Total tax payable by a salaried individual under the new tax regime for FY 2026-27 (AY 2027-28), after the ₹75,000 standard deduction and the Section 87A rebate. Use the calculator above to compare the old regime with your own 80C / 80D / HRA deductions.
Under the new regime, the Section 87A rebate means a salaried person pays zero tax up to ₹12.75 lakh gross salary. For example, tax on a ₹15 lakh salary is about ₹97,500, and on ₹20 lakh about ₹1,92,400 (including 4% cess).
| Gross salary | Taxable income | Income tax | + 4% cess | Total tax | Effective rate |
|---|---|---|---|---|---|
| ₹6 lakh | ₹5,25,000 | Nil (rebate) | — | ₹0 | 0.0% |
| ₹8 lakh | ₹7,25,000 | Nil (rebate) | — | ₹0 | 0.0% |
| ₹10 lakh | ₹9,25,000 | Nil (rebate) | — | ₹0 | 0.0% |
| ₹12 lakh | ₹11,25,000 | Nil (rebate) | — | ₹0 | 0.0% |
| ₹12.75 lakh | ₹12,00,000 | Nil (rebate) | — | ₹0 | 0.0% |
| ₹15 lakh | ₹14,25,000 | ₹93,750 | ₹3,750 | ₹97,500 | 6.5% |
| ₹18 lakh | ₹17,25,000 | ₹1,45,000 | ₹5,800 | ₹1,50,800 | 8.4% |
| ₹20 lakh | ₹19,25,000 | ₹1,85,000 | ₹7,400 | ₹1,92,400 | 9.6% |
| ₹25 lakh | ₹24,25,000 | ₹3,07,500 | ₹12,300 | ₹3,19,800 | 12.8% |
| ₹30 lakh | ₹29,25,000 | ₹4,57,500 | ₹18,300 | ₹4,75,800 | 15.9% |
| ₹40 lakh | ₹39,25,000 | ₹7,57,500 | ₹30,300 | ₹7,87,800 | 19.7% |
| ₹50 lakh | ₹49,25,000 | ₹10,57,500 | ₹42,300 | ₹10,99,800 | 22.0% |
New-regime slabs FY 2026-27: nil up to ₹4L, 5% ₹4–8L, 10% ₹8–12L, 15% ₹12–16L, 20% ₹16–20L, 25% ₹20–24L, 30% above ₹24L, plus 4% Health & Education Cess. Assumes a salaried individual with only the ₹75,000 standard deduction and no other income. Figures exclude surcharge (applies above ₹50 lakh income) and the marginal relief available just above ₹12 lakh. Educational tool — not tax advice; verify against the latest Finance Act or a tax professional.
Compare old vs new tax regime side-by-side for FY 2026-27. Includes 80C, 80D, HRA, standard deduction, and Section 87A rebate.
Better choice for you
Effective tax rate: 6.5%
The new regime wins because your deductions don't add up to enough to offset its lower base rates. To benefit from the old regime, you would need to claim more total deductions than you currently are.
| Income Range | Tax Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4-8 lakh | 5% |
| ₹8-12 lakh | 10% |
| ₹12-16 lakh | 15% |
| ₹16-20 lakh | 20% |
| ₹20-24 lakh | 25% |
| Above ₹24 lakh | 30% |
Plus 4% Health & Education Cess on tax. Section 87A rebate up to ₹60,000 (effective tax-free up to ₹12 lakh).
Track your investments, deductions, and tax liability throughout the year — not just at filing time. Richify AI helps you optimise your 80C, 80D, and HRA claims based on your real numbers.
Download Richify — It's FreeUnder the new tax regime (FY 2026-27): up to ₹4 lakh = nil; ₹4-8 lakh = 5%; ₹8-12 lakh = 10%; ₹12-16 lakh = 15%; ₹16-20 lakh = 20%; ₹20-24 lakh = 25%; above ₹24 lakh = 30%. With the Section 87A rebate, taxpayers earning up to ₹12 lakh effectively pay zero tax under the new regime. Old regime slabs: up to ₹2.5 lakh nil, ₹2.5-5 lakh at 5%, ₹5-10 lakh at 20%, above ₹10 lakh at 30%. A 4% Health and Education Cess is added on top.
It depends on your deductions. The new regime has lower base rates and the ₹12 lakh tax-free threshold (post-rebate), but you cannot claim 80C, 80D, HRA, or LTA. The old regime allows these deductions but has higher rates. Rule of thumb: if you claim more than ₹3-4 lakh in total deductions (80C ₹1.5 lakh + 80D ₹25k-1 lakh + HRA + home loan interest), the old regime usually wins. Below that, the new regime wins. Use this calculator to compare both for your specific case.
Under the new regime, Section 87A rebate is up to ₹60,000 — meaning total tax liability up to ₹60,000 is fully waived for resident individuals with income up to ₹12 lakh. Effectively, no tax is payable up to ₹12 lakh under new regime. Under the old regime, the rebate is ₹12,500, making income up to ₹5 lakh tax-free. Above the rebate threshold, regular slab tax applies.
Yes. The standard deduction of ₹75,000 (new regime) or ₹50,000 (old regime) for salaried individuals applies in FY 2026-27. This is automatic — you don't need to submit any proof. It's deducted from your salary before tax slabs apply. Pensioners also get the standard deduction.
Under the old regime: Section 80C (up to ₹1.5 lakh — covers EPF, PPF, ELSS, life insurance premium, home loan principal, NSC, 5-year FD, NPS Tier 1 up to ₹50k extra under 80CCD(1B)). Section 80D (health insurance — ₹25k self/family, ₹50k for senior parents). HRA (House Rent Allowance) per actual rent vs metro/non-metro formula. Home loan interest under Section 24(b) up to ₹2 lakh. Education loan interest under 80E (no cap). Standard deduction ₹50,000 for salaried.
Salaried individuals (no business income): yes, you can switch between old and new regime every financial year by indicating your choice in your tax return. Self-employed / business income: you can opt out of the new regime once but switching back later is restricted under Section 115BAC. Most salaried employees should run this calculator each year before deciding.
For a salaried individual under the new regime (FY 2026-27), a ₹15 lakh salary has ₹14.25 lakh taxable after the ₹75,000 standard deduction. The income tax works out to ₹93,750, plus 4% Health & Education Cess of ₹3,750 — a total of about ₹97,500, an effective rate of roughly 6.5%. There's no tax at all up to ₹12.75 lakh gross salary because of the Section 87A rebate. The old regime could be lower if you claim large 80C/80D/HRA deductions — compare both above.
Under the new regime FY 2026-27, a ₹20 lakh salary leaves ₹19.25 lakh taxable after the ₹75,000 standard deduction. Income tax is ₹1,85,000 plus ₹7,400 cess = about ₹1,92,400 total (effective rate ~9.6%). At ₹25 lakh the total is roughly ₹3,19,800 and at ₹30 lakh about ₹4,75,800. These exclude surcharge, which starts above ₹50 lakh income. See the ready-reckoner table below for every salary band.