New Regime Tax Calculator — Default Regime FY 2026-27 — FY 2026-27
Calculate income tax under the New Regime (default from FY 2023-24) for FY 2026-27. New regime offers wider slabs + ₹75K standard deduction + ₹25K 87A rebate up to ₹7 L taxable income, but forfeits HRA, 80C, 80D, Section 24(b) and most other deductions. Best for salaried without significant deductions.
Compute your numbers → Income Tax Calculator
Use the full Income Tax Calculator for interactive computation with your exact inputs. This page covers the specific context + rules for your query intent.
Key rules at a glance
- 0% slab up to ₹4L (FY 2026-27 revised)
- ₹75K standard deduction for salaried
- Section 87A rebate up to ₹25K (income ≤ ₹7L)
- Marginal relief on surcharge thresholds
- No HRA / 80C / 80D / 80E deductions available
New regime tax slabs FY 2026-27
FY 2026-27 new regime slabs (as revised in Budget 2025): 0-4L nil, 4-7L at 5%, 7-10L at 10%, 10-12L at 15%, 12-16L at 20%, 16-24L at 25%, 24L+ at 30%. For salaried applicants, add a ₹75,000 standard deduction before applying slabs. 4% Health & Education Cess on tax payable. Surcharge applies above ₹50L with marginal relief.
Who should choose the new regime?
The new regime is BETTER when: (1) Your HRA exemption is small or zero (staying with parents / owning home). (2) Your 80C is already covered by EPF alone — you do not need ELSS/PPF for the ₹1.5L cap. (3) You have no Section 24(b) home-loan interest deduction. (4) You prefer simpler tax filing with fewer forms. For salaried earners at ₹8-15L CTC without HRA, new regime typically saves ₹10-30K/year vs old regime.
New regime Section 87A rebate — the ₹7 L threshold
Section 87A rebate under new regime: up to ₹25,000 for taxable income ≤ ₹7,00,000 (zeroes your tax). Between ₹7L and ~₹7.28L, marginal relief kicks in so your post-rebate tax does not exceed the income over ₹7L. Above ₹7.28L, full tax applies. This marginal-relief mechanism prevents the "cliff" where earning ₹1 extra triggers ₹25K tax.
How to switch between regimes
Salaried employees can choose regime EACH year while filing ITR (ITR-1 / ITR-2). For business income / self-employed (ITR-3 / ITR-4), the regime choice is locked-in with Form 10-IEA once exercised; switching back to old requires filing a revised Form 10-IEA and waits until next FY. Run both regimes through our calculator each year to pick the lower-tax option.
New Regime Tax Calculator — FAQ
What are the new regime tax slabs for FY 2026-27?
0% up to ₹4L, 5% on ₹4-7L, 10% on ₹7-10L, 15% on ₹10-12L, 20% on ₹12-16L, 25% on ₹16-24L, 30% above ₹24L. 4% cess on tax payable. Salaried employees get ₹75,000 standard deduction. Section 87A gives up to ₹25K rebate for income ≤ ₹7L.
Is new regime mandatory?
No. Salaried employees can choose new OR old regime each financial year. Self-employed / business income must file Form 10-IEA to switch regimes, and the choice is locked-in. New regime is the DEFAULT — if you do nothing, ITR auto-applies new.
Can I claim HRA under new regime?
No. Section 10(13A) HRA exemption is ONLY available under the old regime. If HRA is significant portion of your CTC and you pay rent, old regime usually wins despite higher slab rates.
What deductions are allowed in new regime?
Limited set: Standard deduction ₹75K (salaried), 80CCD(2) (NPS employer contribution up to 14% of salary), agniveer fund 80CCH, family pension deduction u/s 57(iia). That is it. No 80C, no 80D, no HRA, no Section 24(b).
How does the ₹12.75L "zero tax" claim work?
In FY 2026-27, salaried employees with gross salary up to ₹12.75L can pay ZERO tax via: (a) ₹75K standard deduction → taxable ₹12L. (b) Tax on ₹12L = ₹15K (slab) + ₹20K (rebate threshold). (c) With 87A rebate up to ₹25K: NIL tax. Above ₹12.75L, full tax applies. Check Budget 2025 for exact threshold.
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