This research proposes a four-level T-type inverter that is suitable for low-power applications. The presented topology outranks other types of inverters in terms of a smaller number of semiconductor devices, absence of passive components such as clamping diodes and flying capacitors, low switching and conduction losses, and high efficiency. The proposed topology is free from voltage deviation and unbalanced voltage occurrences that are present in other multilevel converters having clamping diodes or flying capacitors. The proposed inverter can extend to N levels using unequal dc-link voltage sources for medium-voltage application. The inverter employs the simple fundamental frequency staircase modulation technique. Moreover, this paper presents a current commutation strategy to prevent the occurrences of short circuit and minimizing the number of required switching devices and switching transitions, resulting in improving the efficiency of the inverter. This paper also analyses the theoretical converter losses showing lower switching and conduction losses when compared to existing four-level inverters. The experimental validation of the proposed inverter shows its operating feasibility and a low output voltage THD.