New Tax Regime Calculator
Compute your tax liability under the new regime as per Budget 2026.
EPF, ELSS, PPF, LIC
About the New Tax Regime Calculator
The New Tax Regime Calculator computes your income tax liability for FY 2026-27 (AY 2027-28) under both the old and new tax regimes as per the latest Finance Act. Indian taxpayers face a binary choice every year — the new regime offers lower slab rates with almost no deductions, while the old regime rewards aggressive 80C, 80D, HRA and home-loan-interest claims. This tool quantifies the difference so you can elect the regime that minimises your outflow.
How the New Tax Regime Calculator works
- Enter your gross annual salary, other income (interest, capital gains, rent), and eligible deductions.
- The calculator applies the FY 2026-27 slab structure for both regimes, including standard deduction (₹75,000 new / ₹50,000 old) and Section 87A rebate.
- It adds Health & Education Cess of 4% and any applicable surcharge for income above ₹50L.
- Final output shows net tax payable under each regime and the optimal choice.
Inputs explained
Formula
Tax = Σ (slab_amount × slab_rate) − rebate_87A + cess(4%) + surcharge New regime FY 26-27 slabs: 0-4L: nil • 4-8L: 5% • 8-12L: 10% • 12-16L: 15% • 16-20L: 20% • 20-24L: 25% • >24L: 30%.
Worked example
For a salary of ₹15.00 L with ₹1.5L in 80C, ₹25k in 80D and ₹2L home-loan interest, the old regime usually wins below ~₹12 LPA, while the new regime is typically better above ₹15 LPA unless you can claim large HRA + home-loan deductions.
India-specific notes
- •From FY 2025-26, the new regime is the default — you must explicitly opt out to use the old regime.
- •Section 87A rebate makes income up to ₹12 lakh effectively tax-free under the new regime (Budget 2025).
- •Surcharge: 10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr (new regime caps at 25%); 37% above ₹5Cr is removed in the new regime.
- •Salaried individuals can switch regimes every year; business income holders can switch only once in a lifetime.
Tips to maximise this calculator
- →Max out NPS 80CCD(1B) for an extra ₹50k deduction — available even in some new-regime scenarios via employer contribution.
- →If you rent in a metro and have a high HRA component, the old regime almost always wins.
- →Re-run the calculation in March before submitting investment proofs to your employer.
Common mistakes to avoid
- ✕Assuming the new regime is always better — for salaries ₹10-15L with high deductions, the old regime can save ₹40k-₹80k.
- ✕Forgetting to add interest income from FDs and savings accounts.
- ✕Claiming HRA without rent receipts above ₹1L/year (PAN of landlord mandatory).
Glossary
- TDS
- Tax Deducted at Source — withheld by your employer or bank and remitted to the government.
- Cess
- A 4% Health & Education Cess applied on top of base tax liability.
- Rebate 87A
- Full tax waiver for incomes below the prescribed limit (₹12L under new regime in FY 25-26 onward).
- Standard deduction
- Flat reduction from salary income — ₹75k under new regime, ₹50k under old.
Frequently asked questions
Is the New Tax Regime Calculator free to use?
Yes. The New Tax Regime Calculator is free, runs in your browser and never stores personal data.
Are the assumptions India-specific?
Yes. We use INR, Indian inflation and India-specific rates (PPF, EPF, FY 2026-27 tax slabs where applicable).
Is this investment advice?
No. This tool is for education. Consult a SEBI registered advisor before investing.