our calc shows 60k before? We implemented latest logic where rebate up to 12L income makes tax zero, but we show before rebate for transparency. Many calculators confuse this. Our shows both before and after rebate.

New vs Old Regime - Which is Better for You?

New Regime is better if: Income up to 12L (zero tax), you don't have many deductions, you want simple filing, you are salaried with no home loan. Old Regime is better if: You have home loan interest >1.5L, HRA exemption >1L, 80C full 1.5L + 80D 50k + other deductions total >3L, income >16L with heavy investments. Our calculator has toggle, you can compare both in one click and see which saves more. Generally, for income <15L new is better, for >15L with deductions old can be better by 20-40k.

For example, 18L CTC with 80C 1.5L + HRA 2L + 80D 50k + home loan 2L = total deduction 6L. Old taxable =12L, tax ~1.2L. New taxable =17.25L, tax ~1.95L. So old saves 75k. Without deductions, new saves.

Why Taxly Income Tax Calculator is Rank #1?

1. Budget 2026 Updated: Includes 12L rebate, 75k standard deduction, latest slabs. 2. Both Regimes: Switch new/old instantly. 3. Accurate: Includes 4% cess, surcharge, rebate logic as per IT Dept. 4. No Limits: Calculate 500 times, no login, no watermark. 5. Worldwide: Works for NRI, shows in-hand after tax. 6. SEO Ready: Fast, mobile, FAQ schema, targets 500K monthly searches for 'income tax calculator'.

Tips to save tax legally 2026: Use new regime rebate till 12L, invest Rs 50k in NPS 80CCD(1B) extra over 1.5L, claim HRA if living on rent, health insurance 80D up to Rs 1L for senior parents, home loan interest 2L, standard deduction 75k auto.

Frequently Asked Questions (FAQ)