Last updated: 2026-10-21 · Rules for FY 2026-27 and FY 2025-26
Income tax slabs for FY 2026-27 (new regime)
The new regime is the default. Budget 2026 kept the same slabs as FY 2025-26. Salaried people get a ₹75,000 standard deduction, and a rebate makes tax zero if your taxable income is up to ₹12 lakh. That means a salary of up to ₹12.75 lakh pays no tax.
| Taxable income | Tax 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% |
Income tax slabs under the old regime
| Taxable income | Below 60 | 60 to 79 | 80 and above |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
The old regime gives a ₹50,000 standard deduction and a rebate of up to ₹12,500 if taxable income is ₹5 lakh or less.
Surcharge and cess
A 4% health and education cess is added to your tax in both regimes. If your taxable income is above ₹50 lakh, a surcharge also applies:
| Taxable income | New regime | Old regime |
|---|---|---|
| ₹50 lakh – ₹1 crore | 10% | 10% |
| ₹1 crore – ₹2 crore | 15% | 15% |
| ₹2 crore – ₹5 crore | 25% | 25% |
| Above ₹5 crore | 25% | 37% |
The calculator also applies marginal relief, so earning slightly more than a limit never makes you pay more in extra tax than the extra income itself.
Old vs new regime: which should you pick?
- Pick the new regime if you don't have big deductions. For most people earning up to about ₹15–20 lakh, it's cheaper.
- The old regime can win if you claim a lot together: full 80C, HRA in a big city, home loan interest, health insurance and NPS.
- The calculator tells you the exact amount of extra deductions you'd need for the old regime to match the new one.
- Salaried people can switch regimes every year when filing the return. People with business income can switch back only once.
Example: ₹15 lakh salary
New regime: ₹15,00,000 − ₹75,000 standard deduction = ₹14,25,000 taxable. Tax = ₹0 + ₹20,000 + ₹40,000 + ₹33,750 = ₹93,750, plus 4% cess = ₹97,500 a year (about ₹8,125 a month).
Old regime with ₹1.5 lakh 80C and ₹25,000 80D: ₹15,00,000 − ₹50,000 − ₹1,75,000 = ₹12,75,000 taxable. Tax = ₹12,500 + ₹1,00,000 + ₹82,500 = ₹1,95,000, plus cess = ₹2,02,800. Here the new regime saves over ₹1 lakh.
HRA exemption: the 8 cities that now get 50%
In the old regime, the HRA you can claim is the lowest of: (1) HRA received, (2) rent paid minus 10% of basic + DA, (3) 50% of basic + DA in a listed city, or 40% elsewhere. From FY 2026-27, Bengaluru, Hyderabad, Pune and Ahmedabad join Delhi, Mumbai, Kolkata and Chennai in the 50% group. The calculator uses the right list for the year you pick.
Frequently asked questions
Is income up to ₹12 lakh tax-free in FY 2026-27?
Yes, under the new regime. If your taxable income is ₹12 lakh or less, the Section 87A rebate (up to ₹60,000) cancels your tax. For salaried people, the ₹75,000 standard deduction means a salary of up to ₹12.75 lakh pays zero tax. The rebate does not cover special-rate income such as capital gains on shares.
Did Budget 2026 change the income tax slabs?
No. The slabs, standard deduction, rebate, surcharge and cess for FY 2026-27 are the same as FY 2025-26. The new Income-tax Act, 2025 came into force from 1 April 2026, but the rates were carried over.
Which deductions are allowed in the new regime?
Only a few: the ₹75,000 standard deduction for salaried people, employer's NPS contribution under 80CCD(2) up to 14% of basic + DA, the 30% standard deduction on rent from a let-out property, and some others such as Agniveer corpus contributions. 80C, 80D, HRA and home loan interest on a self-occupied house are not allowed.
What is marginal relief in the new regime?
If your taxable income is just above ₹12 lakh, you lose the rebate. Marginal relief makes sure the tax you pay is never more than the income above ₹12 lakh. For example, at ₹12,25,000 taxable income, tax is limited to ₹25,000 (plus cess) instead of ₹63,750.
How much tax will be deducted from my salary each month?
Your employer usually spreads your yearly tax evenly across the months, so it's roughly the yearly tax divided by 12. The calculator shows this monthly figure for both regimes.
Is my data safe?
Yes. The calculator runs entirely in your browser. Nothing you type is sent to our server.
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