New tax regime — slabs for FY 2026-27
- Up to ₹4,00,000 — Nil
- ₹4,00,001 to ₹8,00,000 — 5%
- ₹8,00,001 to ₹12,00,000 — 10%
- ₹12,00,001 to ₹16,00,000 — 15%
- ₹16,00,001 to ₹20,00,000 — 20%
- ₹20,00,001 to ₹24,00,000 — 25%
- Above ₹24,00,000 — 30%
A full rebate under Section 87A means a resident with taxable income up to ₹12,00,000 pays zero tax under the new regime. Salaried people also get a ₹75,000 standard deduction, so a salary up to about ₹12.75 lakh can be tax-free. Marginal relief protects incomes just above ₹12 lakh.
Old tax regime — slabs for FY 2026-27
- Up to ₹2,50,000 — Nil
- ₹2,50,001 to ₹5,00,000 — 5%
- ₹5,00,001 to ₹10,00,000 — 20%
- Above ₹10,00,000 — 30%
The old regime lets you claim deductions (80C, 80D, HRA, home-loan interest, etc.) plus a ₹50,000 standard deduction for the salaried, and gives a rebate when taxable income is up to ₹5,00,000. It usually wins only when your deductions are large.
A 4% Health & Education Cess is added on the tax in both regimes. This is a planning estimate for individuals below 60; surcharge on very high incomes and senior-citizen exemptions are not included.
Frequently asked questions
Which regime should I choose?
If you don't claim many deductions, the new regime is usually cheaper. If your 80C, HRA and home-loan deductions are large, the old regime can win. This tool compares both for your exact numbers.
Is income up to ₹12 lakh really tax-free?
Yes, under the new regime, thanks to the enhanced 87A rebate — and up to about ₹12.75 lakh for salaried people after the standard deduction.
Did Budget 2026 change the slabs?
No. Budget 2026 kept the FY 2025-26 slabs and rebate unchanged for FY 2026-27.