Aarambha: Learn & InvestIncome tax is the share of what you earn that goes to the government. Each slice of your income is taxed at its own rate, so only the part above each step pays the higher rate. Put in your salary to see your tax slab by slab, and what the other regime would cost you.
Your numbers
Eighteen lakh rupees
Zero rupees
Interest, rent or freelance profit. Not capital gains.
Your tax, new regime
₹1,50,800
About ₹12,567 a month.
- Taxable income
- ₹17,25,000
- In the old regime
- ₹3,04,200 (₹1,53,400 more)
- Old regime wins only above deductions of
- ₹6,41,670
Tax year 2026-27 (FY 2026-27, AY 2027-28) · Checked 5 November 2026 by Prashanth Sekhar
New-regime slabs
| Taxable income | Rate |
|---|---|
| ₹0 to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
The rebate makes taxable income up to ₹12 lakh tax-free, so salaries up to ₹12.75 lakh pay nothing.
Estimates for education, not tax, legal or investment advice. Report a wrong number
Understand your result
Tax is worked out slab by slab: each band of your taxable income is taxed at its own rate, so only the part above a threshold pays the higher rate. A raise never leaves you with less after tax.
You choose a regime each year. The new regime has lower rates and no tax up to ₹12 lakh of taxable income, but almost no deductions; the old regime lets you take off 80C, 80D, HRA and home-loan interest. The calculator shows what the other regime would cost, and the deductions at which the old one would win.
A common mistake
Picking the old regime because you have "a lot of deductions" without adding them up. For most salaries, you need well over ₹3 lakh of deductions before the old regime wins.
How it's worked out
Taxable income = salary − standard deduction + other income − allowed deductions. Tax = slab tax − rebate + surcharge + 4% cess.
Assumptions
- Tax year 2026-27, residents below 60, slab-rate income only (no capital gains). Includes the standard deduction, the rebate with marginal relief, surcharge above ₹50 lakh and 4% cess. Rounded to ₹10.
- Deductions are taken as eligible and within their limits.
Sources
- Income-tax Act, 2025, s.202: tax rates
- Income-tax Act, 2025, s.156: rebate
- Income-tax Act, 2025, s.19: standard deduction
- Finance Act, 2026: old-regime rates, surcharge, cess
Updates
- 5 November 2026: Published. Rules checked against the Income-tax Act, 2025, the Finance Act, 2026 and the official October to December 2026 rates.
Questions people ask
How much tax is there on a ₹12 lakh salary in the new regime?
None. After the ₹75,000 standard deduction, taxable income is ₹11.25 lakh, which is under the ₹12 lakh rebate limit. Salaries up to ₹12.75 lakh pay no tax.
What is tax year 2026-27?
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, and "previous year" and "assessment year" became one "tax year". Tax year 2026-27 is what used to be called FY 2026-27, AY 2027-28. Section numbers changed too: the rebate is now section 156 and the rates are in section 202, so older articles may cite the old numbers.
Can I switch between the regimes?
Salaried people can choose each year when they file. People with business or professional income can switch far less freely, so they should choose with care.
Are capital gains included?
No. Capital gains and other special-rate income are taxed separately and are left out here.