New regime slabs — FY 2026-27 (AY 2027-28)
| 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 individuals (new regime), ₹50,000 (old regime).
- Section 87A rebate: up to ₹60,000 — taxable income up to ₹12 lakh pays zero tax in the new regime. So salaried income up to ₹12.75 lakh is effectively tax-free.
- Marginal relief: if income is just above ₹12 lakh, tax is capped at the income exceeding ₹12 lakh.
- Cess: 4% Health & Education cess applies on the tax in both regimes.
Old regime slabs
| Income | 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% |
The old regime allows deductions such as 80C (₹1.5 lakh), 80D health insurance, HRA and home-loan interest. Its Section 87A rebate (₹12,500) applies up to ₹5 lakh taxable income. The new regime is the default — you must opt for the old regime when filing.
FAQs
Which regime is better?
If your total deductions (80C, HRA, home-loan interest etc.) are small, the new regime usually wins. With large deductions — typically above ₹4–5 lakh at higher incomes — the old regime can still be better. The calculator above compares both instantly.
Is income up to ₹12.75 lakh really tax-free?
For salaried people in the new regime, yes: the ₹75,000 standard deduction brings ₹12.75 lakh gross down to ₹12 lakh taxable, on which the Section 87A rebate cancels the entire tax. You still must file a return.
Did Budget 2026 change the slabs?
No — Budget 2026 kept the slabs introduced earlier, so FY 2026-27 uses the same structure as FY 2025-26.