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Income tax slabs for FY 2026-27

For Tax Year 2026-27, income earned from 1 April 2026 to 31 March 2027, the new regime taxes income above ₹4 lakh at 5% to 30%. With the rebate, a resident pays no tax on taxable income up to ₹12 lakh, which is ₹12.75 lakh of salary. These rates are for income taxed at the slab rates, not special rates such as those on capital gains.

What Tax Year 2026-27 means

The Income-tax Act, 2025 came into force on 1 April 2026 and replaced the Income-tax Act, 1961.

Its “tax year” is the financial year (FY 2026-27): here 1 April 2026 to 31 March 2027 (s.3(1)). It replaces the old “previous year” and “assessment year”.

So these are the rates for income you earn in that period.

New regime (the default)

s.202(1), the same at every age

Taxable income Rate Tax to the top
Up to ₹4 lakh 0% ₹0
₹4–8 lakh 5% ₹20,000
₹8–12 lakh 10% ₹60,000
₹12–16 lakh 15% ₹1,20,000
₹16–20 lakh 20% ₹2,00,000
₹20–24 lakh 25% ₹3,00,000
Above ₹24 lakh 30% —

“Tax to the top”: the tax on income up to the end of that slab, before the rebate, surcharge and cess.

Standard deduction on salary: ₹75,000 (s.19).

Rebate (s.156): the whole tax, up to ₹60,000, for a resident whose taxable income is at most ₹12,00,000. Just above that, marginal relief keeps the tax, before cess, no higher than the income above ₹12,00,000.

Deductions such as s.123 payments, health insurance, interest on a loan for a self-occupied house and HRA exemption are not allowed in this regime (s.202(2)).

Old regime (if you opt out)

Finance Act, 2026, by age at any time during the tax year

Taxable income Below 60 60 to 79 80 +
Up to ₹2.5 lakh 0% 0% 0%
₹2.5–3 lakh 5% 0% 0%
₹3–5 lakh 5% 5% 0%
₹5–10 lakh 20% 20% 20%
Above ₹10 lakh 30% 30% 30%

The 60 to 79 and 80 + slabs are for residents. Non-residents of any age use the below-60 slabs.

Standard deduction on salary: ₹50,000.

Rebate (s.156): up to ₹12,500 for a resident whose taxable income is at most ₹5,00,000, with no marginal relief above it.

Deductions and exemptions count: s.123 payments up to ₹1,50,000, your own NPS up to ₹50,000, health insurance, home-loan interest up to ₹2,00,000, HRA exemption and others. See when the old regime costs less.

Surcharge and cess

Surcharge, as a share of the tax

Taxable income above New Old
₹50 lakh 10% 10%
₹1 crore 15% 15%
₹2 crore 25% 25%
₹5 crore 25% 37%

Marginal relief at each step: just above a threshold, the extra tax and surcharge can’t be more than the income above it. Special rates on dividends and capital gains are not covered here.

Cess: 4% of the tax and surcharge, in both regimes (Finance Act, 2026 s.3(15)).

Taxable income and the tax payable are rounded to the nearest ₹10 (s.516).

Questions and sources

Did Budget 2026 change the new regime’s slabs?

No. The Finance Act, 2026 made no change to the new regime’s slabs, its standard deduction or its rebate. The old regime’s slabs are set each year in the Finance Act; the ones above are from the Finance Act, 2026.

Which regime applies if I don’t choose?

The new regime (s.202) is the default. To be taxed under the old regime you opt out of it under s.202(4).

What changed (latest: 1 April 2026)

The rules this page uses, by the date each took effect, newest first. Each was last checked against its official source on 29 September 2026.

  1. 17 changes
    • New-regime slab rates on taxable income
    • Old-regime slab rates: individuals below 60, and non-residents of any age
    • Old-regime slab rates: resident individuals aged 60 to 79
    • Old-regime slab rates: resident individuals aged 80 or more
    • Standard deduction on salary
    • Rebate, new regime
    • Rebate, old regime
    • Surcharge rates
    • Health and education cess
    • Rounding of total income and of tax payable/refund
    • Deduction for life insurance premia, provident fund and the other Schedule XV payments (s.123, formerly 80C)
    • Deduction for the individual's own NPS contribution (s.124(3), formerly 80CCD(1B))
    • Deduction for health insurance premia (s.126, formerly 80D)
    • Deduction for interest on bank, co-operative bank and post office deposits (s.153, formerly 80TTA and 80TTB)
    • Interest on a home loan for a self-occupied house (s.22(1)(b)–(c), capped by s.22(2); formerly s.24(b))
    • Employer NPS contribution deduction (s.124, formerly 80CCD(2))
    • Income-tax Act 2025 in force; "Tax Year" replaces previous year / assessment year

Mistakes we have fixed on any page are listed on Corrections.

From the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Finance Act, 2026. Rules checked 29 September 2026.

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