New Regime Income Tax Calculator — Tax Year 2026-27
Updated June 2026 · Verified — Use this new regime income tax calculator to compute your exact tax liability for Tax Year 2026-27. It auto-applies the ₹75,000 standard deduction, computes slab-wise tax, applies the rebate u/s 87A (zero tax for income up to ₹12 lakh), adds surcharge for high incomes, and applies 4% Health & Education Cess under the Income-tax Act, 2025.
Calculate Your Tax Under the New Regime
What Are the New Regime Tax Slabs for Tax Year 2026-27?
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
How Does the Rebate u/s 87A Work?
If your total taxable income under the new regime does not exceed ₹12,00,000, your entire tax liability is rebated — effectively making your tax zero.
For salaried individuals, the standard deduction of ₹75,000 means income up to ₹12,75,000 results in nil tax.
Marginal relief also applies: if your income slightly exceeds ₹12 lakh, the tax payable is capped at the income exceeding ₹12 lakh, preventing a sudden jump.
How Is Surcharge Calculated?
| Taxable Income | Surcharge Rate (New Regime) |
|---|---|
| Up to ₹50 lakh | Nil |
| ₹50 lakh – ₹1 crore | 10% |
| ₹1 crore – ₹2 crore | 15% |
| Above ₹2 crore | 25% (capped) |
Under the new regime, the maximum surcharge is capped at 25% (unlike the old regime which goes up to 37%). Marginal relief on surcharge ensures the total tax does not exceed income above the threshold.
How Is Health & Education Cess Calculated?
A 4% cess is levied on the total of income tax plus surcharge:
Cess = 4% × (Income Tax after Rebate + Surcharge)
Frequently Asked Questions
What is the standard deduction under the new regime for Tax Year 2026-27?
The standard deduction under the new regime is ₹75,000 for salaried individuals and pensioners. This is automatically deducted from gross salary before computing taxable income.
Is the new regime mandatory?
The new regime is the default regime under the Income-tax Act, 2025. However, it is not mandatory. Taxpayers can opt for the old regime while filing their return. Salaried individuals should inform their employer if they wish TDS to be deducted under the old regime.
Can I claim deductions like 80C and 80D under the new regime?
No. Most deductions under Chapter VI-A (80C, 80D, 80E, etc.) and exemptions like HRA and LTA are not available under the new regime. Only the standard deduction of ₹75,000 and employer’s NPS contribution (up to 14% of salary) are allowed.
How does marginal relief work for the rebate?
If your taxable income slightly exceeds ₹12,00,000, the tax payable is limited to the amount by which your income exceeds ₹12 lakh. For example, if taxable income is ₹12,10,000, your tax is capped at ₹10,000 (not the full slab-computed amount).
Does this calculator include surcharge and cess?
Yes. This calculator computes slab-wise tax, applies the rebate u/s 87A, adds surcharge (with marginal relief) for incomes above ₹50 lakh, and adds 4% Health & Education Cess to arrive at the total tax payable.