Income Tax Calculator FY 2026-27 (AY 2027-28)
Under the New Tax Regime for FY 2026-27 (Assessment Year 2027-28), income up to ₹4 lakh is untaxed, salaried taxpayers get a standard deduction, and a rebate under section 87A wipes out tax entirely on taxable income up to ₹12 lakh. This calculator applies the full slab table plus the 4% health and education cess.
The formula
Slab-wise tax − 87A rebate + 4% cess
FAQ
Do I pay tax on ₹12 lakh salary in FY 2026-27?
Under the new regime, a salaried person with ₹12 lakh gross minus standard deduction has taxable income below ₹12 lakh, so the section 87A rebate reduces tax liability to zero.
What is the section 87A rebate?
It rebates up to ₹60,000 of tax for taxpayers whose taxable income does not exceed ₹12 lakh under the new regime — the reason zero tax applies up to that level.
Is the 4% cess avoidable?
No — the health and education cess of 4% applies on tax after rebate, whatever your slab.