PaisaOrbit Last updated: September 2026. Budget 2026 made no changes to income tax slabs — the structure introduced in Budget 2025 continues to apply for FY 2026-27 (AY 2027-28).
FY 2026-27 (AY 2027-28) — New Tax Regime (default regime)
| Income slab | 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 (salaried/pensioners). Section 87A rebate of up to ₹60,000 brings tax to nil for taxable income up to ₹12,00,000 — combined with the standard deduction, a salaried individual pays zero tax up to roughly ₹12,75,000 gross salary. Plus 4% health & education cess on the tax computed.
FY 2026-27 — Old Tax Regime (opt-in)
| Income slab | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard deduction: ₹50,000. Section 87A rebate up to ₹12,500 brings tax to nil for taxable income up to ₹5,00,000. Deductions like 80C (up to ₹1,50,000), 80D, and home loan interest remain available only under this regime. Plus 4% cess.
How the new regime has changed by year
| Financial year | Zero-tax slab | Top rate threshold | Standard deduction |
|---|---|---|---|
| FY 2023-24 | Up to ₹3,00,000 | Above ₹15,00,000 (30%) | ₹50,000 |
| FY 2024-25 | Up to ₹3,00,000 | Above ₹15,00,000 (30%) | ₹75,000 |
| FY 2025-26 | Up to ₹4,00,000 | Above ₹24,00,000 (30%) | ₹75,000 |
| FY 2026-27 | Up to ₹4,00,000 | Above ₹24,00,000 (30%) | ₹75,000 |
The old regime's slabs have stayed unchanged across all four years shown above — only the new regime has moved, in Budget 2025, then held steady in Budget 2026.
Try it on your numbers
Use the Income Tax Calculator to compare old vs. new regime tax on your actual income.