Income Tax Slabs FY 2026-27
Complete reference for the slabs applicable to FY 2026-27 (Assessment Year 2027-28) under both regimes, with worked examples and the 87A rebate rules.
The new regime is the default
Effective from FY 2024-25 onwards, the New Regime is the default. Salaried individuals can still choose the Old Regime by submitting Form 10-IEA at the start of the year. Business and profession taxpayers can switch back to the Old Regime only once after which they are locked into the New Regime.
New Regime slabs for FY 2026-27
Per Budget 2025 (effective FY 2025-26 onwards):
| Income range | Rate | Tax (cumulative at top of slab) |
|---|---|---|
| Up to ₹4,00,000 | 0% | ₹0 |
| ₹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% | — |
Plus: standard deduction of ₹75,000 for salaried; full Section 87A rebate making tax effectively zero up to ₹12,00,000 taxable income (with marginal relief just above); 4% Health and Education Cess on tax; surcharge above ₹50 lakh.
- 0-4L: 0 = ₹0
- 4-8L: 4L × 5% = ₹20,000
- 8-12L: 4L × 10% = ₹40,000
- 12-15L: 3L × 15% = ₹45,000
Old Regime slabs for FY 2026-27
Old Regime slabs are age-banded:
Below 60 years
| Income range | Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior citizens (60-80 years)
| Income range | Rate |
|---|---|
| Up to ₹3,00,000 | 0% |
| ₹3,00,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Super senior (80+ years)
| Income range | Rate |
|---|---|
| Up to ₹5,00,000 | 0% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Plus: standard deduction of ₹50,000 (salaried); 80C, 80D, 80CCD(1B), HRA, home loan interest etc. deductions; Section 87A rebate up to ₹12,500 if taxable income ≤ ₹5L; 4% cess; surcharge.
- 0-2.5L: 0 = ₹0
- 2.5-5L: 2.5L × 5% = ₹12,500
- 5-10L: 5L × 20% = ₹1,00,000
- 10-12L: 2L × 30% = ₹60,000
Section 87A rebate — the ₹12 lakh story
Under the New Regime (post-Budget 2025), a resident individual whose taxable income does not exceed ₹12,00,000 gets a rebate that brings tax to zero. Just above that threshold, marginal relief applies so the additional tax doesn't exceed the additional income.
Under the Old Regime, the 87A rebate is up to ₹12,500 if taxable income ≤ ₹5,00,000.
- Less standard deduction ₹75,000 → taxable ₹12,00,000
- Tax before rebate = ₹60,000
- 87A rebate = ₹60,000 (full rebate)
- Net tax = ₹0
Surcharge slabs (FY 2026-27)
| Income range | Old Regime | New Regime |
|---|---|---|
| ₹50L to ₹1cr | 10% | 10% |
| ₹1cr to ₹2cr | 15% | 15% |
| ₹2cr to ₹5cr | 25% | 25% |
| Above ₹5cr | 37% | 25% (capped) |
Marginal relief is provided so the surcharge does not result in tax exceeding the income above the threshold.
Compute your actual tax
Use the GSTBox Income Tax Calculator to compute Old vs New regime side-by-side with your specific numbers and deductions.
Related
- Income Tax Calculator FY 2026-27 — Old vs New side-by-side
- Old vs New Regime — which one wins?
- HRA Exemption Calculator (Old Regime only)
- Salary Take-home Calculator
- Tax Glossary