Check the latest India income tax slab rates for FY 2026-27 with new tax regime, old tax regime, salaried standard deduction, rebate, surcharge, cess, examples and a simple tax calculator for quick planning.
For FY 2026-27, the slab structure continues to be centred around two systems: the default new regime with wider slabs and lower rates, and the old regime for taxpayers who want to claim deductions and exemptions such as Section 80C, HRA, home loan interest and other eligible benefits.
Income up to ₹4 lakh is taxed at nil rate under the new regime slab table.
Eligible individual taxpayers can get rebate benefit up to the specified limit under the new regime, subject to conditions.
Available to salaried taxpayers and pensioners under the new regime. Old regime standard deduction remains lower.
Cess is charged on income tax plus surcharge, wherever applicable.
Use this simple calculator to estimate income tax under the new or old regime. It is designed for quick planning and salary TDS estimation. Exact tax can change with special rate income, capital gains, employer benefits, loss set-off, surcharge, marginal relief and deductions allowed under your specific case.
| Tax before rebate | - |
| Rebate / marginal relief | - |
| Cess | - |
| Total tax | - |
The new tax regime is the default tax regime. It is usually simpler because the slab rates are lower and most traditional deductions are not available. Salaried taxpayers still get the standard deduction, and certain limited deductions such as employer contribution to NPS may continue to be relevant depending on the rule applicable to the taxpayer.
| Taxable Income Slab | Income Tax Rate | How It Works |
|---|---|---|
| Up to ₹4,00,000 | Nil | No tax on income within this slab. |
| ₹4,00,001 to ₹8,00,000 | 5% | 5% on income above ₹4 lakh. |
| ₹8,00,001 to ₹12,00,000 | 10% | ₹20,000 plus 10% on income above ₹8 lakh. |
| ₹12,00,001 to ₹16,00,000 | 15% | ₹60,000 plus 15% on income above ₹12 lakh. |
| ₹16,00,001 to ₹20,00,000 | 20% | ₹1,20,000 plus 20% on income above ₹16 lakh. |
| ₹20,00,001 to ₹24,00,000 | 25% | ₹2,00,000 plus 25% on income above ₹20 lakh. |
| Above ₹24,00,000 | 30% | ₹3,00,000 plus 30% on income above ₹24 lakh. |
The old tax regime is optional and can still be better for taxpayers who have enough deductions and exemptions. It keeps older slab rates, but allows tax planning through Section 80C, HRA exemption, medical insurance under Section 80D, home loan interest and other eligible deductions.
| Age Category | Taxable Income Slab | Income Tax Rate |
|---|---|---|
| Below 60 years | Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% | |
| ₹5,00,001 to ₹10,00,000 | 20% | |
| Above ₹10,00,000 | 30% | |
| Senior citizen: 60 to below 80 | Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹5,00,000 | 5% | |
| ₹5,00,001 to ₹10,00,000 | 20% | |
| Above ₹10,00,000 | 30% | |
| Super senior citizen: 80+ | Up to ₹5,00,000 | Nil |
| ₹5,00,001 to ₹10,00,000 | 20% | |
| Above ₹10,00,000 | 30% |
Income tax content often creates confusion because people search for “FY 2026-27 income tax slabs,” “AY 2027-28 tax slabs,” and “tax year 2026-27 slabs” as if all three mean exactly the same thing. In practical salary planning, FY 2026-27 means the financial year that starts on 1 April 2026 and ends on 31 March 2027. Income earned during this period is normally filed in the next assessment cycle. Many users, however, search by financial year because their employer TDS, salary revision, CTC negotiation and investment declaration are all linked to the financial year.
For an SEO page, it is useful to mention both terms naturally. A person comparing salary in April 2026 may search for FY 2026-27, while a person filing the return later may search for AY 2027-28. The core slab table used for salary tax calculation remains the important part. That is why this guide explains the slabs with financial year wording, while also reminding users that filing and assessment year wording may differ.
The new tax regime is designed to be straightforward. It gives a larger nil slab, smaller jumps between tax rates and a wide middle-income relief through rebate. The trade-off is that many popular deductions of the old regime are not generally available. For people who do not claim HRA, do not invest heavily under Section 80C, do not have home loan interest and do not want to track multiple proofs, the new regime can be easier.
The slab calculation is progressive. This means the full income is not taxed at the highest rate. Only the portion of income falling in a specific slab is taxed at that slab rate. For example, if your taxable income is ₹15 lakh under the new regime, the first ₹4 lakh is nil, the next ₹4 lakh is taxed at 5%, the next ₹4 lakh is taxed at 10%, and only the income above ₹12 lakh is taxed at 15% until the next slab begins. This progressive structure is the reason your effective tax rate is lower than your highest marginal rate.
Salaried taxpayers should also understand the standard deduction. Under the new regime, a salaried employee can reduce salary income by the applicable standard deduction before applying the slab. This is why a gross salary figure and a taxable income figure may not be the same. A person with ₹12.75 lakh gross salary may still need to calculate taxable salary after standard deduction, not only by looking at gross CTC. However, salary CTC can include employer PF, gratuity, bonus, reimbursements and other benefits, so the taxable salary shown in Form 16 can be different from the headline package.
The old tax regime keeps the familiar slab structure but allows many deductions and exemptions. The most common deductions include Section 80C for EPF, PPF, ELSS, life insurance premium, principal repayment of housing loan and tuition fees; Section 80D for medical insurance; HRA exemption for eligible rent payers; interest on housing loan for a self-occupied property within the applicable limit; and other deductions depending on the taxpayer’s profile.
The old regime can be better when your tax-saving deductions are meaningful. For example, a person in a metro city paying rent may get HRA exemption. A person with EPF and ELSS may use Section 80C. A person paying health insurance premium for self and parents may use Section 80D. These items can reduce taxable income enough to offset the higher old-regime rates. But if you do not have these deductions, the old regime often becomes less attractive than the new regime.
Another important point is employer TDS declaration. Salaried employees usually choose a regime at the start of the financial year or when submitting investment declarations. That choice helps the employer deduct TDS from monthly salary. In many cases, non-business taxpayers can still compare and choose while filing the return, subject to the applicable rules. Business income cases have stricter switching conditions, so they should be more careful before opting out of the default regime.
Rebate is not the same as a slab rate. Slabs calculate tax first; rebate reduces tax after it is calculated, subject to conditions. In the new regime, the rebate amount and threshold provide major relief for eligible taxpayers around the middle-income range. In the old regime, a smaller rebate continues for taxpayers whose taxable income does not exceed the old-regime threshold.
This distinction matters because many users ask, “If income above ₹4 lakh is taxable, how is income up to ₹12 lakh tax-free?” The answer is that the slab table calculates tax, but the rebate can reduce final tax to zero when income is within the specified rebate limit. Once income crosses the rebate condition, normal tax applies, with marginal relief where applicable. For precise cases near the threshold, use the official tax calculator or a qualified tax adviser because special income, surcharge and marginal relief can change the final answer.
Standard deduction is a flat deduction from salary or pension income. It does not require investment proof like Section 80C. Under the current framework, the new regime provides a higher standard deduction for salaried taxpayers than the normal old-regime standard deduction. This is one reason many salaried employees with simple income profiles find the new regime attractive.
For example, assume a salaried person has annual salary income of ₹12.75 lakh and no special rate income. If the applicable standard deduction reduces taxable salary to ₹12 lakh, the rebate mechanism can become highly relevant. But this does not mean every ₹12.75 lakh CTC is automatically tax-free. CTC is not the same as taxable salary. Employer PF, gratuity, reimbursements, exemptions, variable pay, bonus timing and Form 16 values all matter. Always compare on taxable income, not only on CTC.
For most salary earners below ₹50 lakh taxable income, surcharge is not relevant. However, high-income taxpayers should know that surcharge begins when income crosses the prescribed threshold. Surcharge is calculated on the income tax amount, not directly on total income. After income tax and surcharge, Health and Education Cess is added at 4%. This cess applies in both regimes.
Under the new regime, the highest surcharge rate is capped differently compared with the old regime for certain cases. High-income taxpayers, especially those with capital gains, dividend income or mixed income sources, should not rely only on a simple slab calculator. The surcharge interaction, marginal relief and special tax rates need careful review.
Under the new regime, income up to ₹4 lakh is nil. The next ₹4 lakh falls in the 5% slab, creating tax of ₹20,000 before rebate. If the taxpayer is eligible for the new-regime rebate and the taxable income is within the rebate threshold, the final tax can become nil before considering special cases. This is why a taxpayer at ₹8 lakh taxable income may not pay regular slab tax under the rebate rules.
At ₹12 lakh taxable income, slab tax before rebate is calculated across the 0%, 5% and 10% slabs. The tax before rebate reaches ₹60,000. If the taxpayer qualifies for the rebate up to ₹60,000 and the taxable income does not exceed the threshold, regular tax can reduce to zero. This example explains why the rebate is more powerful than simply reading the first slab.
At ₹15 lakh taxable income, rebate normally does not wipe out the tax because the income is above the rebate threshold. The slab tax is ₹60,000 up to ₹12 lakh plus 15% on ₹3 lakh, which is ₹45,000. Total tax before cess becomes ₹1,05,000. After 4% cess, the estimated total becomes ₹1,09,200. This is why many 15 LPA salary searches show tax around this range before considering salary standard deduction, employer benefits and other adjustments.
Suppose a taxpayer has ₹15 lakh gross salary but claims standard deduction, HRA exemption, Section 80C, Section 80D and home loan interest. If these deductions reduce taxable income sharply, the old regime can compete with or beat the new regime. The calculation depends on actual rent, basic salary, HRA received, investments and eligible interest. A generic slab table cannot decide the best regime without these inputs.
There is no single answer for every taxpayer. The new regime is often better when deductions are low, income structure is simple and the taxpayer wants easy compliance. The old regime is often better when deductions are high and properly documented. A salaried person with rent and tax-saving investments should compare both. A freelancer or consultant should consider business deductions and advance tax separately because salary-focused examples may not apply fully.
For many middle-income salaried users, the decision starts with three questions. First, how much is your taxable income after standard deduction? Second, how much deduction can you genuinely claim in the old regime? Third, is your income close to the rebate threshold? Once these three answers are clear, choosing a regime becomes much easier.
This guide is written to naturally cover the common queries users search on Google, including income tax slabs FY 2026-27, new tax regime slabs 2026-27, old tax regime slabs 2026-27, income tax calculator FY 2026-27, tax rebate under new regime, salary tax calculation India, FY 2026-27 tax rates, AY 2027-28 tax slabs, standard deduction 2026-27, Section 87A rebate, 12 lakh tax free income new regime, and new vs old tax regime comparison.
Search intent for this topic is usually practical. Users are not only looking for slab tables; they want to know how much tax they will pay, whether salary up to ₹12 lakh is tax-free, how the ₹75,000 standard deduction works, whether old regime deductions are still useful, and how much TDS an employer may deduct. This page therefore combines a table, calculator, examples and FAQ section instead of publishing only a short slab list.
CTC includes employer-side cost and benefits, while taxable income is calculated after salary structure, exemptions, deductions and standard deduction. Always calculate tax on taxable income, not only on offer letter CTC.
The default regime is the new regime. Taxpayers who want the old regime must opt for it as per applicable rules. Non-business taxpayers generally have more flexibility than business-income taxpayers.
Slabs calculate tax, but rebate reduces payable tax subject to the threshold and taxpayer eligibility. That is why reading only the first taxable slab can be misleading for middle-income taxpayers.
Health and Education Cess at 4% is added after calculating income tax and surcharge, if any. For ordinary salary incomes below surcharge level, cess is simply 4% of income tax after rebate.
Old regime deductions are useful only when you actually qualify and can maintain proof. HRA, 80C, 80D and home loan claims should match Form 16, rent receipts, PAN rules and investment documents.
Capital gains, lottery income, crypto income and some special rate income may not follow the simple salary slab pattern. Use a complete tax calculator when your income is not just salary.
For salaried employees, income tax slabs are not used only at the time of filing ITR. They are used throughout the year by employers to deduct TDS from monthly salary. At the beginning of the financial year, the employer asks the employee to declare the tax regime, expected deductions, rent details, previous employer salary, bonus estimate and any other income that should be considered for TDS. If the employee selects the new regime, payroll usually applies the new slabs, the relevant standard deduction and limited deductions available under that regime. If the employee selects the old regime, payroll may allow HRA, Section 80C, Section 80D and other proofs according to company policy and tax rules.
A common mistake is to ignore bonus, joining bonus, variable pay or arrears while estimating tax. If your annual bonus is paid in one month, TDS for that month can look unusually high because payroll tries to recover the full-year tax liability. Another mistake is not declaring previous employer income after switching jobs. If you changed companies during FY 2026-27 and both employers gave you basic exemption and rebate benefit separately, your final tax at ITR time may be higher than expected. Always submit previous employer salary and TDS details to the new employer as soon as possible.
Employees should also update their declarations when life changes happen during the year. Examples include moving to a rented house, taking a home loan, increasing EPF/VPF contributions, buying health insurance for parents, or receiving a large variable payout. A small update in payroll declarations can reduce a big tax mismatch at the end of the year. This page gives a practical estimate, but your Form 16 remains the key salary document for final tax filing.
The biggest difference between the regimes is not only the slab rate. The real difference is the treatment of deductions. In the old regime, taxpayers can claim several deductions if they meet conditions and maintain proof. Section 80C is the most common, covering employee PF, PPF, ELSS, life insurance premium, principal repayment of housing loan and certain tuition fees. Section 80D helps with medical insurance premium. HRA exemption helps employees who receive HRA and pay rent. Home loan interest can also reduce taxable income in eligible cases. These benefits can make the old regime attractive for disciplined savers and rent payers.
In the new regime, the approach is different. The slabs are wider and tax rates are lower, but most of the old deductions are not normally available. The salaried standard deduction, employer contribution to NPS under the permitted section, and a few specific deductions or allowances may still matter. Because the new regime is simpler, it is often preferred by employees who do not want to lock money in tax-saving products just to reduce tax. It is also useful for people who are early in their career, do not pay rent, or have limited eligible investments.
The right comparison method is simple: first calculate taxable income under the new regime, then calculate taxable income under the old regime after genuine deductions. Do not choose old regime only because you have investments; check whether those investments actually reduce tax enough. Do not choose new regime only because it is default; compare if your old-regime deductions are large. A proper comparison should include tax before rebate, rebate, cess and final payable tax.
The new regime usually suits taxpayers with low deductions, simple salary structure and taxable income near the rebate range. Freshers, early-career professionals, employees living with family, people without home loans, and taxpayers who do not invest heavily in 80C products often find the new regime easier. It can also suit employees who prefer liquidity instead of buying tax-saving products purely for deduction. If your priority is a simple salary tax calculation and lower paperwork, the new regime is often the first option to test.
Another group that may prefer the new regime is high-income taxpayers whose old-regime deductions are too small compared with their income. For example, if taxable salary is very high and the employee can claim only limited 80C and 80D deductions, the lower new-regime rates may still give a better final result. However, high-income taxpayers should check surcharge, capital gains and special income separately because simple salary calculators may not capture every rule.
The old regime deserves careful checking when the taxpayer pays significant rent and receives HRA, has full Section 80C deductions, pays medical insurance premium, has a home loan, donates to eligible institutions, or claims other permitted deductions. It can also be useful for families where tax planning is already built around PPF, ELSS, life insurance and housing loan repayments. In these cases, the old regime may reduce taxable income enough to beat the new regime even though old-regime slab rates look higher.
Rent payers should pay special attention to HRA calculation. HRA exemption is based on actual HRA received, rent paid minus a percentage of salary, and metro or non-metro classification. It is not simply the full rent paid. If rent is paid to parents or relatives, documentation should be clean and genuine. If annual rent crosses the PAN reporting threshold, landlord PAN may be required. These practical details decide whether the old-regime benefit will actually be accepted in payroll or ITR.
The first mistake is applying the highest slab rate to total income. India uses progressive taxation, so only the income within each slab is taxed at that slab rate. A person in the 30% slab does not pay 30% on the entire income. The second mistake is ignoring rebate. Rebate can reduce final tax even after slab tax is calculated. The third mistake is comparing gross CTC with taxable income. Salary CTC includes many components that may not be taxable in the same way.
The fourth mistake is assuming every deduction is available in every regime. Old regime and new regime have different rules. The fifth mistake is ignoring cess. Even when there is no surcharge, cess can increase final tax by 4% of tax after rebate. The sixth mistake is trusting a monthly TDS amount without checking the annual calculation. TDS can change after bonus, increment, proof rejection or job switch. Good tax planning means checking the full-year picture, not only one payslip.
These FAQs target the questions users commonly ask before salary declaration, job switching, tax planning and ITR filing for FY 2026-27.