These are the income tax slab rates for FY 2026-27, which is assessment year 2027-28, in India, for both the new and the old regime. The new regime is the default, and most people now use it because income up to 12 lakh rupees is effectively tax-free. Below are the full slabs, the rebate, the standard deduction, and the surcharge and cess, in plain English.
New regime income tax slabs FY 2026-27
The new regime has no exemptions to claim, just these slabs and a standard deduction for salaried people. It is the default unless you choose the old regime.
| Taxable income | Tax rate |
|---|---|
| Up to Rs 4,00,000 | Nil |
| Rs 4,00,001 to Rs 8,00,000 | 5% |
| Rs 8,00,001 to Rs 12,00,000 | 10% |
| Rs 12,00,001 to Rs 16,00,000 | 15% |
| Rs 16,00,001 to Rs 20,00,000 | 20% |
| Rs 20,00,001 to Rs 24,00,000 | 25% |
| Above Rs 24,00,000 | 30% |
Two things make the new regime generous. First, a standard deduction of 75,000 rupees for salaried people and pensioners. Second, the section 87A rebate, which wipes out the tax entirely when your taxable income is up to 12 lakh rupees, so a salaried person can earn about 12.75 lakh rupees and still pay no income tax. Just above 12 lakh, marginal relief makes sure your tax never exceeds the income over 12 lakh.
Old regime income tax slabs FY 2026-27
The old regime keeps the familiar slabs and lets you claim deductions such as 80C, 80D, HRA and home loan interest. The basic exemption is 2,50,000 rupees for people below 60, 3,00,000 rupees for senior citizens aged 60 to 80, and 5,00,000 rupees for super senior citizens above 80.
| Taxable income | Tax rate |
|---|---|
| Up to Rs 2,50,000 | Nil |
| Rs 2,50,001 to Rs 5,00,000 | 5% |
| Rs 5,00,001 to Rs 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
Under the old regime the standard deduction is 50,000 rupees and the section 87A rebate applies when your taxable income is up to 5,00,000 rupees, giving a rebate of up to 12,500 rupees.
Surcharge and cess
On top of the slab tax, a health and education cess of 4 percent applies in both regimes. A surcharge also applies at higher incomes: 10 percent above 50 lakh, 15 percent above 1 crore, and 25 percent above 2 crore. The old regime adds a 37 percent band above 5 crore, while the new regime caps the surcharge at 25 percent.
Old regime vs new regime: which to pick
There is no single answer, it depends on how many deductions you claim. As a rule of thumb, the new regime wins for most people who do not claim large deductions, while the old regime can still win if you have a big home loan, high HRA or a full 80C. The cleanest way to decide is to run your own numbers in our old vs new regime calculator, then see your monthly pay in the take-home salary calculator. If you pay tax in instalments, the advance tax estimator works out the due dates.
These figures follow the official position for FY 2026-27 and were not changed by the February 2026 budget. Under the new Income-tax Act 2025, which takes effect on 1 April 2026, assessment year 2027-28 is also called Tax Year 2026-27, but the numbers are the same. Always confirm against the official portal at incometax.gov.in.
Frequently Asked Questions
What are the new regime income tax slabs for FY 2026-27?
Nil up to 4 lakh, 5 percent from 4 to 8 lakh, 10 percent from 8 to 12 lakh, 15 percent from 12 to 16 lakh, 20 percent from 16 to 20 lakh, 25 percent from 20 to 24 lakh, and 30 percent above 24 lakh.
Is income up to 12 lakh tax-free in FY 2026-27?
Yes, under the new regime the section 87A rebate makes a taxable income up to 12 lakh rupees effectively tax-free. With the 75,000 rupee standard deduction, a salaried person can earn about 12.75 lakh and still pay no income tax.
What are the old regime slabs for FY 2026-27?
Nil up to the basic exemption of 2.5 lakh (3 lakh for ages 60 to 80, 5 lakh above 80), then 5 percent up to 5 lakh, 20 percent from 5 to 10 lakh, and 30 percent above 10 lakh.
What is the standard deduction for FY 2026-27?
It is 75,000 rupees under the new regime and 50,000 rupees under the old regime, for salaried people and pensioners.