Income Tax Calculator FY 2026-27
Compare Old vs New Tax Regime — Updated for Budget 2026
Your Details
Basic Details
Auto-calculated: ₹3,60,000 (50% of basic)
Affects HRA exemption: 50% of basic
Deductions (Old Regime)
EPF + PPF + ELSS + LIC + Tuition (max ₹1.5L)
Self ₹25K + Parents ₹25K/₹50K (senior citizen)
Home loan interest (max ₹2L for self-occupied)
Additional ₹50K under 80CCD(1B)
No other deductions allowed in new regime
Switch to New Tax Regime to save ₹2,00,200 annually.
Income Tax in India: Complete Guide
What is an Income Tax Calculator?
The MoneyMotion Income Tax Calculator is a free tool that helps salaried Indians compare their tax liability under the Old Tax Regime and the New Tax Regime side by side. Simply enter your CTC, HRA, rent paid, and deductions — and the calculator instantly shows you which regime saves you more money for FY 2026-27 (AY 2027-28).
With the new regime now being the default for salaried employees, it is more important than ever to run the numbers before filing your ITR. Many taxpayers with significant deductions (home loan interest, HRA, 80C investments) still benefit from the old regime — but the only way to know for certain is to compare both with your actual numbers. This calculator is updated for Budget 2026 tax slabs and includes the revised standard deduction of ₹75,000 under the new regime.
Income Tax Slabs for FY 2026-27
India has two parallel tax regimes. Here are the applicable slabs for FY 2026-27:
New Tax Regime (Default) — FY 2026-27
| Income Range | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard Deduction: ₹75,000. Rebate u/s 87A: No tax if taxable income ≤ ₹12,00,000.
Old Tax Regime — FY 2026-27
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard Deduction: ₹50,000. Rebate u/s 87A: No tax if taxable income ≤ ₹5,00,000.
Note: 4% Health & Education Cess is applicable on total tax under both regimes. Surcharge applies for income above ₹50 lakh.
Old Regime vs New Regime: Key Differences
The fundamental difference is simple: the old regime lets you claim a wide range of deductions and exemptions to reduce your taxable income, while the new regime offers lower slab rates but removes most deductions. The new regime also has a higher standard deduction (₹75,000 vs ₹50,000) and a more generous 87A rebate (up to ₹12L vs ₹5L).
Who benefits from the old regime? Taxpayers with high deductions — specifically those who claim HRA (rent-paying employees), have a home loan (Section 24b interest up to ₹2L), invest heavily in 80C instruments (EPF, PPF, ELSS, LIC), and pay health insurance premiums (80D). If your total deductions exceed roughly ₹3.75 lakh, the old regime is likely better.
Who benefits from the new regime? Employees with minimal deductions, those who own their home outright, those who don't invest in 80C instruments, or those earning below ₹12L (where the 87A rebate makes tax zero under the new regime).
Deductions Available Under Old Regime
The old regime allows the following key deductions that are not available under the new regime:
- Section 80C (up to ₹1,50,000): EPF contributions, PPF, ELSS mutual funds, LIC premiums, home loan principal repayment, tuition fees for children. Use our SIP Calculator to see how ELSS investments grow.
- Section 80D (up to ₹25,000 self + ₹25,000/₹50,000 parents): Health insurance premiums. The limit for senior citizen parents is ₹50,000.
- Section 24(b) (up to ₹2,00,000): Interest paid on home loan for self-occupied property. Use our EMI Calculator to plan your home loan interest deduction.
- Section 80CCD(1B) (up to ₹50,000): Additional NPS contribution over and above the 80C limit — this is a separate, additional deduction.
- HRA Exemption: Exempt = minimum of (a) Actual HRA received, (b) Rent paid minus 10% of basic salary, (c) 50% of basic for metro / 40% for non-metro.
How to Choose the Right Tax Regime
Here is a practical decision framework: if your total eligible deductions exceed ₹3.75 lakh, the old regime is likely better. Below that, the new regime's lower rates usually win.
Real Examples
- ₹8 LPA salary, minimal deductions: New regime wins. The 87A rebate makes tax zero if taxable income is ≤ ₹12L after the ₹75K standard deduction. Effective tax = ₹0.
- ₹15 LPA salary, HRA + 80C + 80D: Old regime likely better. With ₹1.5L (80C) + ₹1.5L (HRA) + ₹25K (80D) + ₹50K (standard deduction) = ₹3.75L deductions, taxable income drops to ₹11.25L. Old regime tax ≈ ₹1.4L vs new regime ≈ ₹1.5L.
- ₹25 LPA salary, home loan + full deductions: Old regime clearly better. With ₹2L (24b) + ₹1.5L (80C) + ₹50K (NPS) + ₹50K (80D) + ₹50K (standard) = ₹5L deductions, taxable income = ₹20L. Old regime tax ≈ ₹3.9L vs new regime ≈ ₹4.2L.
Use our calculator above to compare with your exact numbers. See your complete financial picture including tax optimization.
Tax Saving Tips for Salaried Employees
- Maximize 80C early in the year: Don't wait until March. Invest in EPF, PPF, or ELSS at the start of the financial year so your money compounds longer. The ₹1.5L limit is shared across all 80C instruments.
- Claim NPS 80CCD(1B) separately: The ₹50,000 NPS deduction under Section 80CCD(1B) is over and above your 80C limit. This is one of the most underutilized deductions — it can save ₹15,600 in taxes for someone in the 30% bracket.
- Claim HRA if you're renting: If you pay rent but haven't submitted rent receipts to your employer, you're leaving money on the table. Even if your employer doesn't process it, you can claim it while filing your ITR.
- Medical insurance for parents: The 80D deduction for senior citizen parents is ₹50,000 — double the regular limit. If your parents are senior citizens, this alone can save ₹15,600 in taxes.
- Home loan interest deduction: If you have a home loan, the ₹2L interest deduction under Section 24(b) is one of the largest available. Use our EMI Calculator to see your interest breakdown.
- Switch regimes every year: Salaried employees can switch between old and new regime every year. Always run the comparison before filing — your optimal regime can change if your salary or deductions change.
What is an Income Tax Calculator?
The MoneyMotion Income Tax Calculator is a free tool that helps salaried Indians compare their tax liability under the Old Tax Regime and the New Tax Regime side by side. Simply enter your CTC, HRA, rent paid, and deductions — and the calculator instantly shows you which regime saves you more money for FY 2026-27 (AY 2027-28).
With the new regime now being the default for salaried employees, it is more important than ever to run the numbers before filing your ITR. Many taxpayers with significant deductions (home loan interest, HRA, 80C investments) still benefit from the old regime — but the only way to know for certain is to compare both with your actual numbers. This calculator is updated for Budget 2026 tax slabs and includes the revised standard deduction of ₹75,000 under the new regime.
Income Tax Slabs for FY 2026-27
India has two parallel tax regimes. Here are the applicable slabs for FY 2026-27:
New Tax Regime (Default) — FY 2026-27
| Income Range | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard Deduction: ₹75,000. Rebate u/s 87A: No tax if taxable income ≤ ₹12,00,000.
Old Tax Regime — FY 2026-27
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard Deduction: ₹50,000. Rebate u/s 87A: No tax if taxable income ≤ ₹5,00,000.
Note: 4% Health & Education Cess is applicable on total tax under both regimes. Surcharge applies for income above ₹50 lakh.
Old Regime vs New Regime: Key Differences
The fundamental difference is simple: the old regime lets you claim a wide range of deductions and exemptions to reduce your taxable income, while the new regime offers lower slab rates but removes most deductions. The new regime also has a higher standard deduction (₹75,000 vs ₹50,000) and a more generous 87A rebate (up to ₹12L vs ₹5L).
Who benefits from the old regime? Taxpayers with high deductions — specifically those who claim HRA (rent-paying employees), have a home loan (Section 24b interest up to ₹2L), invest heavily in 80C instruments (EPF, PPF, ELSS, LIC), and pay health insurance premiums (80D). If your total deductions exceed roughly ₹3.75 lakh, the old regime is likely better.
Who benefits from the new regime? Employees with minimal deductions, those who own their home outright, those who don't invest in 80C instruments, or those earning below ₹12L (where the 87A rebate makes tax zero under the new regime).
Deductions Available Under Old Regime
The old regime allows the following key deductions that are not available under the new regime:
- Section 80C (up to ₹1,50,000): EPF contributions, PPF, ELSS mutual funds, LIC premiums, home loan principal repayment, tuition fees for children. Use our SIP Calculator to see how ELSS investments grow.
- Section 80D (up to ₹25,000 self + ₹25,000/₹50,000 parents): Health insurance premiums. The limit for senior citizen parents is ₹50,000.
- Section 24(b) (up to ₹2,00,000): Interest paid on home loan for self-occupied property. Use our EMI Calculator to plan your home loan interest deduction.
- Section 80CCD(1B) (up to ₹50,000): Additional NPS contribution over and above the 80C limit — this is a separate, additional deduction.
- HRA Exemption: Exempt = minimum of (a) Actual HRA received, (b) Rent paid minus 10% of basic salary, (c) 50% of basic for metro / 40% for non-metro.
How to Choose the Right Tax Regime
Here is a practical decision framework: if your total eligible deductions exceed ₹3.75 lakh, the old regime is likely better. Below that, the new regime's lower rates usually win.
Real Examples
- ₹8 LPA salary, minimal deductions: New regime wins. The 87A rebate makes tax zero if taxable income is ≤ ₹12L after the ₹75K standard deduction. Effective tax = ₹0.
- ₹15 LPA salary, HRA + 80C + 80D: Old regime likely better. With ₹1.5L (80C) + ₹1.5L (HRA) + ₹25K (80D) + ₹50K (standard deduction) = ₹3.75L deductions, taxable income drops to ₹11.25L. Old regime tax ≈ ₹1.4L vs new regime ≈ ₹1.5L.
- ₹25 LPA salary, home loan + full deductions: Old regime clearly better. With ₹2L (24b) + ₹1.5L (80C) + ₹50K (NPS) + ₹50K (80D) + ₹50K (standard) = ₹5L deductions, taxable income = ₹20L. Old regime tax ≈ ₹3.9L vs new regime ≈ ₹4.2L.
Use our calculator above to compare with your exact numbers. See your complete financial picture including tax optimization.
Tax Saving Tips for Salaried Employees
- Maximize 80C early in the year: Don't wait until March. Invest in EPF, PPF, or ELSS at the start of the financial year so your money compounds longer. The ₹1.5L limit is shared across all 80C instruments.
- Claim NPS 80CCD(1B) separately: The ₹50,000 NPS deduction under Section 80CCD(1B) is over and above your 80C limit. This is one of the most underutilized deductions — it can save ₹15,600 in taxes for someone in the 30% bracket.
- Claim HRA if you're renting: If you pay rent but haven't submitted rent receipts to your employer, you're leaving money on the table. Even if your employer doesn't process it, you can claim it while filing your ITR.
- Medical insurance for parents: The 80D deduction for senior citizen parents is ₹50,000 — double the regular limit. If your parents are senior citizens, this alone can save ₹15,600 in taxes.
- Home loan interest deduction: If you have a home loan, the ₹2L interest deduction under Section 24(b) is one of the largest available. Use our EMI Calculator to see your interest breakdown.
- Switch regimes every year: Salaried employees can switch between old and new regime every year. Always run the comparison before filing — your optimal regime can change if your salary or deductions change.
