Quick answer
How much income tax will I pay in FY 2026-27?
For FY 2026-27, income tax under the new regime is zero on taxable income up to ₹12 lakh thanks to the ₹60,000 rebate, so a salary up to ₹12.75 lakh pays nothing after the ₹75,000 standard deduction. A ₹15 lakh salary pays ₹97,500 and a ₹25 lakh salary pays ₹3,19,800, including 4% cess.
- New regime slabs: 0–4L nil · 4–8L 5% · 8–12L 10% · 12–16L 15% · 16–20L 20% · 20–24L 25% · 24L+ 30%
- Standard deduction: ₹75,000 (new) · ₹50,000 (old)
- Rebate: up to ₹60,000 if taxable income ≤ ₹12 lakh (new) · ₹12,500 if ≤ ₹5 lakh (old)
What are the income tax slabs for FY 2026-27?
| Income | New regime | Old regime (below 60) |
|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil |
| ₹2.5 – 4 lakh | Nil | 5% |
| ₹4 – 5 lakh | 5% | 5% |
| ₹5 – 8 lakh | 5% | 20% |
| ₹8 – 10 lakh | 10% | 20% |
| ₹10 – 12 lakh | 10% | 30% |
| ₹12 – 16 lakh | 15% | 30% |
| ₹16 – 20 lakh | 20% | 30% |
| ₹20 – 24 lakh | 25% | 30% |
| Above ₹24 lakh | 30% | 30% |
Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%); the old regime adds 37% above ₹5 crore, while the new regime caps it at 25%. A 4% health and education cess applies on top.
Should I choose the new or the old tax regime?
The new regime has lower rates but allows almost no deductions apart from the standard deduction and employer NPS. The old regime keeps 80C, 80D, HRA and home loan interest. If your deductions are small, the new regime usually wins.
HRA exemption (old regime only) is 50% of basic pay in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad from FY 2026-27, and 40% elsewhere.
Frequently asked questions
What are the income tax slabs for FY 2026-27?
Under the new regime: 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% and above ₹24 lakh 30%. Budget 2026 kept these slabs unchanged.
Is income up to ₹12 lakh tax-free in FY 2026-27?
Yes, under the new regime. A rebate of up to ₹60,000 makes taxable income up to ₹12 lakh tax-free. For salaried people, the ₹75,000 standard deduction means a salary of up to ₹12.75 lakh pays no tax.
How much tax do I pay on a ₹15 lakh salary?
Under the new regime, a ₹15 lakh salary has taxable income of ₹14.25 lakh after the standard deduction, and the tax including 4% cess is ₹97,500. Under the old regime it depends on your deductions.
Which is better, the new or the old tax regime?
The new regime is better for most people unless they claim large deductions, typically more than about ₹4–5 lakh a year in 80C, 80D, HRA and home loan interest combined. Enter your deductions above to compare.
What changed with the Income-tax Act, 2025?
The new Act took effect on 1 April 2026 and replaces “assessment year” with “tax year”. Section 87A rebate is now Section 156. Slabs and rates for FY 2026-27 are the same as the previous year, and the 50% HRA limit now covers eight cities.
How much tax do I pay on a ₹20 lakh salary?
Under the new regime for FY 2026-27, a ₹20 lakh salary has taxable income of ₹19.25 lakh after the ₹75,000 standard deduction. Slab tax is ₹1,85,000 and the 4% cess adds ₹7,400, so the total is ₹1,92,400.
How is the 4% health and education cess calculated?
Cess is 4% of your income tax after the rebate, plus any surcharge. If your tax after the rebate is nil, the cess is nil too.