India Tax Optimizer 2026-27
Compare New vs. Old Regime with updated 2026 Budget Laws
New Regime (2026)
| Std. Deduction | ₹75,000 |
| Employer NPS (14%) | ₹0 |
| Taxable Income | ₹0 |
| Final Tax | ₹0 |
Old Regime
| Std. Deduction | ₹50,000 |
| HRA Exemption | ₹0 |
| Other Deductions | ₹0 |
| Final Tax | ₹0 |
Income Tax Planning FY 2026-27
This Income Tax Calculator for FY 2026-27 (AY 2027-28) is updated with the latest Budget 2026 amendments. Use this tool to compare the New vs. Old tax regimes, incorporating the enhanced ₹75,000 standard deduction and the Section 87A rebate that effectively makes income up to ₹12 Lakhs tax-free under the New Regime. Our optimizer helps salaried professionals maximize savings by calculating HRA exemptions, 80C investments, and the updated 14% Employer NPS benefits.
Is income up to ₹12 Lakhs tax-free in 2026?
Yes. Under the New Tax Regime for FY 2026-27, the Section 87A rebate has been increased to ₹60,000. For individuals with a taxable income of ₹12,00,000 or less, the tax liability becomes zero. After adding the ₹75,000 Standard Deduction, an annual gross salary of up to ₹12.75 Lakhs can result in zero tax.
What are the 2026-27 Standard Deduction limits?
For the financial year 2026-27, the standard deduction is ₹75,000 for the New Regime and ₹50,000 for the Old Regime.
Should I choose the New or Old Regime?
The New Regime is now the default and usually better for those with income up to ₹15 Lakhs or those who don't want the hassle of investment proof. The Old Regime remains beneficial only if your total deductions (HRA, 80C, 80D, Home Loan Interest) exceed ₹4.25 Lakhs per year.
Can I claim HRA in the New Regime?
No, HRA (House Rent Allowance) exemptions are only available under the Old Tax Regime. The New Regime offers lower tax slabs in exchange for giving up exemptions like HRA, LTA, and Section 80C.