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New tax regime calculator (FY 2026-27)

The new regime is now the default. It trades almost every deduction for lower rates, a larger standard deduction, and a rebate that removes tax entirely up to ₹12 lakh of taxable income. This page shows exactly how it computes.

Compute new-regime tax

What it means

Section 115BAC prescribes the new regime: nil up to ₹4,00,000, then 5%, 10%, 15%, 20%, 25% and 30% above ₹24,00,000, with a ₹75,000 standard deduction for salaried taxpayers and a Section 87A rebate of up to ₹60,000 with marginal relief.

The formula

Tax = Slabs(gross − ₹75,000) − 87A rebate, then + 4% cess

Chapter VI-A deductions other than employer NPS under 80CCD(2) are unavailable, as are HRA and LTA exemptions. In exchange the slabs are wider and the rebate reaches much further up the income scale than the old regime's ₹5 lakh limit.

Worked example

  • ₹12,75,000 salary → taxable ₹12,00,000 after the standard deduction.
  • Slab tax would be ₹60,000, fully wiped out by the 87A rebate.
  • Result: zero income tax, with marginal relief smoothing the cliff just above ₹12 lakh.

How to use it

  1. 1Enter your CTC. The engine derives gross and taxable income from your structure.
  2. 2Keep the regime on new. It is the default; the calculator computes both anyway.
  3. 3Check the rebate line. The computation sheet shows the 87A rebate and marginal relief explicitly.

Frequently asked questions

Is the new tax regime better for me?

It usually wins when your deductions are modest. Once HRA, 80C, NPS and home-loan interest together run into several lakhs, the old regime can overtake it. Compare both with your actual numbers rather than a rule of thumb.

What deductions survive in the new regime?

The ₹75,000 standard deduction, employer NPS under Section 80CCD(2) up to 14% of salary, and a few official-duty allowances such as conveyance and travel on tour. HRA, LTA and Section 80C are not available.

Can I switch back to the old regime?

Salaried taxpayers without business income may choose between regimes each year when filing. Your employer's TDS follows whatever you declare, but the final choice is made in your return.

Related tools & guides

Calculations on this site are based on official government provisions and should be verified against the latest government publications (incometax.gov.in).