Income tax slabs for tax year 2026-27
Updated 11 October 2026
In tax year 2026-27 the new regime taxes income up to ₹4 lakh at nil and then at 5%, 10%, 15%, 20% and 25% in steps of ₹4 lakh, reaching 30% above ₹24 lakh. Budget 2026 did not change any slab, rebate or standard deduction, so the rates are the same as in 2025-26. The old regime keeps its familiar slabs, with a higher nil slab for people aged 60 and above.
New regime slabs (default)
The new regime is the default under section 202 of the Income-tax Act, 2025 (section 115BAC of the 1961 Act). The same slabs apply at every age.
| Taxable income | Rate | Tax on this slab | Total tax at top of slab |
|---|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 | ₹0 |
| ₹4,00,001 to ₹8,00,000 | 5% | ₹20,000 | ₹20,000 |
| ₹8,00,001 to ₹12,00,000 | 10% | ₹40,000 | ₹60,000 |
| ₹12,00,001 to ₹16,00,000 | 15% | ₹60,000 | ₹1,20,000 |
| ₹16,00,001 to ₹20,00,000 | 20% | ₹80,000 | ₹2,00,000 |
| ₹20,00,001 to ₹24,00,000 | 25% | ₹1,00,000 | ₹3,00,000 |
| Above ₹24,00,000 | 30% | 30% of the excess | ₹3,00,000 + 30% of income above ₹24 lakh |
The "total" column is before rebate and cess. A resident individual with taxable income up to ₹12 lakh gets a rebate of up to ₹60,000, which wipes out the ₹60,000 of slab tax, so the tax is nil. Salaried people also get a ₹75,000 standard deduction, so the nil point is ₹12.75 lakh of salary. Just above ₹12 lakh, marginal relief keeps the tax from jumping.
Old regime slabs (optional)
| Taxable income | Below 60 | 60 to 79 (senior) | 80 and above (super senior) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 to ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 to ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Tax at ₹10 lakh of taxable income is ₹1,12,500 below 60, ₹1,10,000 for seniors and ₹1,00,000 for super seniors. The old-regime rebate is up to ₹12,500 when taxable income is up to ₹5 lakh, so nobody in the old regime pays tax on income up to ₹5 lakh. The standard deduction is ₹50,000.
Surcharge and cess
High earners pay a surcharge, which is a percentage of the tax itself, not of income.
| Taxable income | New regime | Old regime |
|---|---|---|
| Up to ₹50 lakh | Nil | Nil |
| ₹50 lakh to ₹1 crore | 10% | 10% |
| ₹1 crore to ₹2 crore | 15% | 15% |
| ₹2 crore to ₹5 crore | 25% | 25% |
| Above ₹5 crore | 25% (capped) | 37% |
Surcharge on dividends and on capital gains taxed at special rates is capped at 15%. Marginal relief applies at each threshold, so crossing ₹50 lakh by ₹1,000 does not cost you lakhs. Finally, a 4% Health and Education Cess is added to tax plus surcharge in both regimes.
Worked examples
Taxable income of ₹30,00,000 in the new regime: ₹3,00,000 up to ₹24 lakh + 30% of ₹6,00,000 (₹1,80,000) = ₹4,80,000. Cess = ₹19,200. Total = ₹4,99,200.
The same ₹20,00,000 in the old regime (below 60): ₹1,12,500 up to ₹10 lakh + 30% of ₹10,00,000 (₹3,00,000) = ₹4,12,500. Cess = ₹16,500. Total = ₹4,29,000. The old regime only comes out ahead if deductions bring taxable income well below the new-regime figure.
Effective tax rate by salary
Because each slab taxes only its own slice, the share of your salary that goes in tax (the effective rate) is much lower than your top slab rate. For a salaried person in the new regime, after the ₹75,000 standard deduction and 4% cess:
| Gross salary | Total tax | Effective rate |
|---|---|---|
| ₹12,75,000 | Nil | 0% |
| ₹15,00,000 | ₹97,500 | 6.5% |
| ₹20,00,000 | ₹1,92,400 | 9.62% |
| ₹25,00,000 | ₹3,19,800 | 12.79% |
| ₹30,00,000 | ₹4,75,800 | 15.86% |
| ₹50,00,000 | ₹10,99,800 | 22% |
Even at ₹50 lakh, where the top slice is taxed at 30%, the tax works out to 22% of salary. Taxable income there is ₹49,25,000, just under the ₹50 lakh surcharge threshold.
Slabs apply to taxable income, not salary
Slab rates apply after deductions. A salary of ₹15 lakh in the new regime is taxed on ₹14.25 lakh, after the ₹75,000 standard deduction. Being "in the 15% slab" also does not mean 15% of your whole income goes in tax: only the slice above ₹12 lakh is taxed at 15%. Some income, such as capital gains on listed shares and equity mutual funds, is taxed at special flat rates instead of slabs; see capital gains tax.
For ready answers, see tax on a ₹10 lakh, ₹12.75 lakh, ₹15 lakh, ₹20 lakh or ₹30 lakh salary, or use the income tax calculator. To decide between the two tables above, read old vs new tax regime.