Income tax slabs for FY 2026-27
Budget 2026 kept last year's slabs. These apply to income earned from 1 April 2026 to 31 March 2027.
| New regime 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% |
| Old regime income (below 60) | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
In the old regime the nil slab is ₹3 lakh for people aged 60 to 79 and ₹5 lakh for those 80 or above.
How the calculator works
- Taxable income = gross income − standard deduction − allowed deductions. The new regime allows only the standard deduction and employer NPS contribution.
- Slab tax is worked out band by band.
- Rebate under Section 87A: up to ₹60,000 in the new regime when taxable income is ₹12 lakh or less, and up to ₹12,500 in the old regime up to ₹5 lakh. Marginal relief applies just above ₹12 lakh in the new regime.
- Surcharge of 10%, 15% or 25% applies above ₹50 lakh, ₹1 crore and ₹2 crore (37% above ₹5 crore in the old regime), with marginal relief.
- Cess of 4% is added on tax plus surcharge.
When does the old regime still make sense?
The old regime wins only when your deductions are large. A common example is someone paying high rent in a metro (big HRA exemption), with a home loan and full 80C. Enter your real numbers above. Work out your HRA figure with the HRA exemption calculator, and see your monthly take-home with the in-hand salary calculator.
Note: the Income-tax Act, 2025 renumbers many sections from 1 April 2026. We use the familiar names (80C, 80D, 87A) because most people and payslips still use them.