Income Tax Slabs FY 2026-27, Both Regimes

This page has the whole picture for the year: both regimes, the four adjustments that change the bill after the slabs, the 12.75 lakh line and why it sits where it does, and what the same salary paid in earlier years. Every figure is read from the same rule files the calculator uses.

The year is FY 2026-27. From this year the Income-tax Act, 2025 applies and calls the year a tax year. The slab rates, the rebate and the cess carried over from the year before.

The New Regime Slabs

Seven slabs, from nil to 30%. The new regime is the default, so unless you have told your employer otherwise, this is the table that applies to you.

Read the table as a staircase. Each slab taxes only the income that falls inside it. Someone with a taxable income just over the ₹4,00,000 mark does not pay 5% on all of it, only on the part above the mark. The last column shows what the bill would be if your income reached the top of that slab, which is handy for checking your own sum.

Taxable income is not your salary. It is your gross salary for the year less the standard deduction. The next section shows the other things that adjust the bill.

What Changes The Bill After The Slabs

Four things sit around the slabs: the standard deduction before them, and the rebate, surcharge and cess after them.

In plain words:

• Standard deduction. A flat amount every salaried person and pensioner takes off the salary without producing any proof. It is ₹75,000 in the new regime.
• Rebate. If taxable income is ₹12,00,000 or less, the tax from the slabs is cancelled, up to ₹60,000. This is what turns a low slab bill into zero.
• Cess. 4% health and education cess goes on top of whatever tax is left. If your tax is nil, so is the cess.
• Surcharge. An extra percentage on the tax of people with very high incomes: 10% above ₹50,00,000, and more at higher levels, as the table shows. Tax plus surcharge is never allowed to take more than the extra income above a threshold.

The 12.75 Lakh Tax-Free Salary, Explained

A gross salary of up to ₹12,75,000 a year pays no income tax in the new regime. The two numbers behind it are the standard deduction and the rebate.

The slabs alone would charge tax on income above the ₹4,00,000 mark. They add up to exactly ₹60,000 on a taxable income of ₹12,00,000, and the rebate is exactly that large. So up to that point the rebate cancels the whole bill.

The salary that gets you there is ₹12,00,000 plus the ₹75,000 standard deduction, which is ₹12,75,000. That is why the figure has such an odd look. It is not a round number in the law. It is two round numbers added together.

Marginal Relief: The Few Rupees Above The Line

Just above the line the tax does not jump to its full slab amount. Marginal relief caps it at the income you earned above the line.

Without relief, a salary one rupee over the line would owe the full slab tax of about ₹60,000, and one rupee of extra pay would cost thousands. Relief prevents that. The tax is held to the income above the line, plus cess, so the extra pay is taxed away almost rupee for rupee until the slab tax catches up.

That happens at a gross salary of about ₹13,45,600. Above it the full slab tax applies. In the stretch between the line and that figure, almost all of a raise is taxed away. The last column shows tax taking slightly more than the extra pay at first, because the cess is added on top. That is useful to know before a negotiation: a raise that ends in this zone is worth far less than it looks.

Old Regime Slabs By Age

The old regime has lower nil-tax limits, a smaller standard deduction and slabs that change with age. In return you can claim deductions.

For someone under 60, income up to ₹2,50,000 is nil, and the 30% rate starts above ₹10,00,000. The standard deduction is ₹50,000, and the rebate cancels tax of up to ₹12,500 when taxable income is ₹5,00,000 or less. Marginal relief does not apply in the old regime.

What the old regime offers is deductions: HRA, 80C, home-loan interest, health insurance and others. They only help if you declare them to your employer, or claim them when you file. Here is what that is worth on a 15 LPA salary:

The new regime still charges less, even with deductions of this size. The old regime needs deductions of about ₹5,27,398 in a year to catch up. That is why most salaried people at this level do better in the new regime, and why it is the default.

What The Same Salary Paid In Earlier Years

The slabs changed in FY 2025-26. Here is the same salary taxed in each year this site covers.

And what changed from the year before:

• The new-regime slabs are the same as in FY 2025-26.
• The rebate is the same: up to ₹60,000 when taxable income is ₹12,00,000 or less.
• The standard deduction in the new regime is the same, ₹75,000.
• The old-regime slabs are unchanged.

For the earlier years in full, see the pages for FY 2025-26 and FY 2024-25.

From Slabs To Your Take-Home

The slabs set your income tax. Your take-home is the CTC minus employer PF and gratuity, divided by 12, minus PF, professional tax and a twelfth of this tax.

Tax is one of four deductions. The calculator below applies all of them to your own CTC, in the regime that charges you less, and shows the monthly figure.