Income Tax · New Regime
Income Tax Calculator New Regime (India, 2026)
An income tax calculator for the new regime is useful, but it only helps if you feed it the right numbers and understand what it is doing. This guide walks through the new regime calculation for FY 2025-26 by hand, with a worked example, so you can check any online calculator and know your tax before you file.
- Inputs: gross salary, other income, Rs 75,000 standard deduction, and 80CCD(2) employer NPS.
- Not allowed: 80C, 80D, HRA and self-occupied home loan interest in the new regime.
- Steps: total income, subtract deduction, apply slabs, apply 87A rebate, add 4% cess.
- Rebate: income up to Rs 12,00,000 can be nil tax in the new regime for FY 2025-26.
- Common errors: wrong year, missing interest income, and forgetting cess and surcharge.
- Best choice: calculate both regimes and pay the lower.
01What goes into the calculation
To calculate your tax under the new regime for FY 2025-26, you need a short list of numbers.
- Gross salary for the year, from your Form 16 or payslips.
- Standard deduction of Rs 75,000, which the new regime still allows on salary.
- Other income such as bank interest, which is added in full.
- Employer NPS contribution under section 80CCD(2), if any, which is deductible even in the new regime.
Most other deductions, such as 80C, 80D, HRA and home loan interest on a self-occupied house, are not allowed in the new regime, so you leave them out.
02The steps, one by one
- Add up total income: gross salary plus other income.
- Subtract the standard deduction of Rs 75,000 and any 80CCD(2) employer NPS, to get taxable income.
- Apply the slab rates band by band to the taxable income.
- Apply the section 87A rebate if your total income is within the limit, which can make the tax nil.
- Add 4% cess on the tax, and any surcharge if your income is high.
The slab rates for FY 2025-26 are set out in full in the new regime tax slab guide. In short: nil up to Rs 4,00,000, then 5%, 10%, 15%, 20%, 25% and 30% in Rs 4,00,000 bands up to Rs 24,00,000 and above.
03A worked example
Take a salaried person with a gross salary of Rs 15,00,000 and no other income, under the new regime for FY 2025-26.
| Step | Amount |
|---|---|
| Gross salary | Rs 15,00,000 |
| Less standard deduction | Rs 75,000 |
| Taxable income | Rs 14,25,000 |
| Tax on first Rs 4,00,000 (nil) | Rs 0 |
| Tax Rs 4,00,001 to Rs 8,00,000 at 5% | Rs 20,000 |
| Tax Rs 8,00,001 to Rs 12,00,000 at 10% | Rs 40,000 |
| Tax Rs 12,00,001 to Rs 14,25,000 at 15% | Rs 33,750 |
| Tax before cess | Rs 93,750 |
| Add 4% health and education cess | Rs 3,750 |
| Total tax | Rs 97,500 |
Here the income is above Rs 12,00,000, so the section 87A rebate does not apply and tax is payable. A person with taxable income within the rebate limit would pay nil. Figures are rounded for illustration; confirm on the official calculator.
04Where calculators go wrong
Online calculators are only as good as what you put in. Common mistakes:
- Entering old regime deductions such as 80C or HRA in a new regime calculation, which the regime does not allow.
- Missing other income such as savings and fixed deposit interest, which must be added.
- Forgetting the cess and surcharge, so the figure looks lower than the real tax.
- Using the wrong year, since slabs changed for FY 2025-26.
If you have a home loan, note that interest on a let-out property follows different rules from a self-occupied one; see section 80EE on home loan interest for the older deduction and its conditions.
05New regime versus old regime
The only way to know which regime is cheaper for you is to calculate your tax both ways on the same income and compare the final figure, including cess. The new regime usually wins when your deductions are small; the old regime can win when you have a home loan, a full 80C and HRA together.
A calculator tells you the tax under one regime. The useful answer is the lower of the two, so always run your numbers through both.
06How Claw Tax helps
Claw Tax and Accounts is an online tax, GST and accounting service for India that connects you with a verified chartered accountant at a fixed, published price, with a Claw reviewer checking every filing before it is submitted.
You can calculate and file your own return for free on the income tax portal, which has an official tax calculator. Claw Tax is for when you want a verified chartered accountant to run both regimes on your real salary, apply the rebate and cess correctly, and file the result, or when you simply want it off your plate.
You pick an ITR service at a fixed, published price, a verified CA prepares the return, a Claw reviewer checks the figures before submission, and reminders go out before the next due date. See the fixed prices at clawlaw.in/tax.
This is general information, not tax advice; a verified CA handles the specifics of your case.
07Frequently asked questions
How do I calculate income tax under the new regime?
Add your gross salary and other income, subtract the Rs 75,000 standard deduction and any employer NPS under 80CCD(2) to get taxable income, apply the FY 2025-26 slab rates band by band, apply the section 87A rebate if your income is within the limit, and add 4% cess. Surcharge applies at higher incomes.
Does the new regime calculator allow the standard deduction?
Yes. The new regime keeps the standard deduction of Rs 75,000 on salary and the employer NPS contribution under 80CCD(2). It does not allow most other deductions such as 80C, 80D, HRA and home loan interest on a self-occupied house, so do not enter those in a new regime calculation.
Why does my calculator show a different figure from my payslip TDS?
TDS is deducted through the year on an estimate, while the annual calculation uses your final figures, including any other income like interest. Differences are normal: if too little TDS was deducted you pay the balance, and if too much was deducted you get a refund when you file.
Is income up to Rs 12 lakh tax free in the new regime calculator?
For FY 2025-26, a resident individual with total income up to Rs 12,00,000 pays no tax in the new regime because of the section 87A rebate. A salaried person also gets the Rs 75,000 standard deduction, so the effective nil-tax salary is around Rs 12,75,000. Above the limit, tax becomes payable.
Which regime should I calculate first?
Calculate both. The new regime is the default and usually suits people who claim few deductions. The old regime can be cheaper if you have a home loan, a full 80C, health insurance and HRA. Compare the final tax, including cess, and pay the lower.
Is the official calculator reliable?
The income tax portal has an official tax calculator, which is a good check for a simple salary. For more complex income, such as capital gains, multiple house properties or business income, the inputs are easy to get wrong, and a verified professional review helps you avoid a costly mistake.