Income Tax Calculator for Central Govt & Salaried Employees: New vs Old Regime

Use our free Income Tax Calculator to compare tax liabilities under the New Tax Regime and Old Tax Regime for Financial Year 2025-26 (Assessment Year 2026-27) and Financial Year 2026-27. Accurately calculate deductions under Section 80C, 80D, Standard Deduction, and HRA to optimize your net tax savings.

1. Basic Details

Age Category

Employee Category

2. Annual Income Details (₹)

Annual Basic Pay

Annual Dearness Allowance (DA)

HRA Received (Annual)

Other Allowances / Perks

Employer NPS Contribution — Sec 80CCD(2) Govt Employees: 14% of (Basic + DA). Fully deductible in BOTH regimes.

Income from Other Sources (Interest, Savings, etc.)

3. Old Regime Deductions & Exemptions

Note: These deductions apply ONLY to the Old Tax Regime.

Annual Rent Paid (for HRA Exemption)

City Type

Sec 80C (GPF/CPF, PPF, LIC, Tuition Fee, ELSS) Max limit: ₹1,50,000

Sec 80CCD(1B) — Employee NPS Voluntary Max limit: ₹50,000

Sec 80D (Health Insurance / CGHS)

Home Loan Interest — Sec 24(b) Max limit: ₹2,00,000

Professional Tax Paid

Other Deductions (80E, 80G, etc.)

Tax Computation Comparison

Disclaimer: Computed using FY 2026-27 (AY 2027-28) tax rates. New Regime features ₹4,00,000 basic exemption, ₹75,000 standard deduction, and full Sec 87A tax rebate up to ₹12,00,000 taxable income (with marginal relief applied). Old Regime retains standard deduction of ₹50,000. Health & Education Cess of 4% is included. High-income surcharge (above ₹50 Lakhs) is excluded. This tool provides estimations for awareness only.

Section 80CCD(2): Explain that Central Govt employees receive up to 14% employer NPS tax exemption under both old and new regimes.

HRA Exemptions: Detail the 50% (Metro) vs 40% (Non-Metro) rules for rent paid under the Old Regime.

Budget 2026 Slabs: Outline the current slabs and tax rebate limit under Section 87A (taxable income up to ₹12 Lakhs is tax-free in the New Regime).

Calculate your retirement benefits using our 7th CPC Pension Calculator, or estimate future pay revisions with the 8th CPC Pay Calculator