Tax year: FY 2026-27 · Last updated: 3 Nov 2026
Short answer
Under the new regime a salaried person pays no income tax up to about ₹12.75 lakh of gross salary, thanks to the ₹75,000 standard deduction and the ₹60,000 rebate.
New regime slab rates for FY 2026-27
The calculator uses the following slabs for taxable income in the new regime.
| Taxable income | Tax rate |
|---|---|
| Up to 4 Lakh | Nil |
| 4 Lakh to 8 Lakh | 5% |
| 8 Lakh to 12 Lakh | 10% |
| 12 Lakh to 16 Lakh | 15% |
| 16 Lakh to 20 Lakh | 20% |
| 20 Lakh to 24 Lakh | 25% |
| Above 24 Lakh | 30% |
These rates live in a single configuration file with an effective date, so they can be updated quickly after a Budget. Always confirm them with the Income Tax Department's website.
How the new regime works for a salaried employee
- Start with gross salary.
- Subtract the standard deduction of ₹75,000 (and employer NPS if you have it).
- Apply the slab rates to the result.
- If taxable income is ₹12 lakh or less, a rebate of up to ₹60,000 makes the tax nil.
- Above ₹12 lakh, marginal relief limits tax to the amount above ₹12 lakh.
- Add 4% health and education cess.
Who gains from the new regime
The new regime tends to suit people who claim few deductions: freshers, people living in their parents' home, and anyone without a home loan. Because the rebate makes income up to roughly ₹12.75 lakh tax free, the take-home for many mid-level salaries is close to the gross salary minus PF and professional tax.
People with large HRA, 80C and home-loan interest claims should still run the numbers: use More options to enter them and look at the comparison panel. Our old vs new regime guide explains how to decide.
Surcharge on very high incomes
Incomes above ₹50 lakh attract a surcharge on the tax. The surcharge bands are not yet modelled in this version, so for very high salaries the tax shown can be lower than the real figure. Treat results above that level as a lower bound.
Frequently asked questions
Is income up to ₹12 lakh really tax free in the new regime?
Taxable income up to ₹12 lakh is tax free because of the section 87A rebate of up to ₹60,000. For a salaried person, the ₹75,000 standard deduction means a gross salary of about ₹12.75 lakh is also tax free.
What is marginal relief?
If your taxable income is just above ₹12 lakh, the normal slab tax can be higher than the amount by which you exceed ₹12 lakh. Marginal relief caps your tax at that excess, so earning slightly more never makes you lose a large amount.
Which deductions work in the new regime?
Mainly the ₹75,000 standard deduction and the employer's NPS contribution. Most others (80C, 80D, HRA, home-loan interest) are not available.
Is the new regime the default?
Yes. Unless you opt for the old regime with your employer, tax is calculated under the new regime.
Is professional tax deducted for tax purposes in the new regime?
No. It is still deducted from your pay, but it does not reduce taxable income in this calculator's new-regime view.
Keep reading
Estimates only. This calculator is not tax advice, and your employer's payslip is the final word. Read the full disclaimer.