Here are the official income tax slabs for FY 2026-27 (tax year 2026-27, AY 2027-28): the income tax slab rates under the new and old tax regime for salaried employees, pensioners and other individuals of every age group, with the rebate, surcharge and 4% cess, plus how the slabs changed from FY 2023-24 and FY 2024-25. Budget 2026 made no change to the rates, so FY 2026-27 uses the same slabs as FY 2025-26. What changed is the law: the Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, with new section numbers.
Quick answer: in the new regime, taxable income up to ₹12 lakh pays no tax because of the ₹60,000 rebate, so a salary of up to ₹12.75 lakh is tax-free after the ₹75,000 standard deduction. The old regime still starts at 5% above ₹2.5 lakh and reaches 30% above ₹10 lakh.
New Tax Regime Slabs FY 2026-27
The new regime (Section 202 of the Income-tax Act, 2025; earlier Section 115BAC) is the default. The slabs are the same for every age.
| Taxable income | Rate | Tax at the top of the slab |
|---|---|---|
| Up to ₹4,00,000 | Nil | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 to ₹12,00,000 | 10% | ₹60,000 |
| ₹12,00,001 to ₹16,00,000 | 15% | ₹1,20,000 |
| ₹16,00,001 to ₹20,00,000 | 20% | ₹2,00,000 |
| ₹20,00,001 to ₹24,00,000 | 25% | ₹3,00,000 |
| Above ₹24,00,000 | 30% | ₹3,00,000 + 30% of income above ₹24 lakh |
"Tax at the top of the slab" is the slab tax before rebate and cess. Each rate applies only to the income inside that band. In the new regime you get the ₹75,000 standard deduction and the employer's NPS contribution (up to 14% of Basic + DA), but not HRA, 80C, 80D or home loan interest on a self-occupied house.
Old Tax Regime Slabs FY 2026-27 (Including Senior Citizens)
The old regime has different exemption limits by age. You must choose it, as the new regime applies by default.
| Taxable income | Below 60 | 60 to 79 (senior) | 80 and above (super senior) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 to ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 to ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
| Tax at ₹10 lakh (before cess) | ₹1,12,500 | ₹1,10,000 | ₹1,00,000 |
The senior citizen limits apply only to residents. In the new regime there is no separate senior citizen slab; everyone gets nil tax up to ₹4 lakh.
Tax on Taxable Income: New vs Old Regime
Total tax including 4% cess, on taxable income (after deductions), for a resident below 60.
| Taxable income | New regime | Old regime |
|---|---|---|
| ₹5,00,000 | Nil | Nil |
| ₹8,00,000 | Nil | ₹75,400 |
| ₹10,00,000 | Nil | ₹1,17,000 |
| ₹12,00,000 | Nil | ₹1,79,400 |
| ₹12,50,000 | ₹52,000 | ₹1,95,000 |
| ₹15,00,000 | ₹1,09,200 | ₹2,73,000 |
| ₹20,00,000 | ₹2,08,000 | ₹4,29,000 |
| ₹24,00,000 | ₹3,12,000 | ₹5,53,800 |
| ₹30,00,000 | ₹4,99,200 | ₹7,41,000 |
| ₹50,00,000 | ₹11,23,200 | ₹13,65,000 |
The old regime column looks higher because these are the same taxable incomes; in practice the old regime's deductions lower your taxable income first. To compare on your actual salary, use our income tax calculator, or see the step-by-step method in how to calculate income tax on salary.
Rebate Under Section 156 (Earlier 87A) and Zero Tax up to ₹12.75 Lakh
- New regime: rebate up to ₹60,000 if taxable income is ₹12 lakh or less. Slab tax at ₹12 lakh is exactly ₹60,000, so tax is nil. With the ₹75,000 standard deduction, a salary of ₹12.75 lakh pays nothing.
- Marginal relief: just above ₹12 lakh, tax cannot be more than the income above ₹12 lakh. At ₹12.5 lakh taxable, slab tax is ₹67,500 but tax is limited to ₹50,000 (₹52,000 with cess). The relief ends at about ₹12.7 lakh.
- Old regime: rebate up to ₹12,500 if taxable income is ₹5 lakh or less, with no marginal relief.
- The rebate is for resident individuals and does not apply to tax on special-rate income such as capital gains.
Standard Deduction and Deductions by Regime
| Item | New regime | Old regime | Section (2025 Act / 1961 Act) |
|---|---|---|---|
| Standard deduction (salary, pension) | ₹75,000 | ₹50,000 | 19 / 16(ia) |
| Professional tax | No | Up to ₹2,500 | 19 / 16(iii) |
| HRA exemption | No | Yes | Schedule III / 10(13A) |
| 80C: PF, PPF, ELSS, LIC, principal, fees | No | ₹1,50,000 | 123 / 80C |
| Own NPS 80CCD(1B) | No | ₹50,000 | 124 / 80CCD |
| Employer NPS 80CCD(2) | 14% of Basic + DA | 10% (14% government) | 124 / 80CCD |
| 80D health insurance | No | ₹25,000 + ₹25,000 parents (₹50,000 each for seniors) | 126 / 80D |
| Home loan interest, self-occupied | No | ₹2,00,000 | 22 / 24(b) |
| 80E education loan interest | No | Full interest, 8 years | 129 / 80E |
| 80TTA / 80TTB interest | No | ₹10,000 / ₹50,000 (60+) | 153 / 80TTA, 80TTB |
The old regime only wins if these add up to a large amount, for example about ₹5.44 lakh at a ₹15 lakh salary. Read old vs new tax regime with examples to decide, and work out your HRA with our HRA exemption calculator.
Surcharge Rates and Marginal Relief
| Taxable income | New regime | Old regime |
|---|---|---|
| Up to ₹50 lakh | Nil | Nil |
| Above ₹50 lakh to ₹1 crore | 10% | 10% |
| Above ₹1 crore to ₹2 crore | 15% | 15% |
| Above ₹2 crore to ₹5 crore | 25% | 25% |
| Above ₹5 crore | 25% (capped) | 37% |
Surcharge is a percentage of the tax, not of income. Marginal relief applies just above each threshold: the extra tax plus surcharge cannot be more than the income above the threshold. Example, old regime, ₹51 lakh taxable income: slab tax is ₹13,42,500, and with the 10% surcharge it would be ₹14,76,750. But tax at ₹50 lakh is ₹13,12,500 and the income above ₹50 lakh is only ₹1,00,000, so tax plus surcharge is limited to ₹14,12,500, or ₹14,69,000 with cess.
Health and Education Cess: 4% on Tax and Surcharge
Every taxpayer pays a 4% health and education cess on income tax plus surcharge, after any rebate. It replaced the 3% education cess from FY 2018-19 and is the same in both regimes.
- Calculation: cess = 4% × (tax after rebate + surcharge − marginal relief). If the rebate makes tax nil, cess is also nil.
- Example: old regime, ₹10 lakh taxable income → tax ₹1,12,500 + cess ₹4,500 = ₹1,17,000.
- Cess is not a surcharge, and it cannot be claimed as a deduction.
Income Tax Slab History: FY 2023-24 to FY 2026-27 (New Regime)
| Rate | FY 2023-24 | FY 2024-25 | FY 2025-26 and FY 2026-27 |
|---|---|---|---|
| Nil | Up to ₹3 lakh | Up to ₹3 lakh | Up to ₹4 lakh |
| 5% | ₹3–6 lakh | ₹3–7 lakh | ₹4–8 lakh |
| 10% | ₹6–9 lakh | ₹7–10 lakh | ₹8–12 lakh |
| 15% | ₹9–12 lakh | ₹10–12 lakh | ₹12–16 lakh |
| 20% | ₹12–15 lakh | ₹12–15 lakh | ₹16–20 lakh |
| 25% | — | — | ₹20–24 lakh |
| 30% | Above ₹15 lakh | Above ₹15 lakh | Above ₹24 lakh |
| Standard deduction | ₹50,000 | ₹75,000 | ₹75,000 |
| Rebate | Up to ₹25,000, income ≤ ₹7 lakh | Up to ₹25,000, income ≤ ₹7 lakh | Up to ₹60,000, income ≤ ₹12 lakh |
The old regime slabs, ₹50,000 standard deduction and ₹12,500 rebate are the same in all four years. Use the FY 2024-25 column only for returns and revisions of that year.
Tax Year 2026-27 and the Income-tax Act, 2025
From 1 April 2026, the Income-tax Act, 2025 uses one term, tax year, in place of "previous year" and "assessment year". FY 2026-27 is tax year 2026-27, and its return is filed in 2027 (earlier called AY 2027-28). The rates did not change with the new Act, but section numbers did: new regime 202 (was 115BAC), rebate 156 (was 87A), standard deduction 19 (was 16), 80C 123, 80D 126. Income for FY 2025-26 is still governed by the 1961 Act. See the Income Tax Department and the e-filing portal for the Act and forms.
Prefer to work offline? Download our free income tax calculator Excel, which uses these slabs.
Frequently Asked Questions
What are the income tax slabs for FY 2026-27?
New regime: nil up to ₹4 lakh, 5% up to ₹8 lakh, 10% up to ₹12 lakh, 15% up to ₹16 lakh, 20% up to ₹20 lakh, 25% up to ₹24 lakh and 30% above. Old regime: nil up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above.
Did Budget 2026 change the income tax slabs?
No. FY 2026-27 uses the same slabs, rebate and standard deduction as FY 2025-26. Only the law and section numbers changed under the Income-tax Act, 2025.
Is ₹12 lakh income tax-free in FY 2026-27?
Yes, in the new regime. Taxable income up to ₹12 lakh gets a rebate of up to ₹60,000, so tax is nil. For salaried people, that means a salary of up to ₹12.75 lakh.
What is the income tax slab for senior citizens?
In the old regime, residents aged 60 to 79 pay nil up to ₹3 lakh and those aged 80 and above nil up to ₹5 lakh, then 5% (up to ₹5 lakh), 20% and 30%. The new regime has no separate senior slab: nil up to ₹4 lakh for everyone.
What were the income tax slabs for FY 2024-25?
New regime: nil up to ₹3 lakh, 5% up to ₹7 lakh, 10% up to ₹10 lakh, 15% up to ₹12 lakh, 20% up to ₹15 lakh and 30% above, with a ₹75,000 standard deduction and rebate up to ₹7 lakh. The old regime was the same as today.
What is the standard deduction in FY 2026-27?
₹75,000 in the new regime and ₹50,000 in the old regime, for salary and pension income.
How is the 4% cess calculated?
Cess is 4% of income tax plus surcharge, after rebate and marginal relief. For example, tax of ₹1,12,500 attracts ₹4,500 cess, so the total is ₹1,17,000.
When does surcharge apply?
Only when taxable income is above ₹50 lakh: 10% up to ₹1 crore, 15% up to ₹2 crore and 25% above. In the old regime it rises to 37% above ₹5 crore; the new regime caps it at 25%.
Which tax regime has lower slab rates?
The new regime has lower rates and wider slabs, but allows few deductions. The old regime has higher rates but allows HRA, 80C, 80D, home loan interest and more. Which costs less depends on your deductions.
What is tax year 2026-27?
Under the Income-tax Act, 2025, the tax year is the financial year, 1 April 2026 to 31 March 2027. It replaces the terms previous year and assessment year (AY 2027-28).