What is the income tax slab for FY 2026-27 under the new regime?

Under the new regime (to be confirmed against the Finance Act 2026): nil up to Rs.4 lakh, 5% from 4-8 lakh, 10% from 8-12 lakh, 15% from 12-16 lakh, 20% from 16-20 lakh, 25% from 20-24 lakh and 30% above Rs.24 lakh, with a Section 87A rebate making income up to Rs.12 lakh tax-free for residents.

Which regime is better, old or new?

The new regime suits taxpayers with few deductions, while the old regime can be better for those claiming large 80C, home-loan interest, HRA and similar deductions. Compare both using this calculator for your figures.

Income Tax Calculator FY 2026-27 (Old vs New Regime)

How the tax is computed

Taxable income = income − standard deduction − eligible deductions. Slab tax is then computed, the Section 87A rebate is applied, surcharge is added for higher incomes, and a 4% health & education cess is levied on tax plus surcharge.

New regime slabs FY 2026-27 (Section 115BAC): Nil up to 4L · 5% 4-8L · 10% 8-12L · 15% 12-16L · 20% 16-20L · 25% 20-24L · 30% above 24L. 87A rebate (Rs.60,000 under new regime) makes income up to Rs.12L tax-free for residents, with marginal relief above. Confirmed per Finance Act 2026 — no change. ✓

Caution. Surcharge is applied here without marginal relief at the threshold; capital gains taxed at special rates (111A/112A) are not separated. Use for estimation; confirm precise liability with your CA. ✓ Slabs verified June 2026.

Frequently asked questions

Is the standard deduction available in the new regime?

Yes — salaried individuals and pensioners get a standard deduction of Rs.75,000 under the new regime for FY 2025-26 onward (confirm for FY 2026-27).

What is the surcharge cap under the new regime?

The maximum surcharge under the new regime is 25% (the 37% rate of the old regime does not apply), reducing the effective top rate.

Does the new regime allow 80C?

No. Deductions such as 80C, 80D, HRA and home-loan interest on a self-occupied property are generally not available under the new regime; the employer NPS contribution under 80CCD(2) is an exception.

Key takeaways

New regime: income up to Rs.12L tax-free for residents (87A).
Standard deduction Rs.75,000 (new) / Rs.50,000 (old) for salaried.
Surcharge capped at 25% under the new regime.
4% health & education cess on tax + surcharge.

Related tools: Advance Tax Calculator · Income Tax Slab Chart

This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.