Income tax, FY 2026-27
New tax regime slabs for 2026-27
The slab rates, standard deduction, rebate, surcharge and cess for tax year 2026-27, the first year under the Income-tax Act 2025.
New regime slabs
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Taxable income is your salary less the ₹75,000 standard deduction and any employer NPS contribution, rounded to the nearest ₹10. The new regime is the default unless you choose the old one. Sources: Income-tax Act 2025, section 202 (tax rates); section 19 (standard deduction); section 516 (rounding).
No tax up to ₹12 lakh
If taxable income is ₹12 lakh or less, a rebate of up to ₹60,000 under section 156 cancels the tax. With the standard deduction, that means a salary of up to ₹12,75,000 pays no income tax. Just above the limit, marginal relief caps the tax at the income above ₹12 lakh. section 156 (rebate).
Tax on common salaries
| Gross salary | New regime taxable income | New regime tax | Old regime tax (no deductions) |
|---|---|---|---|
| ₹8,00,000 | ₹7,25,000 | ₹0 | ₹64,480 |
| ₹12,75,000 | ₹12,00,000 | ₹0 | ₹1,86,420 |
| ₹13,00,000 | ₹12,25,000 | ₹26,000 | ₹1,94,220 |
| ₹15,00,000 | ₹14,25,000 | ₹97,500 | ₹2,56,620 |
| ₹20,00,000 | ₹19,25,000 | ₹1,92,400 | ₹4,12,620 |
| ₹25,00,000 | ₹24,25,000 | ₹3,19,800 | ₹5,68,620 |
| ₹50,00,000 | ₹49,25,000 | ₹10,99,800 | ₹13,48,620 |
Tax includes the 4% cess. The old regime column uses only its ₹50,000 standard deduction; most people claim more. Figures are for salary with no PF, HRA or other income.
Surcharge and cess
| Taxable income | New regime surcharge | Old regime surcharge |
|---|---|---|
| Above ₹50 lakh | 10% | 10% |
| Above ₹1 crore | 15% | 15% |
| Above ₹2 crore | 25% | 25% |
| Above ₹5 crore | 25% | 37% |
Surcharge is charged on the tax, with marginal relief so that crossing a threshold never costs more than the extra income. A 4% health and education cess is then added to tax and surcharge. Budget 2026: Finance Bill 2026.
Old regime slabs
| Taxable income, under 60 | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
The basic exemption is ₹3,00,000 for people aged 60 to 79 and ₹5,00,000 for 80 and over. The standard deduction is ₹50,000, and a rebate of up to ₹12,500 applies where taxable income is ₹5 lakh or less. Compare the two regimes on your salary.
Tax year 2026-27
The Income-tax Act 2025 replaced the 1961 Act from 1 April 2026 and uses "tax year" in place of "previous year" and "assessment year". Tax year 2026-27 runs from 1 April 2026 to 31 March 2027, the same period as financial year 2026-27. Many sections have new numbers: 80C is now section 123, 80CCD is section 124 and 80D is section 126.
These figures are estimates based on the information you entered and the rules for tax year 2026-27 under the Income-tax Act 2025 as it stands after Budget 2026, EPFO notifications and state professional tax schedules. They are general information, not tax, financial or legal advice. Your actual in-hand salary can differ, for example because of your company's salary structure, variable pay, PF rules, your regime choice, TDS timing or your state. Check your payslip, or ask your payroll team or a chartered accountant, before relying on these figures.