Income Tax Calculator for Government Employees

New Tax Regime vs Old Tax Regime slab rates for individuals, Section 87A rebate, senior citizen slabs, 4% Health & Education Cess, examples and a quick taxable-income calculator.

₹4LNew Regime Nil Slab
₹12L87A Rebate Limit*
₹60,000New Regime 87A Rebate*
4%Health & Education Cess

🧮 Income Tax Slab Calculator 2026

Enter taxable income after eligible deductions/exemptions. This simplified calculator applies slab tax, Section 87A where applicable, and 4% cess. Surcharge and special-rate income are excluded.

Tax Regime
New Tax Regime
Old Tax Regime
Taxable Income (₹)

Enter taxable income, not CTC or gross salary.
Age Category
Below 60 years60 to below 80 years80 years or above
Age affects Old Regime basic exemption limits.
⚡ Calculate Income Tax
Selected Regime—
Taxable Income—
Tax Before Rebate—
Section 87A Rebate—
Tax After Rebate—
Health & Education Cess @ 4%—
Estimated Total Tax—

Income Tax Slabs 2026 – Complete Guide

AY 2026–27 slab rates for salaried individuals under New and Old Tax Regimes

📊 New Tax Regime Slabs – AY 2026–27

The New Tax Regime under Section 115BAC is the default regime for eligible individual taxpayers. For AY 2026–27, the Income Tax Department publishes a seven-band structure beginning with a nil slab up to ₹4 lakh and reaching 30% above ₹24 lakh.

Key point: under the New Regime, the same slab structure applies across the age categories shown on the Income Tax Department page. The age-based higher basic exemption limits remain an Old Regime feature.

📜 Old Tax Regime Slabs – Below 60 Years

Under the Old Tax Regime, an individual below 60 years has a basic exemption limit of ₹2.5 lakh. The old structure has fewer bands than the New Regime but supports the broader deduction and exemption framework associated with the old system.

For a salaried employee, the comparison should be made on taxable income after the deductions and exemptions actually available under each regime. Comparing the same gross salary against both slab tables without adjusting taxable income can be misleading.

💸 Section 87A Rebate – Why ₹12 Lakh Can Still Produce Nil Tax

For AY 2026–27, the Income Tax Department states that the New Regime Section 87A rebate is up to ₹60,000 where total income does not exceed ₹12 lakh, subject to the conditions that apply to the rebate. This is different from saying that the basic exemption slab itself is ₹12 lakh: the nil slab is ₹4 lakh, while the rebate can eliminate the calculated tax for eligible resident individuals up to the stated income threshold.

Under the Old Regime, the Income Tax Department page shows a Section 87A rebate of up to ₹12,500 where taxable income does not exceed ₹5 lakh for eligible resident individuals.

Important distinction: slab rate, rebate and deduction are different concepts. A slab determines how tax is computed; a rebate reduces computed tax; a deduction generally reduces taxable income before slab tax is calculated.

👴 Old Regime Slabs for Senior & Super Senior Citizens

The New Regime slab structure is age-neutral on the Income Tax Department page, but the Old Regime continues to show different basic exemption limits for older individuals.

Age 60–79

Senior Citizen – Old Regime

Nil up to ₹3 lakh; 5% from ₹3–5 lakh; 20% from ₹5–10 lakh; 30% above ₹10 lakh.

Age 80+

Super Senior Citizen – Old Regime

Nil up to ₹5 lakh; 20% from ₹5–10 lakh; 30% above ₹10 lakh.

When using the calculator above, the age selector changes only the Old Regime slab limits. If New Regime is selected, the calculator uses the same slab bands regardless of age.

⚖️ New Tax Regime vs Old Tax Regime – How to Compare Correctly

Do not compare tax regimes only by looking at the top rate. Both systems reach 30%, but they reach it at different taxable-income levels and allow different deduction/exemption treatment.

Start with annual gross income, then build taxable income under each regime separately. Under the Old Regime, include only deductions or exemptions you genuinely qualify for. Under the New Regime, use the deductions permitted under that regime. Then apply the slab rates to each taxable-income figure.

For employees with HRA, first calculate the eligible exemption using the HRA Tax Exemption Calculator if the Old Regime is being evaluated. For take-home impact, use the Gross vs Net Salary Calculator after the tax estimate is known.

A useful comparison is annual tax plus cess, not just monthly TDS. TDS is a collection mechanism and may change during the year when declarations, bonus, previous-employer income or deductions are updated.

🧾 Health & Education Cess and Surcharge

The Income Tax Department states that Health & Education Cess is 4% of income tax plus surcharge, if any, under both regimes. The calculator on this page adds 4% cess after the Section 87A rebate calculation.

Surcharge applies at higher income levels and has separate threshold rules. Because surcharge and marginal relief can materially change tax for high-income taxpayers, the quick calculator intentionally excludes surcharge and clearly flags this limitation.

If taxable income is above ₹50 lakh, use a full income-tax computation rather than relying only on the simplified calculator. Special-rate income such as certain capital gains can also require separate treatment.

🧮 Worked Examples – New Regime

Example 1 – Taxable income ₹8 lakh: the first ₹4 lakh is nil. The next ₹4 lakh is taxed at 5%, giving ₹20,000 before rebate. If the taxpayer is eligible for Section 87A and the stated income conditions are met, the rebate can reduce this slab tax to nil.

Example 2 – Taxable income ₹12 lakh: ₹4–8 lakh produces ₹20,000 and ₹8–12 lakh produces ₹40,000, giving ₹60,000 before rebate. The published New Regime rebate is up to ₹60,000 for eligible resident individuals with total income not exceeding ₹12 lakh.

Example 3 – Taxable income ₹16 lakh: slab tax is ₹1.2 lakh before cess: ₹20,000 on the ₹4–8 lakh band, ₹40,000 on ₹8–12 lakh and ₹60,000 on ₹12–16 lakh. Section 87A does not apply once the income condition is exceeded.

Example 4 – Taxable income ₹25 lakh: tax up to ₹24 lakh is ₹3 lakh, then 30% applies to the additional ₹1 lakh, producing ₹3.3 lakh before cess and any surcharge considerations.

📌 Old Regime Worked Examples

Below 60, taxable income ₹5 lakh: tax before rebate is ₹12,500. For an eligible resident individual, the Old Regime Section 87A rebate can reduce this to nil where the taxable-income condition is satisfied.

Below 60, taxable income ₹8 lakh: tax is ₹12,500 on the ₹2.5–5 lakh band plus 20% of ₹3 lakh, giving ₹72,500 before cess. The rebate does not apply because taxable income exceeds ₹5 lakh.

Senior citizen, taxable income ₹8 lakh: the first ₹3 lakh is nil, ₹3–5 lakh is taxed at 5% and ₹5–8 lakh at 20%. This produces ₹70,000 before cess.

Super senior citizen, taxable income ₹8 lakh: the first ₹5 lakh is nil and ₹5–8 lakh is taxed at 20%, producing ₹60,000 before cess.

💼 Salary, CTC and Taxable Income Are Not the Same

CTC is an employer-cost concept, gross salary is the earnings amount before deductions, and taxable income is the amount on which slab tax is ultimately computed after the applicable rules are applied. Entering CTC directly into an income-tax slab calculator can therefore overstate tax.

Use the Salary Breakup Calculator when you need to understand Basic Pay, HRA and other components first. Government employees can also use the Pay Matrix Calculator and DA Calculator to build the salary base before moving to tax.

When comparing job offers, calculate net salary after EPF, Professional Tax and TDS rather than comparing only the CTC headline. The tax slab is one part of the take-home calculation, not the entire result.

🏠 HRA and Income Tax Slabs

HRA can affect taxable income under the Old Regime because an eligible exemption under Section 10(13A) can reduce the salary amount included in taxable income. The final tax is then computed on the reduced taxable income using Old Regime slabs.

Government payroll HRA rates such as X/Y/Z city percentages are a different subject from HRA tax exemption. Use the HRA Rates Chart for payroll reference and the HRA tax-exemption tool for the tax calculation.

If you do not receive HRA but pay rent, Section 80GG is a separate deduction route with its own conditions. It should not be mixed with Section 10(13A).

📆 Which Financial Year and Assessment Year Does This Page Cover?

This page uses the Income Tax Department’s published slab tables for Assessment Year 2026–27, corresponding to income earned in Financial Year 2025–26. The title uses “2026” because these are the slab rates commonly searched during the 2026 filing period.

Always match the slab table to the correct Assessment Year before calculating tax. Using a later year’s slab against an earlier year’s income, or vice versa, can produce a materially wrong answer.

If you are calculating salary tax for a different financial year, confirm that year’s slab rates before relying on this page.

⚠️ Common Income Tax Slab Mistakes

A common mistake is treating the ₹12 lakh New Regime rebate threshold as a ₹12 lakh basic exemption slab. The published nil slab is ₹4 lakh; the Section 87A rebate is a separate mechanism that may reduce eligible tax to nil.

Another mistake is entering gross salary or CTC as taxable income without accounting for the regime’s deductions and exemptions. Tax slabs apply to taxable income, not automatically to the employer’s CTC figure.

Users also forget 4% Health & Education Cess, compare regimes on different salary assumptions, or ignore senior-citizen Old Regime basic exemption limits.

High-income taxpayers should also avoid using a simple slab-only calculator where surcharge, marginal relief or special-rate income applies.

✅ Income Tax Slab Verification Checklist

Confirm Assessment Year, tax regime, age category, residential eligibility for rebate, taxable income and whether any special-rate income is involved.

Calculate slab tax first, then apply the eligible Section 87A rebate, then surcharge if applicable, and finally Health & Education Cess. Keep each step separate so the result can be audited.

If comparing Old and New Regimes, derive taxable income independently under each regime. Do not reuse the same taxable-income number unless the permitted deductions and exemptions genuinely produce the same result.

Save the calculation with Form 16, salary statement or ITR working so the figures can be reproduced later.

🧭 Step-by-Step Tax Calculation Workflow

Start with the correct year. The slab table on this page is for AY 2026–27, so the income period is FY 2025–26. After confirming the year, decide whether you are evaluating the New Tax Regime or the Old Tax Regime. Do not mix a deduction from one regime with slab rates from the other.

Next, arrive at taxable income. For salaried employees, begin with salary income, then apply the exemptions and deductions allowed under the selected regime. If you are using the quick calculator, enter the final taxable-income figure rather than CTC or monthly gross salary.

Apply the slab rates progressively. Only the portion of income inside each band is taxed at that band’s percentage. A taxpayer whose income reaches the 30% slab does not pay 30% on the entire income; lower portions remain taxed at lower slab rates.

After slab tax, check Section 87A eligibility. Then consider surcharge where income is high enough, and finally apply Health & Education Cess. Keeping the sequence separate makes the calculation easier to audit.

📉 Marginal Tax Rate vs Effective Tax Rate

Marginal tax rate is the rate that applies to the next rupee of taxable income inside the current slab. Effective tax rate is total tax divided by total taxable income. These two percentages are usually different.

For example, an income may fall in the 20% or 30% marginal slab while the effective tax rate remains much lower because the earlier income bands were taxed at nil, 5%, 10% or 15%.

This distinction is useful when evaluating a salary hike. A higher salary does not mean every rupee suddenly becomes taxable at the top slab. Only the additional income that falls into the higher band is taxed at that rate.

When comparing two job offers, use annual net income and effective tax rather than judging the offer only from the highest slab label.

💵 TDS vs Final Income Tax

TDS deducted by the employer is an advance collection of income tax. It is not necessarily the final annual tax liability. Employers estimate annual income from salary declarations and spread the expected tax across payroll months.

TDS can change during the year when bonus is paid, salary increases, a previous employer’s income is reported, investment declarations are revised or proofs are rejected. This is why monthly TDS can move even when the tax slab structure itself has not changed.

At year end, Form 16 summarises salary income, exemptions, deductions and TDS. The final return calculation should reconcile the total tax liability against tax already deducted or paid.

If TDS is higher than the final liability, a refund may arise after return processing. If it is lower, additional tax may be payable.

🏦 EPF, NPS and Taxable Income

Retirement contributions can affect cash take-home and, depending on the applicable provision and regime, may also affect taxable income. These should not be confused with income-tax slab percentages themselves.

For salary planning, first identify whether a contribution is employee-side, employer-side or both. Then determine whether it is deductible, exempt or taxable under the selected tax regime before reducing taxable income.

Government employees comparing NPS and pension structures can use the NPS vs Old Pension guide. Private-sector employees can keep EPF deductions separate from the slab calculation and then reconcile them in the take-home salary tool.

Do not subtract every payroll deduction from taxable income. Loan EMI, voluntary recovery and many other salary deductions reduce bank credit but do not automatically reduce income tax.

🧾 Standard Deduction, Exemptions and Deductions

A tax slab is applied only after taxable income has been determined. This is why two employees with the same gross salary can have different tax liabilities if their permitted deductions or exemptions differ.

Under the Old Regime, taxpayers may evaluate items such as HRA exemption and eligible deductions before applying the old slab table. Under the New Regime, the permitted deduction framework is narrower, so taxable income is built differently.

Always separate three concepts: exemption removes eligible income from the taxable base, deduction reduces taxable income subject to the relevant provision, and rebate reduces the tax after it has been calculated.

Using these terms correctly helps avoid common spreadsheet errors where a rebate is incorrectly subtracted from income or a deduction is incorrectly subtracted from final tax.

📊 Comparing Salary Levels Under the New Regime

At lower taxable incomes, the wider nil and lower-rate bands can keep slab tax modest. As taxable income rises through ₹8 lakh, ₹12 lakh, ₹16 lakh, ₹20 lakh and ₹24 lakh, each additional block enters a progressively higher rate.

The structure is progressive rather than flat. Tax up to ₹24 lakh accumulates across the lower bands before the 30% rate starts on income above ₹24 lakh.

For planning a bonus or increment, estimate the taxable-income increase first and then calculate only the incremental tax caused by that increase. This gives a better picture of the net value of the additional compensation.

Use the calculator twice—once before the salary change and once after—then compare the difference in total tax. That is usually more informative than looking only at the slab into which the new income falls.

📌 Regime Comparison Checklist for Salaried Employees

Build two columns: one for New Regime and one for Old Regime. Start with the same annual salary figures, then apply only the deductions and exemptions available to each side.

Calculate taxable income separately, apply the respective slab rates, then Section 87A where eligible, surcharge where applicable and 4% cess. The lower final annual tax is the tax-only winner.

After that, consider cash-flow items such as EPF, NPS, rent, insurance and other commitments. A tax regime decision is easier when the tax comparison and personal cash-flow comparison are kept separate.

Save the assumptions used. If rent, salary, deductions or bonus change materially during the year, rerun the comparison rather than relying on the result calculated at the beginning of the financial year.

✅ Final Tax Slab Review

Before using any result, confirm that the income figure belongs to the same financial year as the slab table. Then verify regime, age category, taxable income and rebate eligibility.

For a salary case, reconcile the result with Form 16 or the employer’s annual tax statement. If the figures differ, check taxable income first, then rebate and cess, rather than changing the final tax manually.

Keep a saved copy of the calculation with the assumptions used so a later salary revision, bonus or deduction update can be compared against the same baseline.

Frequently Asked Questions

Common questions about Income Tax Slabs 2026

What are the New Tax Regime slabs for AY 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%.
Is income up to ₹12 lakh completely exempt in the New Regime?▾The nil slab is only up to ₹4 lakh. The Income Tax Department states that an eligible resident individual can receive a Section 87A rebate up to ₹60,000 where total income does not exceed ₹12 lakh for AY 2026–27, subject to the applicable rebate conditions.
What are the Old Regime slabs below age 60?▾Nil up to ₹2.5 lakh; 5% from ₹2.5–5 lakh; 20% from ₹5–10 lakh; and 30% above ₹10 lakh.
Do senior citizens get different New Regime slabs?▾The published New Regime slab structure on the Income Tax Department page is the same across age groups. Higher age-based basic exemption limits are shown under the Old Regime.
Is 4% cess included in the slab rate?▾No. Health & Education Cess at 4% is added after income tax and surcharge, if any. The calculator on this page adds 4% cess after rebate but excludes surcharge.
Which regime is better for salaried employees?▾It depends on taxable income under each regime, not only the slab percentages. Compare eligible deductions and exemptions under Old Regime against the lower and wider New Regime slab structure before deciding.
Should I enter CTC in the calculator?▾No. Enter taxable income after applying the deductions and exemptions relevant to the selected regime. CTC, gross salary and taxable income are different figures.
Does this calculator include surcharge and capital-gains tax?▾No. It is a simplified slab calculator for normal taxable income. High-income surcharge, marginal relief and special-rate income such as certain capital gains require a fuller tax computation.
Disclaimer: This page is an educational calculator and guide based on Income Tax Department slab information for AY 2026–27. Tax outcomes can differ because of residential status, deductions, special-rate income, surcharge, marginal relief and other provisions.