Tax slabs for FY 2026-27
New regime (the default). Salaried people get a ₹75,000 standard deduction, and there's no tax on taxable income up to ₹12 lakh after the rebate.
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
Old regime. ₹50,000 standard deduction for salaried people, and no tax on taxable income up to ₹5 lakh after the rebate.
| Taxable income | Below 60 | 60 to 79 | 80+ |
|---|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil | Nil |
| ₹2.5–3 lakh | 5% | Nil | Nil |
| ₹3–5 lakh | 5% | 5% | Nil |
| ₹5–10 lakh | 20% | 20% | 20% |
| Above ₹10 lakh | 30% | 30% | 30% |
Both regimes add a 4% health and education cess, and a surcharge above ₹50 lakh of income (10%), ₹1 crore (15%) and ₹2 crore (25%; 37% above ₹5 crore in the old regime), with marginal relief at each step.
Worked example
A ₹15 lakh salary with ₹1.5 lakh of 80C, ₹2 lakh of home loan interest and a ₹25,000 health insurance premium:
| New regime | Old regime | |
|---|---|---|
| Taxable income | ₹14,25,000 | ₹10,75,000 |
| Total tax | ₹97,500 | ₹1,40,400 |
Even with a home loan, the new regime saves ₹42,900 here. The old regime needs bigger deductions, like HRA, to win.
Home loans and tax
In the old regime, a home loan for a house you live in gives up to ₹2 lakh a year on interest and up to ₹1.5 lakh on principal (within 80C). The new regime gives neither. If the tax benefit is part of why you're not prepaying, run the numbers with prepay vs invest, and read home loan tax benefits: old vs new regime.
What this calculator covers
- Resident individuals, FY 2026-27 (tax year 2026-27 under the Income-tax Act, 2025).
- Salary or pension, interest and other normal income, and a self-occupied home loan.
- Not included: capital gains and other special-rate income, rent from a let-out property, business income, and agricultural income. Use the Income Tax Department's calculator or a tax professional for those.
- Deductions are capped at their limits (₹1.5 lakh for 80C, ₹2 lakh for home loan interest, ₹50,000 for NPS, ₹1 lakh for 80D in total, ₹2,500 for professional tax).
- HRA exemption uses 50% of basic + DA in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad (the last four were added from FY 2026-27), and 40% elsewhere.
- Taxable income and tax are rounded to the nearest ₹10, as the law requires.
Frequently asked questions
Which is better for me, the old or the new tax regime?
It depends on your deductions. The new regime has lower rates and no tax up to ₹12 lakh of taxable income (₹12.75 lakh salary after the ₹75,000 standard deduction), but allows almost no deductions. The old regime is better only if your HRA, 80C, home loan interest, 80D and NPS deductions are large. Enter yours above to see which wins.
Is income up to ₹12 lakh tax-free in the new regime?
Yes, for resident individuals: the rebate (section 87A, now section 156 of the Income-tax Act, 2025) covers the tax on taxable income up to ₹12 lakh. Salaried people also get the ₹75,000 standard deduction, so a salary up to ₹12.75 lakh pays no tax. Just above ₹12 lakh, marginal relief keeps the tax from exceeding the income above ₹12 lakh. The rebate doesn't apply to special-rate income such as capital gains.
Did Budget 2026 change the tax slabs?
No. The FY 2026-27 slabs, the ₹12 lakh rebate limit and the standard deduction are the same as FY 2025-26. What changed is the law itself: the Income-tax Act, 2025 applies from 1 April 2026, so many sections have new numbers (80C is now section 123, 80D is section 126).
Can I claim home loan interest in the new regime?
Not for a self-occupied house. The ₹2 lakh interest deduction and the 80C principal deduction are old-regime only. Interest on a let-out property is still deductible against its rent in the new regime, but the loss can't be set off against your salary.
Can I switch between regimes every year?
Salaried individuals without business income can choose the regime each year when filing their return. Tell your employer your choice at the start of the year so TDS matches. People with business or professional income can generally switch only once, so check before changing.