Income tax slabs for FY 2026-27
| New regime (default) | Rate | Old regime (below 60) | Rate |
|---|---|---|---|
| Up to ₹4 L | Nil | Up to ₹2.5 L | Nil |
| ₹4–8 L | 5% | ₹2.5–5 L | 5% |
| ₹8–12 L | 10% | ₹5–10 L | 20% |
| ₹12–16 L | 15% | Above ₹10 L | 30% |
| ₹16–20 L | 20% | ||
| ₹20–24 L | 25% | ||
| Above ₹24 L | 30% |
Old-regime basic exemption is ₹3 lakh for senior citizens (60–79) and ₹5 lakh for super seniors (80+). FY 2026-27 is the first year under the Income-tax Act 2025, which replaces the 1961 Act; the rates stay the same as last year.
Zero tax up to ₹12.75 lakh salary
Under the new regime, section 87A rebate (up to ₹60,000) makes tax nil when taxable income is ₹12 lakh or less. Salaried people also get a ₹75,000 standard deduction, so a salary of ₹12.75 lakh pays no tax. Just above ₹12 lakh, marginal relief caps your tax at the amount by which income exceeds ₹12 lakh.
When does the old regime still win?
Only if you have large deductions — typically HRA plus full 80C, 80D and home-loan interest. The calculator shows the exact break-even amount of deductions for your salary.
FAQ
Is income up to ₹12 lakh tax-free in FY 2026-27?
Yes, under the new regime. Taxable income up to ₹12 lakh gets a full 87A rebate, and salaried taxpayers also deduct ₹75,000, so a salary up to ₹12.75 lakh pays no tax. Special-rate income like capital gains is taxed separately.
Which tax regime is better for a ₹15 lakh salary?
The new regime is better for most people at ₹15 lakh unless their old-regime deductions exceed roughly ₹5–6 lakh. Enter your figures above for the exact answer.
What is the standard deduction for FY 2026-27?
₹75,000 under the new regime and ₹50,000 under the old regime for salaried employees and pensioners.