Income Tax Calculator
Estimate your annual tax liability under India's New Tax Regime (FY 2026-27).
Based on India's New Tax Regime (FY 2026-27, AY 2027-28) with the ₹75,000 standard deduction, Section 87A rebate and marginal relief. Estimate only — not tax advice. Consult a tax professional for your actual filing.
What is an income tax calculator, and who needs it?
This calculator estimates the yearly income tax of an individual under India's new tax regime. Enter your annual gross income and it shows your taxable income, the 4% health and education cess, the total tax for the year, the approximate tax per month and an estimated in-hand income after tax.
It is useful for salaried employees comparing job offers, people planning their take-home pay before a salary revision, and anyone who wants a quick idea of their tax before speaking to an accountant. It applies the slabs of FY 2026-27 (AY 2027-28).
Formula used
- Taxable income = Gross income − ₹75,000 standard deduction (never below 0)
- Slab tax: 0% up to ₹4,00,000, 5% on the next ₹4,00,000, 10% on the next ₹4,00,000, 15% on the next ₹4,00,000, 20% on the next ₹4,00,000, 25% on the next ₹4,00,000 and 30% above ₹24,00,000
- If taxable income is ₹12,00,000 or less, tax is nil because of the Section 87A rebate (up to ₹60,000)
- If taxable income is above ₹12,00,000, marginal relief applies: slab tax is capped at the amount by which taxable income exceeds ₹12,00,000
- Cess = 4% × slab tax, and Total tax = Slab tax + Cess
- Monthly tax = Total tax ÷ 12, and In-hand = Gross income − Total tax
Worked examples
Take an annual gross income of ₹15,00,000. Taxable income = 15,00,000 − 75,000 = ₹14,25,000. Slab tax = 4,00,000 × 5% (₹20,000) + 4,00,000 × 10% (₹40,000) + 2,25,000 × 15% (₹33,750) = ₹93,750. Cess = 4% of 93,750 = ₹3,750. Total tax = ₹97,500, which is about ₹8,125 a month, leaving ₹14,02,500 in hand.
Now take ₹12,00,000. Taxable income = 12,00,000 − 75,000 = ₹11,25,000. This is below ₹12,00,000, so the rebate cancels the tax and the result is ₹0, with the full ₹12,00,000 in hand.
For marginal relief, take ₹12,80,000. Taxable income = ₹12,05,000. Slab tax would be ₹60,750, but the income above ₹12,00,000 is only ₹5,000, so the tax is limited to ₹5,000. Cess = ₹200 and total tax = ₹5,200. Enter any of these figures in the calculator to see the same numbers.
Frequently asked questions
Which tax regime and year does this calculator use?
It uses India's new tax regime with the slabs of FY 2026-27 (AY 2027-28), a ₹75,000 standard deduction, the Section 87A rebate, marginal relief and 4% cess. It does not calculate the old regime. Check the Income Tax Department's website for any later changes before relying on the result.
Why does the calculator show zero tax up to ₹12.75 lakh?
Taxable income up to ₹12,00,000 gets a full rebate of up to ₹60,000 in this tool. After the ₹75,000 standard deduction, any gross income up to ₹12,75,000 shows zero tax.
What is marginal relief?
If taxable income is slightly above ₹12,00,000, the tax is limited to the amount by which the income exceeds ₹12,00,000. This stops a small rise in income from causing a large jump in tax. The calculator applies this automatically.
How is the 4% cess calculated?
Cess is 4% of the slab tax (after rebate or marginal relief), not of your income. If the slab tax is ₹93,750, the cess is ₹3,750 and the total tax is ₹97,500.
Can freelancers and business owners use this calculator?
Only as a rough guide. The tool deducts ₹75,000 from every income entered, but the standard deduction is meant for salaried employees and pensioners. Business and professional income follows its own rules.
Will the in-hand figure match my salary slip?
Not exactly. In-hand here is gross income minus estimated income tax. It does not subtract PF, professional tax, insurance premiums or other deductions on your payslip.
Limitations and accuracy
This tool uses the FY 2026-27 new regime slabs. Slabs, the rebate limit and other rules can be revised in later budgets, so confirm the current year's rates with the Income Tax Department before relying on a figure. It applies the ₹12,00,000 rebate with marginal relief, but it leaves out surcharge on very high incomes, the old regime, deductions such as employer NPS, special-rate income such as capital gains, and TDS. This tool is for information only and is not tax advice. Consult a chartered accountant before filing your return.