Income Tax Calculator FY 2026-27 (New vs Old Regime)
Includes ₹75,000 Standard Deduction, Sec 87A Free Tax up to ₹12L & Employer 14% NPS Sec 80CCD(2) Deduction
| Tax Parameter (Annual) | 7th CPC (New Regime) | 7th CPC (Old Regime) | 8th CPC (New Regime) |
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One-Tap Government Post Presets (Railway, Defence, CAPF, SSC, Medical)
Tap any post to load its exact Pay Level, Entry Basic Pay, and special allowances into the calculator
Income tax for government employees, FY 2026-27
This calculator works out the income tax on your salary under both the new tax regime and the old tax regime, and tells you which one saves you more. Under the new regime, salaried employees get a ₹75,000 standard deduction and the Section 87A rebate makes taxable income up to ₹12 lakh tax-free, with marginal relief just above that limit. Employer NPS contribution under Section 80CCD(2) is deductible in both regimes.
Under the old regime you can also claim Section 80C (up to ₹1.5 lakh), Section 80D health insurance, and HRA exemption under Section 10(13A). Health and education cess of 4% is added in both regimes.
The one-tap presets load typical pay for common posts in Railways, Defence, CAPF, SSC and medical services into the salary calculator.
Frequently asked questions
Is income up to ₹12 lakh tax-free for government employees?
Under the new tax regime, taxable income up to ₹12 lakh has no tax because of the Section 87A rebate. With the ₹75,000 standard deduction, salary up to ₹12.75 lakh is effectively tax-free.
Which tax regime is better for central government employees?
It depends on your deductions. The old regime can be better if you claim large HRA exemption, Section 80C and 80D deductions; otherwise the new regime usually gives lower tax. The calculator above compares both for your salary.
Is employer NPS contribution taxable?
Employer contribution to NPS is deductible under Section 80CCD(2) in both tax regimes, up to 14% of basic pay plus DA for central government employees.