Currently I am using java 8 with latest android studio 2.1
Here is my build.gradle file
android {
compile
you can try
compileSdkVersion 23
buildToolsVersion '24.0.0-rc3'
note the dash before rc3. This is according to http://developer.android.com/preview/setup-sdk.html under the section "Update an existing project"
I am using 23 just for the lambda.
the following link shows the Supported Java 8 Language Features and APIs https://developer.android.com/preview/j8-jack.html