Income Tax Calculator for Salaried Employees (FY 2026-27)
Compare Old vs New Tax Regime and see how much TDS your employer deducts every month.
Compare your income tax
Enter your annual income and deductions to compare both tax regimes.
Enter total annual salary (before tax)
Old Regime Deductions (Optional)
Not applicable under New Tax Regime.
Includes LTA (Sec 10(5)), 80E, 80G, etc.
This calculator is primarily intended for salaried individuals. It does not account for complex income sources such as capital gains or business income.
FAQs on Income Tax Calculator for Salaried Employees (FY 2026-27)
Which tax regime is better for salaried employees in FY 2026-27?
It depends on your total deductions. If you claim high deductions such as 80C, HRA, home loan interest, and 80D, the Old Tax Regime may reduce your tax more. If you have fewer deductions, the New Tax Regime with lower slab rates and a ₹75,000 standard deduction may result in lower tax.
Is standard deduction available in the New Tax Regime?
Yes. For FY 2026-27, salaried individuals and pensioners can claim a ₹75,000 standard deduction under the New Tax Regime and ₹50,000 under the Old Tax Regime.
How is monthly TDS calculated for salaried employees?
Employers estimate annual tax liability based on salary and declared deductions, then divide it across remaining months in the financial year. The income tax calculator shows estimated monthly TDS under both tax regimes.
Can salaried individuals switch between Old and New Tax Regime every year?
Yes. Salaried individuals can choose between the Old and New Tax Regime every financial year while filing income tax return. Different rules apply for business income cases.
Are Section 80C and HRA allowed in the New Tax Regime?
No. Most deductions such as Section 80C, 80D, HRA, and home loan interest are not available under the New Tax Regime. However, standard deduction and employer NPS contributions are allowed.
What is the rebate under Section 87A in FY 2026-27?
Eligible taxpayers with taxable income within prescribed limits can claim rebate under Section 87A, which can reduce tax liability to zero depending on the selected tax regime.
Does the income tax calculator include 4% cess?
Yes. The calculator includes 4% Health and Education Cess while computing total tax payable under both Old and New Tax Regimes.
Is this income tax calculator suitable for private and government employees?
Yes. The calculator is designed for salaried professionals in both private and government sectors, including pensioners.