🧾 Income Tax Calculator (FY 2026-27)
Updated for the latest law: Budget 2026 kept the new-regime slabs unchanged from Budget 2025's big revamp — income up to ₹12 lakh (₹12.75 lakh for salaried, after the ₹75,000 standard deduction) pays zero tax via the ₹60,000 Section 87A rebate. The calculator also handles the salary components that stay tax-free even in the new regime: employer NPS under 80CCD(2), employer PF and superannuation (combined ₹7.5 lakh cap), and — new from FY 2026-27 under the Income-tax Rules 2026 — food coupons/meal vouchers at ₹200 per meal (~₹1,05,600 a year) in both regimes. It computes both regimes side-by-side, with marginal relief, surcharge and 4% cess, and tells you which saves more.
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How it's calculated
New regime slabs (FY 2025-26 & 2026-27): 0–4L nil · 4–8L 5% · 8–12L 10% · 12–16L 15% · 16–20L 20% · 20–24L 25% · above 24L 30%. Old regime: 0–2.5L nil · 2.5–5L 5% · 5–10L 20% · above 10L 30% (higher exemption for seniors). Rebate: new ₹60,000 up to ₹12L taxable (with marginal relief above), old ₹12,500 up to ₹5L. Surcharge from ₹50L; 4% health & education cess on top. Tax-free in BOTH regimes: employer NPS 80CCD(2) (up to 14% of basic+DA), employer PF + superannuation (aggregate ₹7.5L/yr cap across all three), and meal vouchers ₹200/meal from FY 2026-27 (FY 2025-26: old regime only, ₹50/meal).
Frequently asked questions
Is income up to ₹12 lakh really tax-free in FY 2026-27?
Yes — under the new regime, taxable income up to ₹12 lakh gets a full Section 87A rebate (₹60,000), so tax is zero. Salaried taxpayers also get the ₹75,000 standard deduction, making salary up to ₹12.75 lakh tax-free. Marginal relief ensures income slightly above ₹12L pays only the excess.
Did Budget 2026 change the tax slabs?
No. Budget 2026 made no changes to slab rates for FY 2026-27 — the slabs introduced by Budget 2025 continue, now under the new Income-tax Act, 2025 (which renumbered sections but kept rates identical).
What stays tax-free under the new regime?
Quite a lot: the ₹75,000 standard deduction, employer NPS contributions under Section 80CCD(2) (up to 14% of basic+DA for all employees), employer PF and approved-superannuation contributions (tax-free up to a combined ₹7.5 lakh a year across NPS+PF+superannuation), gratuity and leave encashment within limits, the car fuel/driver perquisite concession (see the FAQ below) — and, from FY 2026-27 under the Income-tax Rules 2026, food coupons/meal vouchers up to ₹200 per meal (about ₹1,05,600 a year). Employees' own 80C/80CCD(1B) investments and HRA remain old-regime-only.
Are food coupons tax-free in the new regime?
From FY 2026-27, yes — the Income-tax Rules 2026 (effective 1 April 2026) raised the meal-voucher exemption to ₹200 per meal and extended it to the new regime, worth up to ~₹1,05,600 a year. For FY 2025-26 and earlier, the exemption (₹50/meal, ~₹26,400/yr) was available only in the old regime. The calculator applies the correct rule for the year you pick.
Are car petrol expenses and driver salary tax-free?
Partly, in BOTH regimes — when a car is used for both official and personal purposes, fuel/maintenance and driver costs borne by the employer are taxed as a perquisite at small fixed deemed values instead of actuals. From FY 2026-27 (Income-tax Rules 2026): if the employer provides the car and pays running costs, only ₹5,000/month (engine up to 1.6L) or ₹7,000/month (above 1.6L), plus ₹3,000/month for a driver, is added to taxable salary — whatever the employer actually spends beyond that is effectively tax-free. (Until FY 2025-26 these deemed values were ₹1,800/₹2,400 plus ₹900 for the driver.) If you own the car and the employer reimburses petrol/driver, the reimbursement is taxable only after deducting similar deemed amounts — and with a proper log book showing fully-official use, it is entirely tax-free. This calculator does not model car perquisites: simply exclude the tax-free portion from the income you enter above.
Which regime is better for me?
The new regime is the default and wins for most people after the 2025 revamp. The old regime can still win if your deductions (80C, 80D, home-loan interest, HRA) are very large relative to income — this calculator compares both with your actual numbers.
Does this calculator handle surcharge?
Yes — 10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr (the new regime caps surcharge at 25%; the old regime adds 37% above ₹5Cr). Capital gains taxed at special rates are excluded — use the Capital Gains calculator.
