Is NPS 100% tax-free at maturity?

No — 60% of the NPS corpus can be withdrawn tax-free. The remaining 40% must be used to purchase an annuity (pension), which is taxable as income. Total tax efficiency depends on your annuity income and tax slab in retirement.

What is the 14% employer NPS contribution benefit?

Under the New Tax Regime (Finance Act 2024), employer's NPS contribution up to 14% of basic+DA is tax-deductible for the employer and exempt for the employee (within the ₹7.5L combined limit for NPS+EPF+superannuation).

Can I withdraw NPS before 60?

Partial withdrawal (25% of employee contributions) is allowed after 3 years for specified purposes (education, medical, housing). Full premature exit before 60 requires 80% to be used for annuity purchase, with 20% tax-free.

NPS CalculatorFY 2026-27

Plan your NPS corpus with 14% New Regime employer rates (Finance Act 2024) and the ₹7.5L combined employer contribution cap.

Share this calculation:

Documentation

Quick Summary: NPS Calculator

The National Pension System (NPS) is a market-linked voluntary contribution scheme. In FY 2026-27, you can save up to ₹2 Lakh tax-free (Old Regime) and withdraw 60% of the corpus tax-free at age 60, while using the remaining 40% to purchase a regular pension annuity.

Related Calculators

VPF vs NPS Comparator

Retirement Corpus Gap

EPF Calculator

NPS Tier 2 Calculator

Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.