Income tax slabs for FY 2026-27 (AY 2027-28)
New tax regime (default)
| 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% |
- Standard deduction: ₹75,000 for salaried and pensioners.
- Rebate (section 87A): taxable income up to ₹12 lakh pays zero tax — so a salary up to ₹12.75 lakh is tax-free. Marginal relief applies just above this limit.
- Cess: 4% health & education cess on the tax.
Old tax regime
| Taxable income | Below 60 | 60–79 | 80+ |
|---|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil | Nil |
| ₹2.5 – 3 lakh | 5% | Nil | Nil |
| ₹3 – 5 lakh | 5% | 5% | Nil |
| ₹5 – 10 lakh | 20% | 20% | 20% |
| Above ₹10 lakh | 30% | 30% | 30% |
The old regime allows deductions — 80C (₹1.5 lakh), 80D health insurance, HRA, home-loan interest, standard deduction of ₹50,000 and more — and a section 87A rebate when taxable income is up to ₹5 lakh.
New vs old regime — which should I choose?
Enter your deductions above and the tool picks the cheaper regime. As a rule of thumb, the new regime wins unless your old-regime deductions (80C + HRA + home-loan interest + 80D + NPS) are very large — typically above ₹3.75–4 lakh for a ₹15–20 lakh salary. Salaried employees can switch regimes every year when filing.
Example
Salary ₹15,00,000, no other income. New regime: taxable ₹14,25,000 → tax ₹93,750 + 4% cess = ₹97,500. Old regime with ₹2 lakh deductions and ₹50,000 standard deduction: taxable ₹12,50,000 → tax ₹1,87,500 + cess = ₹1,95,000. New regime saves ₹97,500.
Related: HRA exemption, in-hand salary, gratuity.