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Tax Year 2026-27 · 1 April 2026 to 31 March 2027Income Tax Slabs for Tax Year 2026-27
New (default) regime and old regime rates under the Income-tax Act, 2025 — with the rebate, standard deduction, surcharge and cess explained simply, and a quick calculator to compare both regimes.
From 1 April 2026 the Act uses one term — Tax Year — in place of “financial year” and “assessment year”. Slab rates are unchanged from Budget 2025. Last updated 6 October 2026.
Slab rates
New regime Default
Section 202 · same slabs for every age
| Taxable 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% |
Legal basis: Section 202 of the Income-tax Act, 2025.
Old regime Optional
Allows deductions & exemptions · slabs depend on age
Below 60 years
| 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% |
Senior citizen (60 to 79 years)
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Super senior citizen (80 years and above)
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Rebate, standard deduction, surcharge & cess
Rebate and standard deduction
| New regime | Old regime | |
|---|---|---|
| Rebate (Section 156) — resident individuals | Up to ₹60,000 if income ≤ ₹12,00,000 | Up to ₹12,500 if income ≤ ₹5,00,000 |
| Zero tax up to | ₹12,00,000 (₹12,75,000 salary) | ₹5,00,000 |
| Standard deduction (Section 19) — salary / pension | ₹75,000 | ₹50,000 |
| Deductions (e.g. Section 123, the former 80C) | Mostly not allowed | Allowed |
- Marginal relief (new regime): if income is just above ₹12 lakh, the tax is limited to the amount by which income exceeds ₹12 lakh — so crossing the limit never costs more tax than the extra income earned.
Surcharge and cess
| Total income | New | Old |
|---|---|---|
| Up to ₹50 lakh | Nil | Nil |
| ₹50 lakh – ₹1 crore | 10% | 10% |
| ₹1 crore – ₹2 crore | 15% | 15% |
| ₹2 crore – ₹5 crore | 25% | 25% |
| Above ₹5 crore | 25% | 37% |
- Surcharge is a percentage of the income tax, not of income.
- Health & education cess: 4% is added on tax plus surcharge, in both regimes.
Tax at a glance
Tax payable on taxable income (after deductions), resident individual below 60, including 4% cess and the rebate. Old regime shown without any further deductions.
| 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 |
| ₹12,75,000 | ₹74,100 | ₹2,02,800 |
| ₹15,00,000 | ₹1,09,200 | ₹2,73,000 |
| ₹20,00,000 | ₹2,08,000 | ₹4,29,000 |
| ₹25,00,000 | ₹3,43,200 | ₹5,85,000 |
| ₹30,00,000 | ₹4,99,200 | ₹7,41,000 |
| ₹50,00,000 | ₹11,23,200 | ₹13,65,000 |
Amounts rounded to the nearest rupee. Incomes above ₹50 lakh also attract surcharge.
Compare both regimes
Quick estimator
Salaried individuals and pensioners · resident · income up to ₹50 lakh
Result
Enter your income and press Compare tax.
For a full salary computation — DA, HRA, arrears, monthly income sheet — use the AP calculator or the TG calculator.
Frequently asked questions
What is a “Tax Year”? Are FY and AY no longer used?
Under the Income-tax Act, 2025, which applies from 1 April 2026, the separate terms “previous year” (financial year) and “assessment year” are replaced by a single term — the Tax Year. Tax Year 2026-27 runs from 1 April 2026 to 31 March 2027, and income is taxed in the same Tax Year it is earned. Older articles may still call it “FY 2026-27 / AY 2027-28”.
Is income up to ₹12 lakh really tax-free?
Under the new (default) regime, a resident individual whose total income is up to ₹12,00,000 gets a rebate of up to ₹60,000 under section 156, so no tax is payable. A salaried person or pensioner also gets the ₹75,000 standard deduction, so salary up to ₹12,75,000 ends up with nil tax. The rebate does not cover tax on special-rate income such as certain capital gains.
Which regime applies if I do nothing?
The new regime (section 202) is the default. You can choose the old regime instead, which allows deductions and exemptions such as section 123 (the former 80C), HRA and home-loan interest, but has a lower rebate and higher slab rates.
Are the slabs different for senior citizens?
Not under the new regime — the ₹4 lakh basic limit is the same at every age. Under the old regime the basic exemption is ₹3 lakh for ages 60–79 and ₹5 lakh for ages 80 and above.
This page is for general information only and is not tax advice. Rates reflect the Income-tax Act, 2025 as applicable to Tax Year 2026-27 (the slab structure introduced by the Finance Act 2025 continues). The estimator ignores surcharge, special-rate incomes, rebate conditions for non-residents and other individual circumstances — please verify with the Act or a tax professional before filing.