Income Tax Slabs for AY 2026-27 (Old vs New Regime)
These are the slab rates for Assessment Year 2026-27 (income earned in FY 2025-26). The New regime is the default; you can opt for the Old regime if it works out cheaper for you.
New regime slabs (AY 2026-27)
| Total income | 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% |
With the enhanced Section 87A rebate, a resident with taxable income up to ₹12,00,000 pays no tax under the New regime. Add the ₹75,000 salary standard deduction, and a salaried person earning up to roughly ₹12.75 lakh can land at zero.
Old regime slabs (AY 2026-27)
| Total income | 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% |
Under the Old regime, the 87A rebate makes tax nil up to ₹5,00,000 of taxable income. Senior citizens get a higher basic exemption (₹3,00,000 for ages 60–80 and ₹5,00,000 for 80+) — this applies under the Old regime.
Section 87A rebate, in one line
The 87A rebate is a relief that cancels your tax if your taxable income is at or below the threshold — ₹12 lakh under the New regime, ₹5 lakh under the Old. Just above the threshold, marginal relief may apply.
Surcharge & cess sit on top
For higher incomes, a surcharge applies above ₹50 lakh (ranging across slabs) — note that the New regime caps the top surcharge at 25%. A 4% health-and-education cess is added to tax plus surcharge in both regimes.
See your tax under both regimes
MyTaxLocker applies these slabs, the 87A rebate, surcharge and cess to your Form 16 figures, and shows Old vs New side by side.
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