Tax slabs for tax year 2026-27
Budget 2026 kept the slab rates of the previous year. The new regime is the default; you get the old regime only if you choose it.
| New regime: income | Rate |
|---|---|
| ₹0 to ₹4,00,000 | Nil |
| ₹4,00,000 to ₹8,00,000 | 5% |
| ₹8,00,000 to ₹12,00,000 | 10% |
| ₹12,00,000 to ₹16,00,000 | 15% |
| ₹16,00,000 to ₹20,00,000 | 20% |
| ₹20,00,000 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Old regime (below 60): income | Rate |
|---|---|
| ₹0 to ₹2,50,000 | Nil |
| ₹2,50,000 to ₹5,00,000 | 5% |
| ₹5,00,000 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Both regimes add a 4% health and education cess on the tax, and a surcharge on very high incomes (10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore in the old regime only). The calculator applies marginal relief at each surcharge threshold.
The rebate that makes ₹12 lakh tax-free
Under the new regime, the Section 87A rebate cancels tax of up to ₹60,000 when taxable income does not exceed ₹12 lakh. With the ₹75,000 standard deduction, a salary of ₹12,75,000 therefore pays ₹0 in tax. In the old regime, the rebate is ₹12,500 for taxable income up to ₹5 lakh.
Just above ₹12 lakh, marginal relief prevents a cliff: the tax cannot exceed the income above ₹12 lakh. At a taxable income of ₹12,10,000, the slab tax would be ₹61,500, but relief cuts it to ₹10,000 before cess, the ₹10,000 by which income exceeds ₹12 lakh. The rebate is not available against special-rate income such as capital gains on shares and equity funds.
Which regime suits whom
The old regime wins only when your deductions are large. As income rises, the break-even level of deductions rises with it, up to about ₹8 lakh at high incomes, which few people reach without a large HRA exemption and home-loan interest. The calculator shows your personal break-even under the comparison table. Our old vs new regime guide works through examples at different salaries, including HRA in the newly added metro cities.
- Salaried taxpayers without business income can choose the regime each year when filing the return.
- Taxpayers with business or professional income can switch back to the old regime only once.
- The Income-tax Act, 2025, in force from 1 April 2026, renumbers many sections (80C becomes Section 123). We show the familiar names alongside.
Frequently asked questions
Is income up to ₹12 lakh tax-free in 2026-27?
Under the new regime, yes, for taxable income up to ₹12 lakh, thanks to the Section 87A rebate. For salaried people the ₹75,000 standard deduction takes this to a gross salary of ₹12.75 lakh. Special-rate income such as capital gains is not covered by the rebate.
Can I claim HRA in the new regime?
No. HRA exemption, 80C, 80D, home-loan interest on a self-occupied house and most other deductions are available only in the old regime. The new regime allows the standard deduction and the employer's NPS contribution.
Does the calculator handle capital gains?
No. Capital gains on shares and mutual funds are taxed at special rates (12.5% or 20% for listed equity) and are calculated separately. Enter only income taxed at slab rates here.
How accurate is this calculator?
It follows the slab rates, rebates, surcharge with marginal relief and cess in force for tax year 2026-27 for resident individuals. It does not cover every special case (agricultural income, specific exemptions, special-rate income). Use it to compare regimes, and confirm the final figure in your return.
Related reading
- Old vs new tax regime 2026-27: full guide
- ELSS vs PPF for tax saving
- Capital gains tax on stocks and funds
- Health insurance buying guide
This calculator is for education and planning. Results depend entirely on the assumptions you enter and are not a forecast, a guarantee or investment advice. Everything runs in your browser; nothing you enter is sent to us. Read our disclaimer. Built and checked by Pradeep Rawal.