# Income Tax Slabs FY 2026-27 (AY 2027-28): Both Regimes > Income tax slabs for FY 2026-27 under the new and old regimes, with the 87A rebate, marginal relief, surcharge, cess and the tax at common incomes. Source: https://trykosh.com/learn/income-tax-slabs-fy-2026-27 Guide - Income tax # Income tax slabs for FY 2026-27, explained Budget 2026 kept both regimes' slab rates as they were, so FY 2026-27 (tax year 2026-27) uses the same tables as last year. Here they are, with what the rebate, surcharge and cess do to them, and the actual tax at common incomes. Updated 25 October 20266 min readBy the Kosh team On this page[What changed for FY 2026-27](#what-changed)[New regime slabs (the default)](#new-regime-slabs)[Old regime slabs](#old-regime-slabs)[Rebate, marginal relief, surcharge and cess](#rebate-surcharge-cess)[Tax at common incomes](#tax-at-common-incomes)[Worked example: from salary to tax, step by step](#worked-example)[Things the slab table doesn't cover](#not-covered)[Using the slabs to plan](#planning)[FAQs](#faq) ## What changed for FY 2026-27 Two things are new and one isn't. The **Income-tax Act, 2025** came into force on 1 April 2026, replacing the 1961 Act. It renames the "previous year" and "assessment year" as a single **tax year**, so FY 2026-27 is "tax year 2026-27" (you'll still see AY 2027-28 used for the return you file in 2027). Section numbers have changed too: 80C, for example, is now section 123. What **didn't** change is the money: Budget 2026 left the slabs, rebate, standard deduction and surcharge of both regimes untouched. ## New regime slabs (the default) The new regime applies unless you choose the old one. Its slabs are the same for every age. New regime, FY 2026-27, all ages Taxable income Rate Tax on the full slab Up to INR 4 lakh 0% INR 0 INR 4 lakh to INR 8 lakh 5% INR 20,000 INR 8 lakh to INR 12 lakh 10% INR 40,000 INR 12 lakh to INR 16 lakh 15% INR 60,000 INR 16 lakh to INR 20 lakh 20% INR 80,000 INR 20 lakh to INR 24 lakh 25% INR 1,00,000 Above INR 24 lakh 30% 30% of the excess Salaried people and pensioners subtract a **INR 75,000 standard deduction** first. The only other common deduction is your employer's NPS contribution, up to 14% of basic. ## Old regime slabs The old regime has three age bands. You pick it in your return (and tell your employer, so TDS is right). Old regime, FY 2026-27 Taxable income Below 60 60 to 79 80 and above Up to INR 2.5 lakh 0% 0% 0% INR 2.5 lakh to INR 3 lakh 5% 0% 0% INR 3 lakh to INR 5 lakh 5% 5% 0% INR 5 lakh to INR 10 lakh 20% 20% 20% Above INR 10 lakh 30% 30% 30% The standard deduction here is INR 50,000, and you can subtract HRA exemption, 80C, 80D, NPS under 80CCD(1B), home-loan interest and the rest. Whether that's worth the higher rates is the subject of our [old vs new regime guide](/learn/old-vs-new-tax-regime-fy-2026-27). ## Rebate, marginal relief, surcharge and cess The slab table is only the first step. Four adjustments turn "tax on slabs" into the tax you actually pay. - **87A rebate.** Residents whose taxable income is INR 12 lakh or less get a rebate of up to INR 60,000 in the new regime, which wipes out the slab tax completely. In the old regime the rebate is up to INR 12,500 for taxable income up to INR 5 lakh. Non-residents don't get it, and it can't be used against tax on special-rate income such as equity capital gains. - **Marginal relief at INR 12 lakh (new regime).** Without it, earning INR 12,10,000 instead of INR 12,00,000 would cost INR 61,500 in tax. Instead, the tax is capped at the income above INR 12 lakh. At INR 12,10,000 taxable you pay INR 10,000 plus cess, so **INR 10,400**. At INR 12,50,000 you pay INR 50,000 plus cess, **INR 52,000**. The relief fades out at about INR 12.71 lakh of taxable income (roughly INR 13.46 lakh of salary). - **Surcharge.** An extra percentage of the tax when taxable income crosses INR 50 lakh (10%), INR 1 crore (15%) and INR 2 crore (25%). The old regime has a further 37% band above INR 5 crore. Marginal relief applies at each threshold too. - **Cess.** 4% health and education cess on the tax plus surcharge. Every figure below includes it. ## Tax at common incomes These are computed with the [income tax calculator](/tools/income-tax-calculator) for a resident below 60, on **taxable income** (after deductions), so they apply to salaried and non-salaried people alike. Total tax including cess on taxable income, FY 2026-27, resident below 60 Taxable income New regime Old regime INR 7 lakh INR 0 INR 54,600 INR 10 lakh INR 0 INR 1,17,000 INR 12 lakh INR 0 INR 1,79,400 INR 12.5 lakh INR 52,000 INR 1,95,000 INR 15 lakh INR 1,09,200 INR 2,73,000 INR 20 lakh INR 2,08,000 INR 4,29,000 INR 24 lakh INR 3,12,000 INR 5,53,800 INR 30 lakh INR 4,99,200 INR 7,41,000 INR 50 lakh INR 11,23,200 INR 13,65,000 Don't read the old-regime column as "the old regime costs more". The same salary has a much lower taxable income in the old regime once deductions come off. The table compares the two at equal taxable income only. [Free tool**Income tax calculator**Work out your income tax for FY 2026-27 under both regimes in one go. Kosh applies the current slabs, the INR 75,000 standard deduction, the 87A rebate, surcharge with marginal relief and 4% cess.](/tools/income-tax-calculator)[Free tool**New tax regime calculator**See your tax under the default new regime, slab by slab, including the rebate that makes income up to INR 12 lakh tax-free and the marginal relief just above it.](/tools/new-tax-regime-calculator)[Free tool**Old tax regime calculator**Claim every deduction the old regime allows and see your tax slab by slab, side by side with what the new regime would charge for the same income.](/tools/old-tax-regime-calculator)[Free tool**87A rebate calculator**See whether the 87A rebate wipes out your tax, and if you're just over INR 12 lakh, how much marginal relief you get.](/tools/section-87a-rebate-calculator)[Free tool**Surcharge calculator**For incomes above INR 50 lakh: see your surcharge band, how much marginal relief saves you at the threshold, and your total tax with cess.](/tools/surcharge-calculator) ## Worked example: from salary to tax, step by step Meera earns a gross salary of INR 15 lakh and stays in the new regime. 1. Gross salary: INR 15,00,000. 2. Subtract the standard deduction of INR 75,000. Taxable income: **INR 14,25,000**. 3. Slab tax: INR 0 on the first INR 4 lakh, INR 20,000 on INR 4 to 8 lakh, INR 40,000 on INR 8 to 12 lakh, and 15% of INR 2,25,000 (INR 33,750) on the rest. Total **INR 93,750**. 4. Rebate: none, because taxable income is above INR 12 lakh and well past the marginal-relief zone. 5. Cess at 4%: INR 3,750. Total tax: **INR 97,500** a year, or INR 8,125 a month in TDS. Her **marginal rate** is 15% (plus cess): each extra INR 1,000 of salary costs her INR 156 in tax. Her **effective rate**, total tax divided by gross salary, is 6.5%. The two are often confused. Your marginal rate is what matters for decisions like whether a bonus or a deduction is worth it; your effective rate is what you actually pay overall. ## Things the slab table doesn't cover - **Special-rate income** is taxed outside the slabs: listed equity gains (20% short-term, 12.5% long-term above INR 1.25 lakh), crypto (30%), lottery and game winnings (30%). See the [capital gains guide](/learn/capital-gains-tax-on-shares-and-mutual-funds). - **Everything else is added up first.** FD interest, rent, freelance income and debt-fund gains join your salary and are taxed at your slab. A INR 40,000 FD interest credit can push you from zero tax to some tax if it takes you past INR 12 lakh. - **Non-residents** use the same slabs but get no 87A rebate, so an NRI with INR 6 lakh of Indian income pays INR 10,400 where a resident pays nothing. See [NRI income tax](/learn/nri-income-tax-india). ## Using the slabs to plan Knowing where the slab edges fall turns into real decisions, especially around the INR 12 lakh line in the new regime. - **Just above INR 12.75 lakh of salary?** A INR 13 lakh salary pays INR 26,000 of tax. If your employer routes INR 25,000 of it into your NPS account (employer contributions up to 14% of basic are deductible in the new regime), taxable income drops to INR 12 lakh and the tax becomes **INR 0**. Putting INR 25,000 aside for retirement saves INR 26,000 of tax. - **Bonus near year-end.** A bonus is taxed at your marginal rate. If it would push you past INR 12 lakh of taxable income this year but not next, a payout in April rather than March can be worth asking about. The [tax on bonus calculator](/tools/tax-on-bonus-calculator) shows the difference. - **Interest and small gains.** FD interest and debt-fund gains are slab income. If you're close to INR 12 lakh, spreading FD maturities across years can keep you under the line. - **Higher slabs.** Above INR 24 lakh, every extra rupee is taxed at 30% plus cess in both regimes. That's where old-regime deductions have the most value per rupee, which is why the [regime comparison](/learn/old-vs-new-tax-regime-fy-2026-27) tilts at high salaries with large deductions. ## Frequently asked questions What are the income tax slabs for FY 2026-27 in the new regime? Nil up to INR 4 lakh, 5% from INR 4 lakh to INR 8 lakh, 10% to INR 12 lakh, 15% to INR 16 lakh, 20% to INR 20 lakh, 25% to INR 24 lakh and 30% above INR 24 lakh. A 4% cess is added. The 87A rebate makes taxable income up to INR 12 lakh tax-free for residents. Did Budget 2026 change the tax slabs? No. Budget 2026 left the slabs, the 87A rebate, the standard deduction and the surcharge rates of both regimes unchanged for FY 2026-27. The main change is legal: the Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. What is the tax on INR 15 lakh salary in FY 2026-27? In the new regime, a INR 15 lakh salary has taxable income of INR 14.25 lakh after the INR 75,000 standard deduction, and the tax is INR 97,500 including cess. In the old regime the tax depends on your deductions; with no deductions beyond the standard deduction it would be INR 2,57,400. What is marginal relief in the new tax regime? It stops a small rise in income above INR 12 lakh from costing more than the rise itself. If your taxable income is INR 12.1 lakh, your tax is capped at the INR 10,000 above INR 12 lakh plus cess. The relief fades out at about INR 12.71 lakh of taxable income. Is AY 2027-28 the same as FY 2026-27? Yes. FY 2026-27 is the year you earn the income, from 1 April 2026 to 31 March 2027, and AY 2027-28 is the year you file the return for it. The Income-tax Act, 2025 calls the earning year the tax year, so it is also tax year 2026-27. ## Sources - [Income Tax Department](https://www.incometax.gov.in/) - [Union Budget 2026-27](https://www.indiabudget.gov.in/) Written by the Kosh team and checked against the rules in force on 25 October 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting. ## Upload your statement and Kosh does this for you. Kosh reads your bank and card statements, works out your tax under both regimes and turns guides like this one into your own numbers and next steps. [Start free](/signup?via=learn-income-tax-slabs-fy-2026-27)