🆕 Free Tool

New Tax Regime Calculator

Calculate your exact tax under India's New Tax Regime — slab-wise breakup, Section 87A rebate, marginal relief near ₹12L, surcharge, and your monthly take-home pay.

📅 FY 2025-26 & FY 2026-27 ✅ No slab changes in Budget 2026 🔒 No data stored
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🆕 Your Income (New Regime)

Income
Deductions Allowed in New Regime
The New Regime does NOT allow 80C, 80D, or HRA. Only the standard deduction and employer's NPS contribution reduce your taxable income here.
Only your employer's contribution to NPS counts — not your own. This is one of the few deductions still available in the New Regime.
Summary

Results update automatically as you type. Not a substitute for CA advice.

Your Tax Liability
Enter your income to calculate
🆕 New Regime Computation
Gross Income
Standard Deduction−₹75,000
Taxable Income
SlabRateTax
Tax as per Slabs
Health & Education Cess (4%)
Total Tax Payable
💰 Monthly Take-Home
⚠️ Surcharge above ₹50L shown here does not include surcharge marginal relief. Consult a CA for exact computation at high incomes.

Want to check if the Old Regime saves you more with 80C/80D/HRA deductions? Use our Old vs New Regime Comparison Calculator →

🆕 New Regime Slabs — FY 2025-26 & FY 2026-27

Income RangeTax Rate
Up to ₹4,00,000Nil
₹4L – ₹8L5%
₹8L – ₹12L10%
₹12L – ₹16L15%
₹16L – ₹20L20%
₹20L – ₹24L25%
Above ₹24L30%

✅ 87A Rebate: ZERO tax if taxable income ≤ ₹12 lakh (max rebate ₹60,000)

Standard deduction: ₹75,000 for salaried/pensioners. + 4% Health & Education Cess. Budget 2026 kept these slabs unchanged from FY 2025-26.

✅ Allowed in New Regime

  • Standard deduction — ₹75,000
  • Employer's NPS contribution — 80CCD(2), up to 14% of basic
  • Employer's EPF/NPS/superannuation contribution up to ₹7.5L combined
  • Gratuity & leave encashment exemption
  • Voluntary retirement (VRS) exemption — 10(10C)
  • Transport allowance for specially-abled employees
  • Interest on home loan for a let-out (rented) property

❌ Not Allowed in New Regime

  • Section 80C — PF, PPF, ELSS, life insurance, etc.
  • Section 80D — health insurance premium
  • HRA exemption
  • Home loan interest — 24(b) on self-occupied property
  • LTA (Leave Travel Allowance)
  • 80CCD(1B) — your own NPS contribution
  • Standard chapter VI-A deductions (80E, 80G, 80TTA, etc.)

New Tax Regime FAQs — FY 2026-27

What are the New Tax Regime slabs for FY 2026-27?

For FY 2026-27 (AY 2027-28): Nil up to ₹4,00,000; 5% on ₹4L–₹8L; 10% on ₹8L–₹12L; 15% on ₹12L–₹16L; 20% on ₹16L–₹20L; 25% on ₹20L–₹24L; 30% above ₹24L. Budget 2026 made no changes, so these are the same slabs that applied in FY 2025-26 after Budget 2025.

Is the New Tax Regime compulsory now?

The New Tax Regime is the default regime since FY 2023-24. If you don't actively choose the Old Regime, your employer will deduct TDS under the New Regime. Salaried individuals can still opt for the Old Regime every year when filing their return or declaring investments to their employer.

What deductions are allowed in the New Tax Regime?

The New Regime allows: standard deduction of ₹75,000 for salaried employees and pensioners, employer's NPS contribution under Section 80CCD(2) up to 14% of basic salary, employer's contribution to EPF/NPS/superannuation up to ₹7.5 lakh combined, and a few employment-related exemptions like gratuity, leave encashment, and voluntary retirement benefits. It does NOT allow 80C, 80D, HRA exemption, home loan interest on a self-occupied property, or LTA.

What is marginal relief under Section 87A?

Marginal relief prevents a tax "cliff" just above the ₹12 lakh rebate threshold. Without it, someone earning ₹12,10,000 could owe over ₹61,000 in tax — more than the ₹10,000 by which their income exceeds ₹12 lakh. Marginal relief caps the tax so it never exceeds the amount of income above ₹12 lakh, up to a breakeven point of roughly ₹12.71 lakh taxable income. This calculator applies marginal relief automatically.

Is income up to ₹12.75 lakh really tax-free under the New Regime?

Yes, for salaried individuals. The ₹75,000 standard deduction brings a ₹12.75 lakh gross salary down to ₹12 lakh taxable income, and the Section 87A rebate (up to ₹60,000) makes tax on taxable income up to ₹12 lakh exactly zero. So a salaried person earning up to ₹12.75 lakh a year pays no income tax under the New Regime.

What is the surcharge under the New Tax Regime?

Surcharge applies on income above ₹50 lakh: 10% between ₹50L–₹1Cr, 15% between ₹1Cr–₹2Cr, and 25% above ₹2Cr. Unlike the Old Regime, the New Regime caps surcharge at 25% even above ₹5 crore — the Old Regime charges 37% at that level. This makes the New Regime more attractive for very high earners.

Not sure New Regime is best for you?

Compare Old vs New regime side-by-side with your actual 80C, 80D, and HRA deductions.

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