Tax SlabsNew tax regime slabs for tax year 2026-27 (FY 2026-27)
These are the income tax slabs of the new regime for individuals for income earned from 1 April 2026 to 31 March 2027. They are the same as in financial year 2025-26. The new regime is the default: it applies unless you opt for the old one.
| Taxable income in the year | Rate on that part |
|---|---|
| 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% |
The three things that go with the slabs
- Standard deduction: salaried people and pensioners take ₹75,000 off their salary before applying the slabs.
- Rebate: a resident individual whose taxable income is not more than ₹12,00,000 pays no tax at all. That makes a salary up to ₹12,75,000 tax-free.
- Cess: 4% health and education cess is added to the tax. A surcharge applies only above ₹50 lakh.
How slabs work: only the part in each slab is taxed at its rate
A common mistake is to think that crossing into a higher slab raises the tax on all the income. It does not. Each rate applies only to the slice of income inside its slab. For a salary of ₹15,00,000: the standard deduction leaves a taxable income of ₹14,25,000, and the tax is built up like this:
- Nil on ₹4,00,000 (the first ₹4,00,000): ₹0
- 5% on ₹4,00,000 (from ₹4,00,000 to ₹8,00,000): ₹20,000
- 10% on ₹4,00,000 (from ₹8,00,000 to ₹12,00,000): ₹40,000
- 15% on ₹2,25,000 (from ₹12,00,000 to ₹14,25,000): ₹33,750
That adds up to ₹93,750. With 4% cess the tax for the year is ₹97,500, about ₹8,125 a month.
Tax at some salary levels
| Salary in the year | Taxable income | Tax with cess | A month |
|---|---|---|---|
| ₹8,00,000 | ₹7,25,000 | ₹0 | ₹0 |
| ₹10,00,000 | ₹9,25,000 | ₹0 | ₹0 |
| ₹12,75,000 | ₹12,00,000 | ₹0 | ₹0 |
| ₹13,00,000 | ₹12,25,000 | ₹26,000 | ₹2,167 |
| ₹15,00,000 | ₹14,25,000 | ₹97,500 | ₹8,125 |
| ₹20,00,000 | ₹19,25,000 | ₹1,92,400 | ₹16,033 |
| ₹25,00,000 | ₹24,25,000 | ₹3,19,800 | ₹26,650 |
| ₹50,00,000 | ₹49,25,000 | ₹10,99,800 | ₹91,650 |
For a resident salaried individual with no other income, standard deduction taken. Longer table.
Just above ₹12,00,000: marginal relief
Without a safeguard, earning one rupee over ₹12,00,000 would bring a tax bill of more than ₹60,000. So the law gives marginal relief: just above the limit, the tax cannot be more than the amount by which the income exceeds ₹12,00,000. On a taxable income of ₹12,10,000, for example, the slab tax would be ₹61,500, but the tax is limited to ₹10,000 before cess. The relief fades out at about ₹12.7 lakh of taxable income.
What you give up in the new regime
Most deductions and exemptions of the old regime are not available: section 80C investments, health insurance under 80D, house rent allowance and interest on a home loan for a house you live in. The employer's contribution to the National Pension System under section 80CCD(2) stays deductible. Whether the lower rates outweigh the lost deductions is a matter of arithmetic: compare the two.
Common questions
Up to what income is there no tax in the new regime?
A resident individual with taxable income up to ₹12,00,000 pays no income tax in the new regime, because of the rebate. With the standard deduction of ₹75,000, a salaried person pays none up to a salary of ₹12,75,000.
Does the new regime have different slabs for senior citizens?
No. The new regime has one set of slabs for every age. Only the old regime has higher starting limits for people aged 60 and above.
Is the new regime the default?
Yes. The new regime applies unless you choose the old one. People without business income can make that choice each year when filing the return.
Sources
- Slabs of both regimes, surcharge and cess for tax year 2026-27: Memorandum explaining the provisions of the Finance Bill, 2026, Ministry of Finance (February 2026), which states that no change is proposed in these rates.
- The same rates, the rebate limits and the deduction limits for financial year 2025-26: Income Tax Department, e-filing portal help page "Salaried Individuals for AY 2026-27".
- Checked on 11 November 2026.
Rates checked on 11 November 2026 against the Finance Bill, 2026 memorandum and the Income Tax Department's e-filing help pages. Tax law changes with every Budget and has many special cases. This page is general information and arithmetic, not tax advice: confirm your own position at incometax.gov.in or with a tax professional.