Quick answer
For Tax Year 2026-27, the new regime slabs are: up to ₹4 lakh nil; ₹4–8 lakh 5%; ₹8–12 lakh 10%; ₹12–16 lakh 15%; ₹16–20 lakh 20%; ₹20–24 lakh 25%; above ₹24 lakh 30%. A rebate makes income up to ₹12 lakh tax-free (₹12.75 lakh for salaried people). Budget 2026 made no change to slabs.
New tax regime (default)
| Taxable income | Rate |
|---|---|
| ₹0 – ₹4,00,000 | Nil |
| ₹4,00,000 – ₹8,00,000 | 5% |
| ₹8,00,000 – ₹12,00,000 | 1% |
| ₹12,00,000 – ₹16,00,000 | 15% |
| ₹16,00,000 – ₹20,00,000 | 2% |
| ₹20,00,000 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 3% |
- Standard deduction: ₹75,000 (salaried and pensioners)
- Section 87A rebate: up to ₹60,000 when taxable income ≤ ₹12 lakh, with marginal relief just above
- Surcharge: 10% (>₹50L), 15% (>₹1Cr), 25% (>₹2Cr), plus 4% cess
Old tax regime
| Taxable income | Below 60 | 60–79 | 80+ |
|---|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil | Nil |
| ₹2.5 – 3 lakh | 5% | Nil | Nil |
| ₹3 – 5 lakh | 5% | 5% | Nil |
| ₹5 – 10 lakh | 20% | 20% | 20% |
| Above ₹10 lakh | 30% | 30% | 30% |
- Standard deduction: ₹50,000 · Rebate: up to ₹12,500 if taxable income ≤ ₹5 lakh
- Deductions allowed: 80C (₹1.5L), 80D, 80CCD(1B) (₹50K), HRA, home loan interest (₹2L) and more
Tax on common salaries (FY 2026-27)
| Gross salary | Taxable (new) | Tax — new regime | Tax — old regime* |
|---|---|---|---|
| ₹4,00,000 | ₹3,25,000 | ₹0 | ₹0 |
| ₹8,00,000 | ₹7,25,000 | ₹0 | ₹28,600 |
| ₹12,00,000 | ₹11,25,000 | ₹0 | ₹1,11,800 |
| ₹12,75,000 | ₹12,00,000 | ₹0 | ₹1,32,600 |
| ₹13,00,000 | ₹12,25,000 | ₹26,000 | ₹1,40,400 |
| ₹16,00,000 | ₹15,25,000 | ₹1,13,100 | ₹2,34,000 |
| ₹20,00,000 | ₹19,25,000 | ₹1,92,400 | ₹3,58,800 |
| ₹24,00,000 | ₹23,25,000 | ₹2,92,500 | ₹4,83,600 |
| ₹30,00,000 | ₹29,25,000 | ₹4,75,800 | ₹6,70,800 |
| ₹50,00,000 | ₹49,25,000 | ₹10,99,800 | ₹12,94,800 |
*Old regime assumes ₹1.5 lakh 80C and ₹25,000 80D. Includes 4% cess. Calculate your exact tax →
Frequently asked questions
What are the income tax slabs for FY 2026-27?
New regime: nil up to ₹4 lakh, 5% for ₹4–8 lakh, 10% for ₹8–12 lakh, 15% for ₹12–16 lakh, 20% for ₹16–20 lakh, 25% for ₹20–24 lakh and 30% above ₹24 lakh. Budget 2026 kept these unchanged.
Is FY 2026-27 called "Tax Year 2026-27"?
Yes. Under the Income-tax Act, 2025 (in force from 1 April 2026), the "previous year" and "assessment year" are replaced by a single "tax year". Income earned from April 2026 to March 2027 is Tax Year 2026-27.
What were the slabs for FY 2025-26 (AY 2026-27)?
The same as FY 2026-27. The new slabs and the ₹12 lakh rebate were introduced in Budget 2025 and apply to both years.
What is the old to new section mapping for common deductions?
Under the Income-tax Act, 2025, Section 80C is now Section 123 and Section 80D is Section 126. Exemptions such as HRA (formerly 10(13A)) have moved to schedules. The limits are unchanged.