Income tax
Income Tax Slabs for AY 2026–27
A plain-English guide to the old and new regime slabs that apply to income earned in FY 2025–26, including the standard deduction, rebate and cess.
About this guide
Reference directory
AY 2026–27 means which financial year?
Assessment Year 2026–27 covers income earned during Financial Year 2025–26, from 1 April 2025 to 31 March 2026. The assessment year is the period in which that income is reported and assessed. Keeping these two labels separate prevents one of the most common tax-search mistakes.
New-regime slabs
For AY 2026–27, the new-regime bands are: nil up to ₹4,00,000; 5% from ₹4,00,001 to ₹8,00,000; 10% from ₹8,00,001 to ₹12,00,000; 15% from ₹12,00,001 to ₹16,00,000; 20% from ₹16,00,001 to ₹20,00,000; 25% from ₹20,00,001 to ₹24,00,000; and 30% above ₹24,00,000. Salaried taxpayers can generally account for the ₹75,000 standard deduction before applying the slabs.
Old-regime slabs
For an individual below 60, the old-regime bands remain nil up to ₹2,50,000; 5% from ₹2,50,001 to ₹5,00,000; 20% from ₹5,00,001 to ₹10,00,000; and 30% above ₹10,00,000. The old regime may permit eligible exemptions and deductions that are unavailable under the new regime. Age, residential status and the nature of income can change the calculation.
How slab calculation works
Suppose taxable income under the new regime is ₹10 lakh. The first ₹4 lakh is taxed at nil, the next ₹4 lakh at 5%, and the remaining ₹2 lakh at 10%. That produces slab tax of ₹40,000 before considering Section 87A and cess. It is incorrect to multiply the entire ₹10 lakh by 10%.
What this guide does not calculate
Capital gains, lottery winnings and some other incomes can be taxed at special rates. Surcharge may apply at higher incomes, while marginal relief can affect the amount around specific thresholds. Use the calculator for a salary-only estimate, then verify the result against the Income Tax Department before filing.
Sources and verification
Use these references to verify this income tax guide. Check the document date, relevant period and any conditions before relying on a figure or rule.
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