New Tax Regime Calculator
Calculate your tax under the new default regime slabs for India, incorporating standard deductions and tax rebate thresholds.
New Tax Regime Calculator – Plan Your simplified Tax Liability
The Indian direct tax landscape has shifted toward simplicity and ease of compliance. To reduce the compliance burden and leave more disposable income with middle-class taxpayers, the government introduced and updated the **New Tax Regime**. Unlike the traditional system, which required extensive record-keeping of investments, medical bills, and rent receipts, the New Tax Regime offers lower tax slab rates in exchange for removing most deductions.
For the financial year (FY) 2025-26 (Assessment Year 2026-27), the New Tax Regime is the default option. Salaried individuals receive an increased standard deduction of ₹75,000. Additionally, under Section 87A, taxpayers with taxable income up to ₹12 Lakhs pay zero tax.
Our web-based **New Tax Regime Calculator** is updated with the latest budget changes. By entering your annual salary and other incomes, you can instantly estimate your tax under this default regime. The tool is free, secure, and operates entirely in your browser.
Benefits of the New Tax Regime
The New Tax Regime provides several advantages designed to make tax compliance straightforward and affordable:
- No Mandatory Investment Lock-ins: You are not forced to lock your savings in 5-year FDs, PPF, or expensive insurance plans just to reduce your tax bill. You can invest your money where it fits your financial goals.
- Lower Slabs and Rates: Taxes are spread across lower percentages, meaning you pay less on moderate salary brackets.
- Higher Zero-Tax Threshold: Earn up to ₹12 Lakhs tax-free (after standard deduction) in FY 2025-26 thanks to the Section 87A tax rebate.
- Reduced High-Earner Surcharges: The maximum surcharge for high-income earners is capped at 25%, lowering the maximum tax rate.
- Simplified ITR Filing: File tax returns easily without compiling investment proofs, reducing tax audit hassles.
How the New Tax Regime is Calculated
The New Tax Regime calculations are based on standard slabs, standard deductions, and Section 87A rebates.
1. FY 2025-26 New Tax Regime Slabs
Tax rates for the current financial year are structured as follows:
- Up to ₹4,00,000: Nil (0%)
- ₹4,00,001 to ₹8,00,000: 5%
- ₹8,00,001 to ₹12,00,000: 10%
- ₹12,00,001 to ₹16,00,000: 15%
- ₹16,00,001 to ₹20,00,000: 20%
- Above ₹20,00,000: 30%
2. Applying Standard Deduction
Salaried taxpayers receive a flat deduction of ₹75,000, which is subtracted directly from gross salary:
3. Evaluating Section 87A Tax Rebate
If the taxable income is ₹12,00,000 or less, the calculated tax is fully offset by a rebate up to ₹60,000, making the final tax liability zero:
How to Use the Online New Tax Regime Calculator
Estimate your tax liability in a few simple steps:
- Select Financial Year: Choose the target year (FY 2025-26 for upcoming planning, or FY 2024-25 for current filing).
- Enter Gross Salary: Input your total annual salary package.
- Provide Other Income: Add other taxable income streams like bank interest or rental yields.
- Enter Permitted Deductions: Add any corporate NPS contributions under Section 80CCD(2).
- Check Tax Summary: Instantly check the results dashboard displaying taxable income, tax before rebate, cess, and the final tax payable.
New Tax Slabs: FY 2024-25 vs. FY 2025-26
See how the slab structures have changed across recent budgets:
| Slab Rate | FY 2024-25 Slabs | FY 2025-26 Slabs (Latest) |
|---|---|---|
| Nil (0%) | Up to ₹3,00,000 | Up to ₹4,00,000 |
| 5% | ₹3,00,001 - ₹6,00,000 | ₹4,00,001 - ₹8,00,000 |
| 10% | ₹6,00,001 - ₹9,00,000 | ₹8,00,001 - ₹12,00,000 |
| 15% | ₹9,00,001 - ₹12,00,000 | ₹12,00,001 - ₹16,00,000 |
| 20% | ₹12,00,001 - ₹15,00,000 | ₹16,00,001 - ₹20,00,000 |
| 30% | Above ₹15,00,000 | Above ₹20,00,000 |
Privacy and Safety Integrity
We take your financial privacy seriously. Our New Tax Regime Calculator operates entirely locally in your web browser. No income inputs, salaries, or calculated tax obligations are uploaded or stored. You can run comparison scenarios with absolute confidentiality.
Frequently Asked Questions
What is the slab rate under the New Tax Regime for FY 2025-26?
For FY 2025-26 (AY 2026-27), the New Tax Regime slabs are: Up to ₹4L - Nil, ₹4L-8L - 5%, ₹8L-12L - 10%, ₹12L-16L - 15%, ₹16L-20L - 20%, and Above ₹20L - 30%.
Is there standard deduction under the New Regime?
Yes, salaried employees receive a flat ₹75,000 standard deduction under the New Tax Regime for both FY 2024-25 and FY 2025-26.
Do I get zero tax up to ₹12 Lakhs income?
Yes, for FY 2025-26, resident individuals with taxable income up to ₹12 Lakhs (after standard deduction) pay zero tax due to Section 87A rebate.
What deductions are allowed in the New Tax Regime?
Exemptions like Section 80C, 80D, 24(b) home loan interest, and HRA are not allowed. However, you can claim the standard deduction of ₹75,000, employer contribution to NPS under Section 80CCD(2), and family pension deductions.
Is the New Tax Regime default for taxpayers?
Yes. From FY 2023-24 onward, the New Tax Regime is the default tax option. If you want to file under the Old Tax Regime, you must actively select it when filing your ITR (and submit Form 10-IEA for business income).
Can I deduct home loan interest under the New Tax Regime?
No. Interest paid on home loans for self-occupied properties (under Section 24b) is not deductible in the New Tax Regime. It is only allowed in the Old Tax Regime. However, interest on let-out property can be offset against rental income under the New Regime.
What is the maximum surcharge rate in the New Tax Regime?
In the New Tax Regime, the maximum surcharge rate for high-income earners (incomes above ₹5 Crores) is capped at 25%, down from 37% in the Old Regime. This reduces the maximum marginal tax rate to 39%.
Are PPF and ELSS mutual fund investments tax-saving under the New Regime?
No. Mutual funds (ELSS), Public Provident Fund (PPF), life insurance premiums, and other Section 80C instruments do not provide any tax deductions under the New Tax Regime.
How is the Section 87A rebate applied under the New Regime?
If your total taxable income after standard deduction is ₹12 Lakhs or less, you qualify for a tax rebate under Section 87A up to ₹60,000, which reduces your final tax payable to zero.
Can I switch back to the Old Tax Regime in future years?
Salaried individuals who do not have business or professional income can switch between the Old and New tax regimes every year. Business owners only have a one-time option to switch back to the Old Regime during their lifetime.