Income Tax Calculator - FY 2026-2027

Calculating income tax can be complex, especially when considering deductions, exempt allowances, and income from various sources. For those unfamiliar with the Income Tax Act, it can be challenging to calculate tax liabilities based on applicable slab rates. That’s where the ClearTax Income Tax Calculator comes in. It simplifies manual calculations without the need for in-depth knowledge of tax laws.

What is the Income Tax Calculator?

The Cleartax Income tax calculator is a simple and easy-to-use online tool designed to calculate your tax liability in detail, according to the provisions and rules of the Income Tax Act 1961. It enables you to compare your tax liability between the old and new tax regimes, making choosing the more beneficial option easier. It's especially useful if you do not understand the section, provisions and technical aspects of the government's income tax filing portal. Our calculator has been updated in line with tax changes proposed in the union Budget 2026. You can plan your taxes and tax liability for relevant financial years more effectively and make informed financial decisions. 

How to Use the Income Tax Calculator for FY 2026-27 (AY 2027-28)?

Following are the steps to use the tax calculator:

Step 1: Choose the financial year for which you want your taxes to be calculated.

Step 2: Select your age accordingly. Tax liability under the old regime differs based on the age groups.

Step 3: Click on ‘Continue’

Step 4: Enter your salary, i.e. salary before deducting various exemptions such as HRA and so on. If LTA deduction is applicable to you, reduce it from salary and enter the net figure. There is a field available for exempt allowances. Enter the particulars if it applies to your case.

Step 5: Along with taxable salary, you must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self-occupied property.

Step 6: For Income from Digital Assets, enter the net income (Sale consideration (-) Cost of Acquisition).

Step 7: Click on 'Continue’ again.

Step 8: You can also enter your tax-saving investments under sections 80C, 80D, 80G, 80E, and 80TTA, if applicable to your case.

Step 9: Click on 'Calculate' to calculate your tax liability. You will be able to compare the old and new tax regimes.

What are the Income Tax Slab Rates for FY 2026-27?

There has been no changes made for the slab rates in Budget 2026. The income tax slab rates for both old and new regimes remains the same for FY 2026-27 as well.

Surcharge and Education Cess

If your income exceeds a certain threshold, you will incur additional taxes on top of the existing rates. This additional tax specifically targets high-income earners.

The surcharge rates are as follows:

• 10% of Income tax if total income > Rs.50 lakh and < Rs.1 crore,
• 15% of Income tax if total income > Rs.1 crore and < Rs.2 crore,
• 25% of Income tax if total income > Rs.2 crore and < Rs.5 crore,
• 37% of Income tax if total income > Rs.5 crore    

Note: The highest surcharge rate of 37% has been reduced to 25% under the new tax regime.

Additional Health and Education cess at the rate of 4% will be added to the income tax liability.

There are certain deductions/exemptions which are not available under the New regime.

Rebate u/s 87A

When the total taxable income of the taxpayer is within a specified limit, rebate can be claimed, making their tax liability zero. The specified limits for FY 2026-27 are given below:

*From FY 2026-27, rebate is not applicable for income charged under special rates. At any financial year, rebate is not applicable on long term capital gains under section 112A.

Heads of Income 

To calculate Income tax, include income from all sources. Include:

• Income from Salary 
• Income from House Property 
• Income from Capital Gains 
• Income from Business/Profession 
• Income from Other Sources

Using our online Income tax calculator offers several benefits such as:

Accuracy

Income tax calculator calculates your tax liability accurately eliminating any potential errors that result from calculating the tax liability manually. 

Swift and Hassle-free

The Income tax calculator is a tool which calculates your tax liability swiftly within few seconds and can be used anytime and anywhere.

User-Friendly

The Income tax calculator is a very user-friendly tool. Simply input your income and deduction details to accurately calculate your tax liability.

Better Financial Management and Tax Planning

Understanding your tax liability in advance is essential for effective financial planning. By knowing your potential tax obligations, you can allocate your budget wisely and invest in tax-saving instruments like ELSS, PPF,etc. to reduce the tax liability.