IT Act 1961 → 2025 / Salaried employees / Slab rates
Slab rates for tax year 2026-27
The rates that apply to salary and other normal income of individuals from 1 April 2026, under both regimes.
Tax year 2026-27 · Income-tax Act, 2025 as amended by Finance Act 2026 · reviewed 5 November 2026
New tax regime — section 202 (default)
Section 202(1) of the Income-tax Act, 2025 (old section 115BAC) applies to every individual unless they opt out. The slabs are written into the Act itself and are the same for all ages.
| Total income | Rate |
|---|---|
| Up to ₹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% |
Old tax regime
The old regime rates are fixed every year by the Finance Act. Budget 2026 did not change them. The basic exemption limit depends on age. The higher limits for senior and super-senior citizens apply only to residents.
| Total income | Below 60 | 60 to 79 (resident) | 80 and above (resident) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Tax at common income levels (before cess)
| Total income | New regime tax | After rebate (156) | Old regime tax (below 60) |
|---|---|---|---|
| ₹7,00,000 | ₹15,000 | Nil | ₹52,500 |
| ₹10,00,000 | ₹40,000 | Nil | ₹1,12,500 |
| ₹12,00,000 | ₹60,000 | Nil | ₹1,72,500 |
| ₹15,00,000 | ₹1,05,000 | ₹1,05,000 | ₹2,62,500 |
| ₹20,00,000 | ₹2,00,000 | ₹2,00,000 | ₹4,12,500 |
| ₹25,00,000 | ₹3,30,000 | ₹3,30,000 | ₹5,62,500 |
'Total income' is after deductions. Under the old regime most salaried people have much lower total income than salary because of HRA, 80C and other deductions — compare the final tax, not the slabs.
Surcharge and cess
- Surcharge on income-tax: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, 37% above ₹5 crore (old regime).
- Under the new regime the surcharge is capped at 25%.
- On dividends and on capital gains taxed at special rates (listed equity STCG and LTCG, other LTCG) the surcharge is capped at 15%.
- Marginal relief: the extra tax plus surcharge cannot exceed the income above the threshold.
- Health and education cess: 4% on income-tax plus surcharge, under both regimes.
Special rates that sit outside the slabs
- Listed equity STCG: 20%; LTCG on listed equity above ₹1.25 lakh: 12.5%; other LTCG: 12.5% (sections 196–198).
- Lottery, betting, online game winnings and virtual digital assets: 30% (section 194 table).
- Lottery, online game and VDA income is taxed at 30% with no basic exemption. For resident individuals, any unused basic exemption first absorbs STCG/LTCG (sections 196–198). Under the new regime the rebate cannot be used against special-rate income (156(3)).
Frequently asked
What are the income tax slabs for FY 2026-27 under the new regime?
Nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% for each ₹4 lakh band, and 30% above ₹24 lakh (section 202 of the Income-tax Act, 2025).
Did Budget 2026 change tax slabs?
No. The new regime slabs in section 202 and the old regime rates in the Finance Act are unchanged for FY 2026-27.