New regime tax slabs for FY 2026-27
Budget 2026 left both regimes unchanged, so FY 2026-27 uses the same slabs as FY 2025-26. The new regime is the default and its rates sit in section 202 of the Income-tax Act, 2025.
| Taxable income | New regime |
|---|---|
| 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% |
A rebate of up to ₹60,000 makes taxable income up to ₹12 lakh tax-free. Add the ₹75,000 standard deduction and a salary of ₹12.75 lakh pays zero tax. Health and education cess of 4% applies on top of the tax.
Old regime tax slabs
| Taxable income | Below 60 | 60 – 79 | 80+ |
|---|---|---|---|
| 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, so taxable income up to ₹5 lakh is tax-free. In exchange for higher rates you can claim HRA, home loan interest, 80C, 80D, 80CCD(1B) and other deductions.
Worked examples
Salaried taxpayer below 60, claiming ₹1.5 lakh under 80C and ₹25,000 under 80D in the old regime. Tax includes 4% cess.
| Salary | New regime | Old regime | Extra deduction for old to win |
|---|---|---|---|
| ₹8,00,000 | ₹0 | ₹28,600 | ₹76,000 |
| ₹10,00,000 | ₹0 | ₹70,200 | ₹2,76,000 |
| ₹12,75,000 | ₹0 | ₹1,32,600 | ₹5,50,000 |
| ₹15,00,000 | ₹97,500 | ₹2,02,800 | ₹3,69,000 |
| ₹20,00,000 | ₹1,92,400 | ₹3,58,800 | ₹5,34,000 |
| ₹25,00,000 | ₹3,19,800 | ₹5,14,800 | ₹6,25,000 |
How this calculator works
- Gross income = salary + other income.
- Deductions are applied per regime. The new regime allows only the ₹75,000 standard deduction and employer NPS (up to 14% of basic + DA). The old regime adds HRA, professional tax, home loan interest (up to ₹2 lakh) and Chapter VI-A deductions, each capped at its legal limit.
- Taxable income is rounded down to the nearest ₹10 and taxed slab by slab.
- The rebate and marginal relief are applied, then surcharge (with marginal relief) for income above ₹50 lakh, then 4% cess.
- HRA exemption is the lowest of: HRA received, rent paid minus 10% of basic + DA, or 50% (metro) / 40% (non-metro) of basic + DA.
Frequently asked questions
Which tax regime is better for FY 2026-27?
For most salaried taxpayers the new regime is cheaper. Salary up to ₹12.75 lakh is tax-free under it. The old regime only wins when you claim large deductions such as HRA, home loan interest, 80C and 80D together.
Did tax slabs change for FY 2026-27?
No. Budget 2026 kept both regimes unchanged. FY 2026-27 is the first tax year under the Income-tax Act, 2025, which replaced the Income-tax Act, 1961 from 1 April 2026.
How much deduction do I need for the old regime to be better?
It depends on your income. On a ₹15 lakh salary with ₹1.75 lakh of 80C and 80D, you need about ₹3.69 lakh more (HRA or home loan interest, for example) before the old regime matches the new one. The calculator shows your exact break-even.
Can salaried employees switch regimes every year?
Yes. Individuals without business or professional income can choose a regime each year when filing their return. The new regime applies by default. Taxpayers with business income have limited options to switch back.
What is marginal relief under the new regime?
If taxable income is slightly above ₹12 lakh, the tax cannot exceed the income earned above ₹12 lakh. At ₹12.25 lakh, tax is limited to ₹25,000 plus cess instead of ₹63,750.