Income Tax Slabs 2026-27 — New vs Old Regime Explained
calendar_monthPublished 2026-04-10
Understanding India’s income-tax slabs is the first step to keeping more of your salary. Here’s what applies for the current financial year and how to choose between the two regimes.
The new regime slabs
The new regime is the default since FY 2023-24. With the flat ₹75,000 standard deduction and the 87A rebate, income up to ₹12,00,000 is tax-free.
| Income slab | Rate |
|---|---|
| 0 – ₹4,00,000 | 0% |
| ₹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% |
Plus a 4% health and education cess on the tax amount.
The old regime
The old regime offers deductions — Section 80C (up to ₹1.5 lakh), 80D (health insurance), HRA, home-loan interest — with slabs of 0% to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, and 30% above. A ₹50,000 standard deduction and the 87A rebate (income up to ₹5 lakh tax-free) also apply.
Which regime should you choose?
The general rule:
- Claim many deductions? Old regime, because each deduction directly lowers taxable income.
- Few or no deductions? New regime, with its lower rates and generous rebate.
The best way to decide is to calculate your tax under both. For a salaried person without major deductions, the new regime usually wins. With a full ₹1.5 lakh in 80C plus HRA and 80D, the old regime often wins.
Worked example
₹15,00,000 income, no deductions beyond the standard deduction:
- New regime: taxable ₹14,25,000 → tax ≈ ₹97,500 (after 4% cess)
- Old regime: taxable ₹14,50,000 → tax ≈ ₹2,79,500 (after 4% cess)
New regime wins clearly here. But with ₹2 lakh of 80C + 80D + HRA deductions, the old regime number drops toward (and often below) the new regime figure.
Compute your exact liability under both regimes with the Income Tax Calculator.