New Tax Regime Calculator
Your choice between India’s old and new tax regimes can change your annual tax outgo by thousands of rupees. The new regime offers lower marginal slab rates but removes most exemptions, making manual calculations tedious. A dedicated new tax regime calculator lets you enter your gross income, apply the latest slab rates, and see your final liability in seconds.
The new tax regime is an optional filing structure introduced to simplify compliance in exchange for giving up most deductions. As of 2026, it is the default regime for individual taxpayers and Hindu Undivided Families. If you do not explicitly choose the old regime when filing your Income Tax Return, the new regime applies automatically.
How does the new tax regime calculator work?
The calculator above follows the same sequence prescribed by the Income Tax Department.
- Accept your gross total income and subtract the standard deduction of ₹50,000 if you are salaried or a pensioner.
- Apply the current slab-wise rates to the remaining taxable income.
- Check eligibility for the Section 87A rebate, which can reduce tax payable to nil for qualifying incomes.
- Add 4% health and education cess on the net tax amount.
- Include surcharge if taxable income crosses the applicable thresholds.
What are the current new tax regime slab rates?
As of 2026, taxable income under the new regime is subject to the following progressive slab rates:
- Up to ₹3 lakh: 0%
- ₹3,00,001 to ₹6 lakh: 5%
- ₹6,00,001 to ₹9 lakh: 10%
- ₹9,00,001 to ₹12 lakh: 15%
- ₹12,00,001 to ₹15 lakh: 20%
- Above ₹15 lakh: 30%
A 4% health and education cess is levied on the total tax payable. Higher incomes attract surcharge, which is applied after the base tax is computed. Marginal relief provisions ensure the extra tax does not exceed the income that crosses a threshold.
What deductions are allowed under the new regime?
Although the new regime removes most exemptions, a few benefits remain. Salaried taxpayers can claim the standard deduction of ₹50,000. Contributions to the Central Government Health Scheme, employer contributions to NPS under Section 80CCD(2), and conveyance allowance for disabled employees are also retained. Every other common deduction, including Section 80C, 80D, and 80E, is disallowed.
New regime vs old regime: which saves more tax?
The answer depends on your total eligible deductions and exemptions.
| Feature | New Regime | Old Regime |
|---|---|---|
| Tax slab rates | Lower progressive rates | Higher progressive rates |
| Standard deduction (₹50,000) | Available | Available |
| Section 80C (PPF, ELSS, LIC) | Not allowed | Allowed up to ₹1.5 lakh |
| HRA exemption | Not allowed | Allowed if eligible |
| Home loan interest (self-occupied) | Not allowed | Allowed up to ₹2 lakh |
| Section 87A rebate | Available | Available |
| Default status | Default | Must actively opt in |
For example, if your gross income is ₹12,00,000 and you claim no major deductions, the new regime typically results in lower tax. However, if you claim ₹3,00,000 or more through 80C, 80D, and HRA combined, the old regime may leave you with a smaller tax bill. Running both scenarios through a comparison tool gives a clear answer before filing.
Who should use the new tax regime?
Consider the new regime if you:
- Do not pay rent and cannot claim HRA.
- Have not taken a home loan for a self-occupied property.
- Invest minimally in Section 80C instruments such as PPF or ELSS.
- Prefer simpler compliance without collecting and preserving multiple receipts.
Conversely, taxpayers with significant home loan interest, large medical insurance premiums, or rental exemptions usually pay less under the old structure. Always verify final figures against the latest notification from the Income Tax Department or consult a chartered accountant.
This information is for general understanding only and does not constitute tax advice. Slab rates and rebate limits are subject to legislative changes; verify current values before filing.