FY 2026-27 new tax regime slabs
| Annual taxable income | Tax rate |
|---|---|
| Up to Rs 4,00,000 | Nil |
| Rs 4,00,001 - Rs 8,00,000 | 5% |
| Rs 8,00,001 - Rs 12,00,000 | 10% |
| Rs 12,00,001 - Rs 16,00,000 | 15% |
| Rs 16,00,001 - Rs 20,00,000 | 20% |
| Rs 20,00,001 - Rs 24,00,000 | 25% |
| Above Rs 24,00,000 | 30% |
Standard deduction and the Rs 12 lakh rebate
Salaried and pension taxpayers deduct Rs 75,000 automatically before the slabs apply. Then, if your net taxable income is up to Rs 12 lakh, the Section 87A rebate (capped at Rs 60,000) cancels the entire tax - so gross salary up to roughly Rs 12.75 lakh can be tax-free. Just above Rs 12 lakh, marginal relief keeps the tax from jumping.
Quick examples
- Salaried income Rs 12,00,000 (after Rs 75,000 deduction, taxable Rs 11,25,000): tax = Rs 52,500 before rebate, fully cancelled by 87A - nil tax.
- Salaried income Rs 15,00,000: taxable Rs 14,25,000 - tax Rs 93,750 + 4% cess = Rs 97,500.
- Income Rs 50,00,000: taxable Rs 50,00,000 - tax Rs 10,80,000 + 4% cess = Rs 11,23,200.
Which regime should you pick?
The new regime (default) has lower slabs but few deductions. The old regime allows deductions such as Section 80C, 80D, HRA and home-loan interest. If your deductions are large, run both - enter the same income once with each regime and compare the result.
Frequently asked questions
Is income up to Rs 12 lakh really tax-free?
Up to Rs 12 lakh of net taxable income is tax-free due to the 87A rebate. Salaried people get the Rs 75,000 standard deduction on top, so gross salary up to about Rs 12.75 lakh can be tax-free. This only applies to the new regime.
Does this calculator cover capital gains, rent and other income?
This is a quick estimator for regular salary and business income. Special incomes such as capital gains, interest beyond the usual slabs, rent and dividends follow separate rules - treat the result as a planning figure and confirm with the income tax department's own tool.
What is the 4% health and education cess?
A cess of 4% is added on top of the tax computed, and the calculator includes it. It was introduced in 2018 to fund health and education, and applies in both regimes.