Rules for FY 2026-27
The new regime costs less for most salaried people — a salary of up to ₹12,75,000 pays no tax at all — and the old regime wins only when HRA, 80C, 80D, home-loan interest and NPS together take off more than a break-even amount: on a ₹15,00,000 salary, ₹5,43,800 a year.
New to this? Tap ⓘ beside anything for a plain-English explanation, or read the words used here.
15 lakh
Enter an amount
Interest, rent received. Leave at ₹0 if none.
Lower tax · FY 2026-27
₹97,500a year, new regime
The new regime costs ₹1,12,320 a year less — ₹9,360 a month.
New regime
₹97,500
₹8,125 a month
Old regime
₹2,09,820
₹17,485 a month
Deductions the old regime needs to match the new
₹1,50,000 of ₹5,41,300 — the old regime needs ₹3,91,300 more in HRA and deductions before it is cheaper.
| Item | New | Old |
|---|---|---|
| Salary + other income | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | −₹75,000 | −₹50,000 |
| HRA exemption | — | ₹0 |
| Professional tax | — | −₹2,500 |
| Deductions | — | −₹1,50,000 |
| Taxable income | ₹14,25,000 | ₹12,97,500 |
| Tax on the slabs | ₹93,750 | ₹2,01,750 |
| Rebate | ₹0 | ₹0 |
| Cess, 4% | ₹3,750 | ₹8,070 |
| Tax for the year | ₹97,500 | ₹2,09,820 |
An estimate from the same functions Facto Lite’s payroll runs, for FY 2026-27. Not tax or legal advice. Nothing you type leaves this page.
Read the guide: TDS on Salary: What an Employer Must Do →
Read the guide: Old vs New Tax Regime for Salaried Staff, 2026-27 →
Income tax a year, FY 2026-27, below 60, salary only, before professional tax
What each field and each line of the result means, where to find it, and what to do if you do not know it.
Your gross salary for the whole financial year, April to March — every allowance included, before PF or tax is taken out.
Gross earnings on a payslip × 12, or the “gross salary” line on last year’s Form 16. Not your CTC: that includes the employer’s PF.
Income besides salary that is taxed at your slab rate — savings and deposit interest, rent received, freelance fees. It counts under both regimes.
Leave at ₹0 if you have none. Capital gains are taxed at their own rates and do not belong here.
House Rent Allowance — the part of salary paid towards rent. Under the old regime part of it is tax-free if you pay rent; under the new regime all of it is taxed.
A line on your payslip, a month. Enter ₹0 if your salary has no HRA.
The rent you actually pay for the home you live in, a month. The HRA exemption needs it to be more than 10% of Basic.
Paying rent to parents counts if they own the house and declare the rent as their income.
Your monthly Basic, plus DA if it counts for retirement benefits. The HRA exemption is worked out as a share of it.
Not sure? Most salaries set Basic at 40–50% of gross.
In a metro, HRA is exempt up to half of Basic; anywhere else, up to two fifths. The metros for FY 2026-27 are Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.
Amounts that lower old-regime tax, up to ₹1,50,000 a year in total: your PF contribution, PPF, ELSS mutual funds, life insurance, children’s tuition fees and home-loan principal.
Your own PF counts — 12% of Basic × 12 — so many people reach the limit without investing anything else.
For example: PF of ₹21,600 a year, PPF of ₹50,000 and life insurance of ₹30,000: enter ₹1,01,600.
The premium for health insurance on yourself, your spouse and your children. Up to ₹25,000 a year counts, or ₹50,000 if you are 60 or over.
The premium you pay for your parents’ health insurance — a second limit on top of your own: ₹25,000 a year, or ₹50,000 if either parent is 60 or over.
Interest paid on a loan for a house you live in, up to ₹2,00,000 a year, under the old regime. The principal repaid counts under 80C instead.
The interest certificate from your bank shows it for the year.
What you put into the National Pension System yourself, up to ₹50,000 a year, on top of the ₹1,50,000 of 80C.
Anything else the old regime allows: education-loan interest (80E), donations (80G), savings-account interest (80TTA) and so on — as one figure.
Leave at ₹0 if you have none.
The state tax on salaries, at most ₹2,500 a year. The old regime deducts it from taxable income; the new regime does not.
Karnataka, Maharashtra and many other states charge ₹2,500 a year on most salaries. Enter ₹0 if your state does not charge it.
The old tax regime lets older people earn more before tax starts: ₹2,50,000 below 60, ₹3,00,000 from 60 to 79, and ₹5,00,000 at 80 or over. The new regime is the same for everybody.
Use your age on 31 March at the end of the financial year.
Two ways of working out income tax; you choose one each year. The new regime has lower rates and no deductions. The old regime has higher rates but lets you subtract things like 80C investments and HRA.
The new regime takes ₹75,000 off your salary before tax (the old one, ₹50,000), and charges nothing up to ₹12,75,000. The calculator works out both and shows which leaves you more.
A flat amount taken off salary before tax, with no proof needed: ₹75,000 under the new regime and ₹50,000 under the old.
Cancels the tax on a small income: under the new regime, on taxable income up to ₹12,00,000; under the old, up to ₹5,00,000.
A 4% health and education cess on the tax, under both regimes.
The total the old regime needs taken off — HRA exemption and deductions together — just to cost the same as the new regime. Above it, the old regime is cheaper.
For example: If the break-even is ₹4,00,000 and your HRA exemption plus deductions come to ₹3,00,000, the new regime is cheaper.
In-hand salary calculator
Take-home is your gross salary minus employee PF (12% of Basic, at most ₹1,800 a month on the ₹15,000 ceiling), ESI if your gross is ₹21,000 or less, professional tax and income tax — and under the new regime a salary of up to ₹12,75,000 pays no income tax at all.
Salary slip generator
A salary slip lists the month’s earnings — Basic, HRA and allowances — then the deductions — PF at 12% of Basic, ESI if gross pay is ₹21,000 or less, professional tax and income tax — and the net pay in figures and in words. Fill in yours and download it as a PDF.
PF and ESI calculator
PF is 12% of Basic + DA from the employee and the same from the employer — ₹1,800 each on the usual ₹15,000 ceiling, with ₹1,250 of the employer’s share going to pension — and ESI is 0.75% from the employee and 3.25% from the employer when gross pay is ₹21,000 a month or less.
Facto Lite takes each employee’s regime and declarations, and deducts TDS every month on the ladder this calculator uses. See Payroll.
Sixty days of Facto Lite free, no card. Declarations, both regimes and a month-by-month TDS projection for every employee.