Tax regimes, slabs and rates · Tax Year 2026-27
Income tax slabs for the tax year 2026-27 (new regime)
The new regime slabs run from nil up to ₹4 lakh to 30% above ₹24 lakh, with a rebate that makes income up to ₹12 lakh tax free. See the slab table, the rebate, the standard deduction, surcharge and cess, plus tax at common salaries.
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For the tax year 2026-27, the new regime has seven slabs: nothing on income up to ₹4,00,000, then 5%, 10%, 15%, 20%, 25% and 30% above ₹24,00,000. A rebate makes total income up to ₹12,00,000 tax free, and salaried people also get a ₹75,000 standard deduction. Health and education cess of 4% is added to the tax.
These figures are provisional. The tax year 2026-27 is the first under the Income-tax Act, 2025. TaxCare's rule set for it repeats every figure of the tax year 2025-26 and has not been signed off against the new Act or the Finance Act 2026. Treat the numbers below as an estimate and check them when the final rules are published.
New regime slabs
Total income | Rate |
|---|---|
Up to ₹4,00,000 | Nil |
₹4,00,001 to ₹8,00,000 | 5% |
₹8,00,001 to ₹12,00,000 | 10% |
₹12,00,001 to ₹16,00,000 | 15% |
₹16,00,001 to ₹20,00,000 | 20% |
₹20,00,001 to ₹24,00,000 | 25% |
Above ₹24,00,000 | 30% |
Each rate applies only to the part of income inside that slab. The new regime slabs are the same for every age.
Old regime slabs
Total income | Rate |
|---|---|
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% |
In the old regime the nil slab is ₹3,00,000 for a senior citizen (60 to 79) and ₹5,00,000 for a super senior citizen (80 and above).
Rebate, standard deduction and surcharge
Feature | New regime | Old regime |
|---|---|---|
Rebate | Up to ₹60,000 if total income is ₹12,00,000 or less, with marginal relief above | Up to ₹12,500 if total income is ₹5,00,000 or less |
Standard deduction (salary, pension) | ₹75,000 | ₹50,000 |
Surcharge | 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore | The same, plus 37% above ₹5 crore |
Cess | 4% of tax plus surcharge | 4% of tax plus surcharge |
The new regime rebate applies to tax on normal slab income. It does not cover tax at special rates, such as capital gains on shares. Capital gains are taxed separately, for example 12.5% on long-term gains on listed shares above ₹1,25,000 and 20% on short-term gains on listed shares.
This guide refers to these provisions by name (the rebate, the standard deduction, the special rates) rather than by section number.
Tax at common salaries (new regime)
These figures come from TaxCare's calculator engine for a salaried person under 60 with no other income and no deduction other than the standard deduction. They include 4% cess.
Annual salary | Taxable income after ₹75,000 | Tax |
|---|---|---|
₹8,00,000 | ₹7,25,000 | Nil |
₹12,00,000 | ₹11,25,000 | Nil |
₹15,00,000 | ₹14,25,000 | ₹97,500 |
₹20,00,000 | ₹19,25,000 | ₹1,92,400 |
₹25,00,000 | ₹24,25,000 | ₹3,19,800 |
₹30,00,000 | ₹29,25,000 | ₹4,75,800 |
Because the standard deduction is ₹75,000, a salary of up to ₹12,75,000 brings taxable income within the ₹12,00,000 rebate limit. Just above that, marginal relief limits the tax to the amount by which income exceeds the limit. For example, on a salary of ₹12,90,000, taxable income is ₹12,15,000 and the tax on slabs is ₹62,250. Marginal relief reduces it to ₹15,000, which is the ₹15,000 by which income exceeds ₹12,00,000, and with 4% cess the tax is ₹15,600.
How the slab arithmetic works
Take taxable income of ₹14,25,000 in the new regime:
- First ₹4,00,000: nil.
- Next ₹4,00,000 at 5%: ₹20,000.
- Next ₹4,00,000 at 10%: ₹40,000.
- Remaining ₹2,25,000 at 15%: ₹33,750.
- Slab tax: ₹93,750. Add 4% cess (₹3,750): ₹97,500.
It matches the table. The rebate does not apply because income is above ₹12,00,000 and marginal relief is exhausted.
What the new regime does not allow
Most Chapter VI-A deductions, such as 80C and 80D, and the set-off of a house property loss against other income are not allowed in the new regime. The deductions that stay are the standard deduction, the family pension deduction and the employer's contribution to your NPS account.
Read the comparison with examples in old vs new tax regime and worked examples by salary.
How TaxCare helps
TaxCare's income tax calculator works out your tax under both regimes. When you file with TaxCare, the same engine compares the regimes from your own data fetched from the portal, so you see the difference before you choose. The tax year 2026-27 rules are labelled provisional until they are signed off.
This guide gives general information and is not professional tax advice.
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