What is the tax-free income limit for FY 2026-27?

Under the New Tax Regime for FY 2026-27, income up to ₹4 Lakhs is exempt from tax. However, with the rebate under Section 87A, individuals with a taxable income of up to ₹12 Lakhs pay zero tax.

How is the Standard Deduction calculated in 2026?

The standard deduction has been increased to ₹75,000 for salaried employees under the New Tax Regime for FY 2026-27.

Is the Old Tax Regime still available in 2026?

Yes, taxpayers can still opt for the Old Tax Regime, but the New Tax Regime is the default option. The Old Regime allows for Section 80C and 80D deductions which are largely removed in the New Regime.

Income Tax Calculator India FY 2026-27 (AY 2027-28) - 100% Free

How to Use the Income Tax Calculator for FY 2026-27

Welcome to CalculatIt, India's most trusted free online calculator for tax planning. Our Income Tax Calculator is updated as per the latest Budget 2026 announcements, ensuring you get accurate estimates for the Assessment Year 2027-28.

New Tax Regime Slabs (FY 2026-27)

The government has introduced attractive slabs under the New Regime to help taxpayers save more. If your income is up to ₹12 Lakhs, you may pay effectively zero tax due to enhanced rebates.

Income Slab	Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 to ₹8,00,000	5%
₹8,00,001 to ₹12,00,000	10%
₹12,00,001 to ₹16,00,000	15%
₹16,00,001 to ₹20,00,000	20%
₹20,00,001 to ₹24,00,000	25%
Above ₹24,00,000	30%

Why Choose CalculatIt?

Accuracy: Our algorithm follows the exact Income Tax Department formulas.
Speed: Built with lightweight code for instant results on mobile (Performance Score 95+).
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Frequently Asked Questions (FAQ)

1. What is the standard deduction for FY 2026-27?

The standard deduction for salaried employees has been increased to ₹75,000 under the New Tax Regime, offering immediate relief from your gross taxable income.

2. Which regime is better: Old or New?

For most taxpayers earning under ₹15 Lakhs without major investments (like Home Loans or HRA), the New Regime is beneficial. However, if you claim high deductions under 80C, 80D, and HRA, use our calculator to compare liabilities.

3. How does the rebate u/s 87A work?

In the New Regime, if your taxable income does not exceed the specified limit (enhanced in 2026), your tax liability becomes zero. This effectively makes income up to ₹12 Lakhs tax-free for many individuals.

Income Tax Calculator India