Nayi Income Tax Slabs 2026 (FY 2026-27) — India
Latest tax slabs under the default New Tax Regime with standard deduction and 87A rebate.
New Tax Regime — Slabs for FY 2026-27
| Income Slab (₹) | Tax Rate |
|---|---|
| 0 – 4,00,000 | Nil |
| 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% |
- Standard deduction: ₹75,000 (salaried/pensioners).
- Section 87A rebate (Budget 2025): 100% tax rebate up to ₹60,000 if taxable income ≤ ₹12,00,000. Hence, effectively zero tax up to ₹12,75,000 CTC-equivalent for salaried employees.
- Marginal relief applies just above ₹12 lakh — tax cannot exceed (taxable income − ₹12,00,000).
- Health & Education cess: 4% on tax.
- Surcharge: 10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr (capped at 25% under new regime).
Old Tax Regime — Slabs (for comparison)
| Income Slab (₹) | Tax Rate |
|---|---|
| 0 – 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Old regime retains all deductions — 80C, 80D, HRA, home-loan interest, LTA etc. Standard deduction ₹50,000.
Real Examples — Salary ₹10 Lakh Tax Calculation (Budget 2025, FY 2025-26)
Case A — ₹10 lakh, New Regime (no deductions)
- Gross: ₹10,00,000 − Standard deduction ₹75,000 = ₹9,25,000 taxable.
- Tax (revised slabs): 0% up to ₹4L + 5% on ₹4L + 10% on ₹1.25L = ₹20,000 + ₹12,500 = ₹32,500.
- Section 87A rebate (taxable ≤ ₹12L): up to ₹60,000 → wipes out the entire ₹32,500.
- Final tax = ₹0.
Case B — ₹10 lakh, Old Regime (with ₹1.5L 80C + ₹25K 80D + ₹1L HRA)
- Gross ₹10,00,000 − SD ₹50K − 80C ₹1.5L − 80D ₹25K − HRA ₹1L = ₹6,75,000 taxable.
- Tax: 0% up to ₹2.5L + 5% on ₹2.5L + 20% on ₹1.75L = ₹12,500 + ₹35,000 = ₹47,500.
- + 4% cess = ₹49,400 total tax.
Try It Yourself
Use our free Income Tax Calculator India 2026 — it compares both regimes with your exact numbers.
Aksar Poochhe Jaane Wale Sawaal
What is the new tax regime 87A rebate in 2026?
Under Budget 2025 (FY 2025-26 / AY 2026-27), Section 87A gives a 100% rebate up to ₹60,000 if your taxable income under the new regime is ≤ ₹12,00,000. Practically this means zero income tax up to ₹12.75 lakh salary (after ₹75K standard deduction). Marginal relief applies just above ₹12 lakh.
How much tax on ₹12 lakh salary in 2026?
Under the new regime (Budget 2025), a salaried person earning ₹12 lakh CTC pays ₹0 income tax — taxable income after ₹75K standard deduction is ₹11.25 lakh, fully covered by the ₹60,000 rebate under Section 87A.
Is HRA available under the new tax regime?
No, HRA exemption is not allowed under the new regime. However, standard deduction, employer NPS contribution and family pension deduction are available.
What is the surcharge in 2026?
10% on income ₹50L–1Cr, 15% on ₹1Cr–2Cr, 25% on ₹2Cr+ (capped at 25% for new regime).