Income tax slabs for FY 2026-27
Budget 2026 made no changes to personal income tax slabs, so FY 2026-27 uses the same rates as FY 2025-26.
New tax regime (default)
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
- Standard deduction: ₹75,000 for salaried people and pensioners.
- 87A rebate: up to ₹60,000, so tax is zero if taxable income is up to ₹12 lakh. Marginal relief applies just above ₹12 lakh.
- Most deductions (80C, 80D, HRA, home loan interest on a self-occupied house) are not allowed.
Old tax regime
| Taxable income | Below 60 | 60–79 | 80+ |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
- Standard deduction: ₹50,000 for salaried people.
- 87A rebate: up to ₹12,500 if taxable income is up to ₹5 lakh.
Surcharge and cess (both regimes)
Surcharge is 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore and 37% above ₹5 crore. The new regime caps it at 25%. A 4% Health & Education Cess is added on top of tax plus surcharge.
Old vs new regime: which should you choose?
For most people the new regime now gives lower tax, especially with income up to about ₹12.75 lakh (salaried), where tax is zero. The old regime can still win if you claim large deductions: full 80C, HRA in a metro, home loan interest and health insurance together. Enter your real numbers above to check.
Frequently asked questions
Is a ₹12.75 lakh salary really tax-free?
Yes, under the new regime. ₹12.75 lakh minus the ₹75,000 standard deduction is ₹12 lakh of taxable income, and the 87A rebate cancels all the tax on it.
Can I switch between regimes every year?
Salaried people can choose each year when filing their return. People with business income have limited options to switch back and forth.
Does this include capital gains?
No. Capital gains, such as on shares and mutual funds, have special rates and are not covered here. The 87A rebate also doesn't apply to some special-rate income.
This calculator gives an estimate for resident individuals and is not tax advice. Rules are simplified: capital gains, employer NPS (80CCD(2)) and special-rate income are not included. Check with a tax professional before filing.