Estimate your income tax
New tax regime, Tax Year 2026-27 (1 April 2026 – 31 March 2027), for residents of India.
Step by step
Before rounding to the nearest ₹10. Your return rounds taxable income and tax to the nearest ₹10.
How we calculate this
Taxable income = salary or pension − standard deduction (₹75,000, or the salary if lower) + other income
Slab tax (new regime): 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%
Rebate: taxable income up to ₹12 lakh → no tax.
Above ₹12 lakh, the tax is never more than the income above ₹12 lakh (marginal relief).
Surcharge on the tax: above ₹50 lakh 10% · above ₹1 crore 15% · above ₹2 crore 25% (the new-regime maximum),
with marginal relief so crossing a threshold never costs more than the extra income.
Health and education cess: 4% of tax + surcharge.
Still to pay = estimated tax − tax already paid (a negative number means a possible refund).Calculation version 1.0 (rules 0.6, as of 2026-10-06) · Sources: Finance Bill 2026, Memorandum (slab rates under section 202, surcharge, cess); the standard deduction and rebate rules (sections 19 and 156 of the Income-tax Act, 2025) come from published secondary summaries, checked 7 Oct 2026, not yet from the section text itself. Not covered: the old regime and its deductions, capital gains and other special-rate income, business income, house property, family pension, agricultural income, non-residents, employer NPS contributions and other deductions, interest for late payment.
Related: Salary: CTC to take-home · CTC, gross and take-home · NPS calculator
How to read your income tax estimate
This tool estimates your income tax under the new tax regime. The Income-tax Act, 2025 came into force on 1 April 2026. It replaces “previous year” and “assessment year” with one term, “Tax Year”. The first one, Tax Year 2026-27, runs from 1 April 2026 to 31 March 2027.
What the numbers mean
Taxable income is what the tax is worked out on. From salary or pension we subtract the ₹75,000 standard deduction, a fixed amount (or your whole salary, if it is lower). Interest and other income are added in full.
Estimated tax for the year is the tax after any rebate and relief, plus surcharge and cess.
Still to pay appears when you enter tax already paid. That means TDS (tax deducted at source: tax your employer or bank cuts and pays to the government for you) and advance tax. They change what you still owe, never the tax itself. If you paid more, the box says “Possible refund”. The “Step by step” table stops before rounding; your return rounds taxable income and tax to the nearest ₹10.
How the official rules work
The new regime is the default under section 202. A slab is a band of income with its own rate. Each rate applies only to the part of income inside its band:
| Taxable income | Rate |
|---|---|
| Up 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% |
Next comes the rebate, a cut in the tax itself. For a resident with taxable income up to ₹12 lakh, it removes the tax. Above ₹12 lakh, marginal relief applies: your tax can’t be more than the income above ₹12 lakh. Without it, a few rupees more could cost thousands in tax.
Surcharge is extra tax on high incomes, charged as a share of the tax: 10% above ₹50 lakh of taxable income, 15% above ₹1 crore and 25% (the new-regime maximum) above ₹2 crore. Marginal relief works here too: past a threshold, tax plus surcharge can’t rise by more than the income above it. Last comes cess, a 4% charge on tax plus surcharge for health and education. Cess gets no marginal relief.
Sources: Finance Bill 2026, Memorandum (section 202 rates; surcharge and cess rules); Income Tax Department: the 2025 Act comes into force. Checked 7 Oct 2026.
Worked example
Meera, a fictional nurse in Pune, earns ₹13,00,000 in salary. Her employer cut ₹30,000 as TDS.
| Step | ₹ |
|---|---|
| Salary | 13,00,000 |
| − Standard deduction | 75,000 |
| Taxable income | 12,25,000 |
| Tax by slabs | 63,750 |
| − Marginal relief above ₹12 lakh | 38,750 |
| + Cess (4%) | 1,000 |
| Estimated tax for the year | 26,000 |
Relief caps her tax at ₹25,000, the income above ₹12 lakh. After ₹30,000 of TDS, the tool shows a possible refund of ₹4,000.
A salary of ₹12,75,000 leaves exactly ₹12 lakh taxable, so the tax is ₹0. At ₹16,00,000 the estimate is ₹1,13,100. At ₹51,00,000, taxable income is ₹50,25,000; marginal relief cuts the surcharge to ₹17,500, and the total is ₹11,49,200.
What this tool doesn’t do
It covers residents with salary or a pension from an employer, plus other income taxed at slab rates. You can still opt out into the old regime, but this tool doesn’t calculate it. Non-residents get “We need more information”. So does anyone who ticks capital gains, business or freelance income, rent from a house they own, income from outside India, lottery or betting winnings, losses brought forward, family pension or agricultural income, because those follow other rules. Other deductions and interest for late payment are left out.
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Frequently asked questions
Is income up to ₹12 lakh tax-free in the new regime?
For a resident, yes, if your taxable income is up to ₹12 lakh. Taxable income is what is left after deductions. The rebate, a cut in the tax itself, then removes the whole slab tax. With a salary, you first subtract the ₹75,000 standard deduction. So a salary of ₹12,75,000 gives taxable income of exactly ₹12 lakh and a tax of ₹0 for Tax Year 2026-27.
What is marginal relief just above ₹12 lakh?
Marginal relief stops a small rise in income from causing a big jump in tax. Above ₹12 lakh of taxable income, your tax can't be more than the income above ₹12 lakh. Take a salary of ₹13,00,000. Taxable income is ₹12,25,000, and slab tax would be ₹63,750. Relief caps it at ₹25,000. With 4% cess, the estimate is ₹26,000.
What is the difference between surcharge and cess?
Surcharge is extra tax for high incomes. It is 10% of the tax above ₹50 lakh of taxable income, 15% above ₹1 crore and 25% above ₹2 crore, the new-regime maximum. Marginal relief applies at each threshold. Cess is a 4% charge on tax plus surcharge, for health and education. Unlike surcharge, cess gets no marginal relief.
My employer already cut TDS. Why is the tax still the same?
TDS (tax deducted at source) is tax paid in advance on your behalf. It counts towards your tax but does not change how much tax you owe for the year. Enter it under "Tax already paid" and the tool shows what is still to pay. For example, on a ₹26,000 estimate with ₹30,000 TDS, it shows a possible refund of ₹4,000.
Why does the calculator say it needs more information?
It works only for residents of India with salary, a pension from an employer and other income taxed at slab rates. Some income follows other rules: capital gains, business or freelance income, rent from your own house, income from outside India, lottery or betting winnings, losses brought forward, family pension or agricultural income. Showing a figure for those cases could mislead you. The official calculator at incometax.gov.in or a tax professional can cover them.
Does this calculator cover the old tax regime?
No. The new regime is the default for Tax Year 2026-27. You can still choose the old regime by opting out, but this tool doesn't calculate it or its deductions. If you are comparing the two, use the official calculator at incometax.gov.in or ask a tax professional. Our estimate stops before rounding, while your return rounds taxable income and tax to the nearest ₹10.