Income Tax Calculator 2026
Calculate and compare Old vs New Tax Regime for FY 2026-27. Find out which regime saves you more tax with deductions (80C, 80D, HRA).
Income Details
₹12,00,000
Deductions (Old Regime)
₹1,50,000
₹25,000
₹0
₹0
Calculate Your Income Tax
Enter your income details and click "Calculate Tax" to see results
What is an Income Tax Calculator?
An Income Tax Calculator is a free online tool that helps you calculate your income tax liability for a financial year based on your annual income, applicable tax regime (Old or New), and eligible deductions. Our Income Tax Calculator 2026 is specifically designed for Indian taxpayers filing returns for FY 2026-27 (Assessment Year 2027-28).
With the introduction of the New Tax Regime in recent years, taxpayers now have the option to choose between two different tax structures. Our calculator allows you to compare both regimes side-by-side and recommends the regime that minimizes your tax liability, helping you save maximum money.
Whether you're a salaried employee, business owner, or freelancer, this calculator provides accurate tax calculations including base tax, health and education cess, and your final take-home salary after all deductions.
Old Tax Regime vs New Tax Regime - Which is Better?
Old Tax Regime
New Tax Regime
Pro Tip: If your total deductions (80C + 80D + HRA) exceed ₹2.5-3 lakhs, Old Regime is usually better. Otherwise, New Regime might save you more tax. Use our calculator's comparison feature to know for sure!
Complete Guide to Income Tax Deductions (Old Regime)
Section 80C - Investment Deductions (Up to ₹1.5 Lakh)
Section 80C is the most popular tax-saving provision. You can claim deductions up to ₹1.5 lakh annually by investing in:
- • Public Provident Fund (PPF)
- • Equity Linked Savings Scheme (ELSS)
- • National Savings Certificate (NSC)
- • Tax Saver Fixed Deposits
- • Life Insurance Premiums
- • Employee Provident Fund (EPF)
- • Home Loan Principal Repayment
- • Children's Tuition Fees
Section 80D - Health Insurance Deductions (Up to ₹25K-50K)
Claim deductions for health insurance premiums paid for yourself, spouse, children, and parents:
- • Self, Spouse, Children: Up to ₹25,000
- • Parents (below 60 years): Additional ₹25,000
- • Parents (senior citizens): Additional ₹50,000
- • Maximum Total: ₹75,000 (if parents are senior citizens)
HRA (House Rent Allowance) Exemption
If you live in a rented house and receive HRA from your employer, you can claim exemption. The exemption is the minimum of:
- • Actual HRA received
- • 50% of salary (metro cities) or 40% (non-metro)
- • Actual rent paid minus 10% of salary
Standard Deduction - ₹50,000 (Available in Both Regimes)
All salaried individuals get a standard deduction of ₹50,000 automatically. This is deducted from your gross salary before calculating taxable income and is available in both Old and New Tax Regimes.
Top Tax Saving Tips for FY 2026-27
1. Maximize 80C Investments
Invest the full ₹1.5 lakh limit in tax-saving instruments like PPF, ELSS, or NSC to save up to ₹46,800 in taxes (30% bracket).
2. Buy Health Insurance
Get health insurance for yourself and parents. Save up to ₹75,000 under 80D while securing your family's health.
3. Claim HRA if Renting
If you live in a rented house, claim HRA exemption. Submit rent receipts and landlord PAN to your employer.
4. Compare Regimes Annually
Use our calculator to compare both regimes every year. Your optimal choice may change as your income and investments evolve.
5. Plan Early in the Year
Don't wait until March 31st. Plan your tax-saving investments at the start of the financial year for better returns.
6. Education Loan Interest
If you have an education loan, claim deduction on interest paid under Section 80E. No maximum limit!
Frequently Asked Questions (FAQs)
What are the income tax slabs for FY 2026-27?
For Old Regime: 0-2.5L (0%), 2.5-5L (5%), 5-10L (20%), Above 10L (30%). For New Regime: 0-3L (0%), 3-6L (5%), 6-9L (10%), 9-12L (15%), 12-15L (20%), Above 15L (30%). Both regimes include 4% health and education cess.
Which tax regime should I choose - Old or New?
Choose Old Regime if you have significant deductions (80C, 80D, HRA) exceeding ₹2.5-3 lakhs annually. Choose New Regime if you have minimal deductions or want simpler tax filing. Use our calculator's comparison feature to see which saves you more money.
What is Section 80C and what is the maximum deduction limit?
Section 80C allows deductions up to ₹1.5 lakh for investments in PPF, ELSS, NSC, EPF, tax-saver FDs, life insurance premiums, principal repayment of home loans, tuition fees, and more. This deduction is only available under the Old Tax Regime.
What is Section 80D for health insurance?
Section 80D allows deductions for health insurance premiums: up to ₹25,000 for self, spouse, and children, and an additional ₹25,000 (₹50,000 for senior citizens) for parents. This deduction is only available under the Old Tax Regime.
Can I claim HRA exemption in the New Tax Regime?
No, HRA (House Rent Allowance) exemption is not available in the New Tax Regime. HRA, along with other deductions like 80C and 80D, can only be claimed under the Old Tax Regime.
What is the standard deduction for salaried employees?
Standard deduction of ₹50,000 is available for salaried individuals in both Old and New Tax Regimes. This is automatically deducted from your gross salary before calculating taxable income.
What is Health and Education Cess?
A 4% cess is levied on the calculated income tax amount. This cess is applicable in both Old and New Tax Regimes and goes towards funding health and education initiatives by the government.
Can I switch between Old and New Tax Regime every year?
Yes, salaried individuals can switch between Old and New Tax Regime every financial year. However, if you have business income, you can switch only once in your lifetime. It's recommended to evaluate both regimes annually.
What are the best tax-saving investments under Section 80C?
Popular 80C investments include: PPF (safe, 7-8% returns), ELSS mutual funds (market-linked, 3-year lock-in), NSC, tax-saver FDs, life insurance premiums, EPF contributions, and principal repayment of home loans. Maximum combined limit is ₹1.5 lakh.
How is take-home salary calculated after income tax?
Take-home salary = Annual Gross Income - Total Tax Payable. Total tax includes base tax calculated as per slabs plus 4% cess. Our calculator shows your monthly take-home by dividing the annual take-home by 12.
How to Use the Income Tax Calculator
Enter Income
Input your annual gross income (CTC)
Choose Regime
Select Old, New, or Compare both regimes
Add Deductions
Enter 80C, 80D, HRA amounts (for Old Regime)
Get Results
View tax breakdown and take-home salary
Why Use ToolsPad.in Income Tax Calculator?
- ✓ 100% Accurate: Updated with latest FY 2026-27 tax slabs and rules
- ✓ Compare Regimes: Side-by-side comparison of Old vs New regime
- ✓ All Deductions: Supports 80C, 80D, HRA, and other deductions
- ✓ Detailed Breakdown: See tax calculation slab-wise
- ✓ Smart Recommendations: Know which regime saves you more
- ✓ Tax Saving Tips: Get personalized investment suggestions
- ✓ Free & Easy: No registration, instant results
- ✓ Mobile Friendly: Calculate taxes on any device
Trusted by 4,500+ Indian Taxpayers - ToolsPad.in is your one-stop hub for all financial calculators. Calculate EMI, SIP returns, PPF maturity, GST, and more with our accurate, easy-to-use tools.