Rates used for tax year 2026-27
The Income-tax Act, 2025 applies from 1 April 2026 and replaces the 1961 Act. It uses the term tax year in place of "previous year" and "assessment year". The Finance Act, 2026 kept the slabs, rebate and standard deduction of the previous year unchanged.
| New regime (default, s.202) | Rate | Old regime, below 60 | Rate |
|---|---|---|---|
| Up to ₹4,00,000 | Nil | Up to ₹2,50,000 (₹3 lakh at 60-79, ₹5 lakh at 80+) | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% | ₹2,50,001 to ₹5,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% | ₹5,00,001 to ₹10,00,000 | 20% |
| ₹12,00,001 to ₹16,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹16,00,001 to ₹20,00,000 | 20% | ||
| ₹20,00,001 to ₹24,00,000 | 25% | ||
| Above ₹24,00,000 | 30% |
- Rebate (old s.87A, now s.156): resident individuals pay no tax if total income is up to ₹12 lakh in the new regime (rebate up to ₹60,000) or ₹5 lakh in the old regime (up to ₹12,500). In the new regime the rebate does not cover tax on special-rate income such as capital gains, and marginal relief applies just above ₹12 lakh.
- Standard deduction: ₹75,000 (new) or ₹50,000 (old) for salary and pension.
- Surcharge: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, 37% above ₹5 crore (old regime only; the new regime stops at 25%). On equity and other capital gains and on dividends it never exceeds 15%. Marginal relief is applied at each step.
- Health and education cess: 4% on tax plus surcharge.
- Capital gains: short-term gains on listed equity 20%; long-term gains on listed equity 12.5% above ₹1.25 lakh a year; other long-term gains 12.5% without indexation (resident individuals and HUFs may choose 20% with indexation for land or buildings bought before 23 July 2024).
- Residents can use any unused basic exemption limit against short-term and long-term gains taxed at special rates. Non-residents cannot.
Sources checked on 26 October 2026: Income Tax Department, tax rates; Finance Act, 2026 (surcharge, the 15% cap, marginal relief and cess).
What this calculator does not cover
- Agricultural income (partial integration), relief under s.89 for salary arrears, foreign tax credit, AMT, presumptive taxation schemes and clubbing of income.
- Interest for late payment or shortfall in advance tax, and late filing fees.
- Brought-forward losses from earlier years: subtract them yourself from the matching income before typing it.
- HUFs, firms and companies: this calculator is for individuals only.