2026 India New Tax Regime Slabs
Complete Section 115BAC slab schedule for FY 2026-27 (AY 2027-28), the Rs 75,000 salaried standard deduction, 87A rebate up to Rs 60,000, 4% cess, and a live calculator that runs the math in your browser.
2026 New Tax Regime - full table
| Annual income | Tax rate |
|---|---|
| Rs 0 - Rs 400,000 | Nil |
| Rs 400,000 - Rs 800,000 | 5% |
| Rs 800,000 - Rs 1,200,000 | 10% |
| Rs 1,200,000 - Rs 1,600,000 | 15% |
| Rs 1,600,000 - Rs 2,000,000 | 20% |
| Rs 2,000,000 - Rs 2,400,000 | 25% |
| Above Rs 2,400,000 | 30% |
2026 new regime income tax calculator (India)
Enter your gross salary. The calculator applies Section 115BAC slabs for FY 2026-27 (AY 2027-28), the Rs 75,000 salaried standard deduction, the Section 87A rebate (income up to Rs 1,200,000), and 4% health & education cess. Everything runs in your browser.
FY 2026-27 (AY 2027-28) Section 115BAC slabs + Rs 75,000 salaried standard deduction + 87A + 4% cess. Surcharge for very high earners not modeled here.
What changed from 2025 to 2026 (new regime)
The 2026 new-regime slabs are projected to be the same as 2025 - Indian tax slabs are not auto-indexed for inflation and only change when the Finance Bill modifies them. The Budget 2025 restructure (zero tax up to Rs 4L, 30% top slab at Rs 24L+) is expected to remain in force through FY 2026-27 unless the Budget 2026 session changes it.
Key headline numbers carried forward:
- Standard deduction (salaried): Rs 75,000
- 87A rebate ceiling: Rs 1,200,000 of taxable income (effective tax = nil for incomes up to ~Rs 12.75L gross)
- Maximum 87A rebate: Rs 60,000
- Health & education cess: 4% on tax + surcharge
How 2026 new tax regime work
India's new tax regime under Section 115BAC, introduced by the Finance Act 2020 and comprehensively restructured by Budget 2025, is the default tax regime for individuals and HUFs from AY 2024-25 onwards. For FY 2026-27 (AY 2027-28) the slabs are seven tiers from nil up to Rs 4 lakh, rising to 30% above Rs 24 lakh.
The new regime trades deductions for lower headline rates and a much more generous Section 87A rebate. A salaried taxpayer earning up to Rs 1,275,000 gross effectively pays zero tax after the Rs 75,000 standard deduction and the Rs 60,000 87A rebate. The cliff is sharp: a rupee above Rs 1,200,000 of taxable income knocks out the full rebate, though marginal relief blunts the worst of it.
What you give up in the new regime: Chapter VI-A deductions like Section 80C[1] (PPF, ELSS, LIC, etc.), 80D health insurance, HRA exemption, Section 24(b) home loan interest on self-occupied property, LTA, professional tax under 16(iii), Section 80E education loan interest, and most others. The standard deduction (Rs 75,000 for salaried/pensioners) and the employer's NPS contribution under 80CCD(2) are the major surviving deductions.
Tax on income above Rs 50 lakh attracts surcharge: 10% on Rs 50L-1Cr tax, 15% on 1Cr-2Cr, and 25% on income above Rs 2 crore. (The new regime caps the highest surcharge at 25%, while the old regime adds a 37% top surcharge - a meaningful win for new-regime ultra-high earners.) On top of slab tax + surcharge, every taxpayer pays 4% Health & Education Cess.
How to use the 2026 brackets in practice
Step 1: Compute gross total income. Sum salary, business/professional income, capital gains, rental income, and other income heads. Salaried taxpayers can deduct the Rs 75,000 standard deduction from salary income automatically.
Step 2: Apply the slabs above. Tax = 0% on first Rs 4L + 5% on next Rs 4L + 10% on next Rs 4L + ... up to 30% above Rs 24 lakh. Add tax across all applicable slabs to get pre-rebate tax.
Step 3: Apply Section 87A rebate. If taxable income is up to Rs 1,200,000, you get a rebate up to Rs 60,000 - effectively zero tax for low-mid earners. Marginal relief applies just above the limit to prevent a sharp cliff.
Step 4: Add surcharge (if income above Rs 50 lakh). 10% / 15% / 25% on tax (not on income) for the Rs 50L-1Cr, Rs 1Cr-2Cr, and above Rs 2Cr brackets respectively. The 37% surcharge that exists in the old regime is capped at 25% in the new regime.
Step 5: Add 4% Health & Education Cess. Cess applies on tax + surcharge, not on income. This is the final liability before TDS / advance tax credit.
Step 6: Pay via TDS, advance tax or self-assessment. Employers deduct TDS each month based on declared salary and tax-saving investments. If income from other sources is substantial, file quarterly advance tax (15 June / 15 Sep / 15 Dec / 15 March). Final balance is settled with the ITR by 31 July (non-audit cases) or 31 October (audit).
Frequently asked questions - 2026 new tax regime
What is the new tax regime in India for 2026?
The new tax regime under Section 115BAC, effective from FY 2020-21 and substantially revised in Budget 2025, is the default tax regime from AY 2024-25 onwards. For FY 2026-27 (AY 2027-28), the slabs are: nil up to Rs 4L, 5% on Rs 4L-Rs 8L, 10% on Rs 8L-Rs 12L, 15% on Rs 12L-Rs 16L, 20% on Rs 16L-Rs 20L, 25% on Rs 20L-Rs 24L, and 30% above Rs 24L. Officially in effect.
Is the standard deduction available in the new regime for 2026?
Yes. Salaried taxpayers and pensioners can claim a standard deduction of Rs 75,000 from gross salary income, raised from Rs 50,000 in Budget 2024. The deduction is automatic - it applies whether you claim it in the ITR or not, and does not need any investment proof.
How does the Section 87A rebate work in the 2026 new regime?
If your taxable income (after standard deduction) does not exceed Rs 1,200,000, you get a tax rebate up to Rs 60,000 - effectively zero tax. Above Rs 1,200,000, the rebate does not apply and you pay tax on every slab above zero. Marginal relief applies just above the limit to prevent a sharp cliff.
Will the 2026 new regime slabs change?
Slabs change only via the Finance Bill, which the Finance Minister presents in early February each year. Until 2026 Budget speech, the 2026 structure remains in force.
What deductions are NOT allowed in the 2026 new regime?
Most chapter VI-A deductions are disallowed under Section 115BAC: 80C investments (PPF, ELSS, LIC, etc.), 80D health insurance premium, HRA exemption, LTA, Section 24(b) home loan interest on self-occupied property, education loan interest under 80E, and most others. The only major deduction allowed is the salaried standard deduction (Rs 75,000) and the employer's NPS contribution (Section 80CCD(2)).
Should I choose old or new regime for 2026?
If your total deductions (80C + 80D + HRA + 24(b) + others) exceed roughly Rs 4-5 lakh, the old regime usually wins. If you have minimal investments and live in your own home (no HRA, no home loan), the new regime usually wins. Run both numbers in our Old vs New Regime Calculator to be sure - the breakeven shifts depending on your income level and HRA city tier.
How much tax do I pay on Rs 15 lakh in the 2026 new regime?
After the Rs 75,000 standard deduction, taxable income is Rs 14.25 lakh. Tax = nil on first Rs 4L + 5% on next Rs 4L (Rs 20,000) + 10% on next Rs 4L (Rs 40,000) + 15% on next Rs 2.25L (Rs 33,750) = Rs 93,750 + 4% cess (Rs 3,750) = Rs 97,500 total. Effective rate: ~6.5%.
What is the surcharge in the 2026 new regime?
Surcharge applies on top of slab tax for high earners: 10% on tax if income is Rs 50L-Rs 1Cr, 15% if Rs 1Cr-Rs 2Cr, and 25% if income exceeds Rs 2Cr. (The new regime caps the highest surcharge at 25%, while the old regime had a 37% top slab - one reason the new regime tends to favour very high earners.)
Can I switch between old and new regime each year?
Salaried taxpayers without business income can switch every year by indicating their choice in the ITR. Business or professional income earners can opt out of 115BAC only once, after which they cannot switch back unless their business ceases.
How does the 2026 regime compare to 2026?
For FY 2026-27 (AY 2027-28) the slab structure is the same as FY 2026-27. Indian slabs only change in Budget years - see 'What changed' for the full comparison.
Methodology and sources
Source for 2026 new tax regime: Indian Finance Act 2025 (effective AY 2026-27 onwards, continued for AY 2027-28).
What the calculator does NOT model:
- State / provincial / regional income tax (US states, Scottish rates, UK devolved nations have separate schedules)
- Local city / municipal income tax
- Investment income surcharges (US Net Investment Income Tax 3.8%, UK dividend allowance, etc.)
- Surcharge on very high incomes (India: 10/15/25% on tax for Rs 50L+ earners)
- Salary sacrifice, pension contributions, salary packaging
- Cesses and levies beyond the main income tax (where applicable)
- Self-employment tax (SE tax in US, Class 2/4 NI in UK)
Last updated 2026. Tax rules change frequently; if a Budget or Revenue Procedure is published between this page's update date and the tax year it covers, the numbers may shift. Always cross-check with the relevant tax authority before filing. This is an informational page, not tax advice.