FY 2026-27 · AY 2027-28
Income tax slabs, without the fine-print hunt
Both regimes for FY 2026-27, the rebate that makes income up to ₹12 lakh tax-free, and the surcharge tiers above it — sourced from the same numbers our calculator uses.
New regime · default
FY 2026-27| 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% |
Old regime · opt-in
FY 2026-27| Taxable income | Rate |
|---|---|
| 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% |
Standard deduction
₹75,000
New regime, on salary income. The old regime allows ₹50,000.
87A rebate
Up to ₹60,000
For taxable income up to ₹12,00,000 under the new regime — which zeroes out tax entirely up to that point.
Marginal relief
Up to ₹12,75,000
Just above the rebate limit, tax can never exceed the income past ₹12,00,000 — so a small raise never causes a tax jump.
Surcharge on income tax · new regime
| ₹50,00,001 – ₹1,00,00,000 | 10% |
| ₹1,00,00,001 – ₹2,00,00,000 | 15% |
| ₹2,00,00,001 – ₹5,00,00,000 | 25% |
| Above ₹5,00,00,000 | 25% |
A 4% health and education cess applies on top of tax plus surcharge. The old regime keeps a 37% top surcharge tier; the new regime caps it at 25%.
Which regime should you pick?
There is no single answer — it depends on your salary structure and how much you claim in deductions. As a pattern, the new regime wins for most salaried people who don't have large 80C, HRA or home-loan claims, especially below roughly ₹15,00,000 where the rebate does the heavy lifting. The old regime starts competing once your total deductions cross a couple of lakh, which usually means rent receipts, a running home loan, and maxed-out 80C and NPS.
Rather than guessing, run your own numbers — the calculator checks both regimes on every keystroke and tells you which one pays you more.
Compare both regimes on your CTCCurious how these slabs got here? Read the history of Indian income tax slabs, 2014 to today.