India Income Tax Calculator FY 2026-27 | Tax Atlas
Calculate your FY 2026-27 take-home pay, income tax, and full bracket breakdown for India. Free, no signup required.
Enter your gross income above to see your FY 2026-27 India tax breakdown instantly.
Quick example
A salaried employee earning ₹15,00,000 in FY 2026-27 has a taxable income of ₹14,25,000 after the ₹75,000 standard deduction, and pays approximately ₹97,500 in income tax and Health & Education Cess — an effective rate of about 6.5%.
How India income tax works in FY 2026-27 (new regime)
India's new tax regime uses seven progressive slabs from 0% to 30%, with no income tax on the first ₹4,00,000. Salaried employees and pensioners receive a ₹75,000 standard deduction that reduces taxable income before any slab is applied.
Section 87A provides a full rebate on income tax for resident individuals with taxable income up to ₹12,00,000 — giving salaried employees a zero-tax threshold at gross salary up to ₹12,75,000. Crucially, Section 87A also includes marginal relief: when taxable income slightly exceeds ₹12,00,000, the tax payable is capped at the amount by which income exceeds that ceiling. At gross ₹12,75,001, the tax due is approximately ₹1 plus cess — not a sudden ₹60,000 jump. The relief tapers off smoothly as income rises, converging with normal slab rates at around taxable ₹12,70,588.
Once the rebate or marginal relief is applied, a 4% Health & Education Cess is charged on the remaining tax liability. The cess funds public health and education programmes and cannot be offset by any deduction.
The new regime has been the default regime since FY 2023-24 under Section 115BAC. It offers lower slab rates but disallows most deductions (80C, 80D, HRA, LTA, etc.). The old regime permits those deductions but uses higher rates — the better choice depends on the taxpayer's deduction profile.
These rates and thresholds are sourced from Income Tax Department — Tax Rates (incometaxindia.gov.in).
FY 2026-27 India income tax brackets
| Rate | Taxable income (new regime) |
|---|---|
| 0% | Up to ₹4,00,000 |
| 5% | ₹4,00,000 – ₹8,00,000 |
| 10% | ₹8,00,000 – ₹12,00,000 |
| 15% | ₹12,00,000 – ₹16,00,000 |
| 20% | ₹16,00,000 – ₹20,00,000 |
| 25% | ₹20,00,000 – ₹24,00,000 |
| 30% | Over ₹24,00,000 |
Applies to taxable income after the ₹75,000 standard deduction (salaried employees). Surcharge for income above ₹50 lakh not included. Source: Income Tax Department, incometaxindia.gov.in.
Frequently asked questions
- How is India income tax calculated under the new regime in FY 2026-27?
- Income up to ₹4,00,000 is tax-free. The next ₹4,00,000 (up to ₹8L) is taxed at 5%, the next ₹4,00,000 (up to ₹12L) at 10%, and so on up to 30% above ₹24,00,000. For salaried employees, a ₹75,000 standard deduction is subtracted from gross salary to arrive at taxable income before slabs are applied.
- What is the Section 87A rebate?
- Section 87A provides a full rebate on income tax if your taxable income does not exceed ₹12,00,000. The maximum rebate is ₹60,000 — equal to the tax on exactly ₹12,00,000. If eligible, the rebate reduces your income tax liability to zero before the 4% cess is calculated.
- What is Section 87A marginal relief, and is there really no cliff?
- There is no hard cliff. Section 87A includes a marginal relief provision: when taxable income exceeds ₹12,00,000, tax is capped at the amount by which income exceeds that ceiling. So at gross ₹12,75,001 (taxable ₹12,00,001), the tax due is approximately ₹1 plus 4% cess — not ₹60,000+. Tax rises smoothly from ₹0 as income grows above ₹12,75,000, converging with normal slab rates at around taxable ₹12,70,588 (gross ≈ ₹13,46,000). Beyond that point, regular slab calculations apply.
- What is the Health & Education Cess?
- The Health & Education Cess is a 4% charge levied on net income tax after the Section 87A rebate. It is not a slab — it applies to the total tax payable. The cess funds public health and education schemes and has been at 4% since FY 2018-19.
- New regime vs old regime — which is better?
- The new regime generally benefits taxpayers with limited deductions. If your total deductions under 80C, 80D, HRA, LTA and other sections are substantial, the old regime may result in lower tax. The crossover point depends on your income and deduction profile — consult a Chartered Accountant for personalised advice.
- Does this calculator include surcharge?
- No. Surcharge applies to incomes above ₹50,00,000 (at 10% for ₹50L–₹1Cr, 15% for ₹1Cr–₹2Cr, and higher above that). Surcharge is not included in this v1 calculator. For incomes above ₹50 lakh, actual tax will be higher than shown.
- Is this a professional tax estimate?
- No. This calculator provides estimates for informational purposes only and does not constitute professional tax advice. Consult a Chartered Accountant (ICAI) or tax professional for advice specific to your situation.
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