Income tax slabs 2026-27
| New regime (default) | Rate | Old regime (below 60) | Rate |
|---|---|---|---|
| Up to ₹4 lakh | Nil | Up to ₹2.5 lakh | Nil |
| ₹4–8 lakh | 5% | ₹2.5–5 lakh | 5% |
| ₹8–12 lakh | 10% | ₹5–10 lakh | 20% |
| ₹12–16 lakh | 15% | Above ₹10 lakh | 30% |
| ₹16–20 lakh | 20% | ||
| ₹20–24 lakh | 25% | ||
| Above ₹24 lakh | 30% |
- Standard deduction: ₹75,000 (new) / ₹50,000 (old) for salaried people.
- Rebate: residents pay no tax up to ₹12 lakh taxable income under the new regime (₹5 lakh old), with marginal relief just above. NRIs don’t get it — see NRI taxation.
- Surcharge: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore (37% above ₹5 crore in the old regime only), with marginal relief; 4% cess on top.
- New section numbers: Income-tax Act 2025 mapping. Advance tax: due dates and calculator.
Frequently asked questions
Is income up to ₹12 lakh tax-free in 2026-27?
For resident individuals under the new regime, yes — the section 156 (old 87A) rebate of up to ₹60,000 covers tax on taxable income up to ₹12 lakh; with the ₹75,000 standard deduction, salary up to ₹12.75 lakh is effectively tax-free. It doesn't apply to NRIs or to special-rate income like capital gains.
Which is better, the new or old tax regime?
The new regime is better for most people unless old-regime deductions — 80C, 80D, home-loan interest, HRA — are large. The calculator compares both for your numbers.
What are the income tax slabs for 2026-27?
New regime: nil up to ₹4 lakh, then 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above. Budget 2026 made no change.