New regime slabs for FY 2026-27
Budget 2026 kept the slabs that the Finance Act 2025 brought in, so FY 2026-27 (assessment year 2027-28) uses the same rates as FY 2025-26:
| Taxable income | Tax rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 lakh – ₹8 lakh | 5% |
| ₹8 lakh – ₹12 lakh | 10% |
| ₹12 lakh – ₹16 lakh | 15% |
| ₹16 lakh – ₹20 lakh | 20% |
| ₹20 lakh – ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
A 4% health and education cess is added to the tax. The new regime is the default; you can still choose the old regime when you file if it suits you better.
Zero tax up to ₹12 lakh
A resident individual whose taxable income is up to ₹12 lakh gets a rebate under section 87A of up to ₹60,000, which wipes out the tax. Salaried people and pensioners also get a ₹75,000 standard deduction, so a salary of up to ₹12.75 lakh is tax-free.
Just above ₹12 lakh, marginal relief applies: the tax cannot be more than the income above ₹12 lakh. On a taxable income of ₹12.25 lakh, for example, the tax is ₹25,000 plus cess, not the full ₹63,750 the slabs give.
Examples (salaried, new regime)
| Salary | Taxable income | Tax incl. cess |
|---|---|---|
| ₹12,75,000 | ₹12,00,000 | ₹0 |
| ₹13,00,000 | ₹12,25,000 | ₹26,000 |
| ₹16,00,000 | ₹15,25,000 | ₹1,13,100 |
| ₹25,75,000 | ₹25,00,000 | ₹3,43,200 |
What this calculator does not cover
- The old regime and its deductions (80C, HRA, home loan interest)
- Capital gains and other income taxed at special rates; the 87A rebate does not apply to those
- Non-residents, HUFs and companies
Surcharge (10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore) is included, with marginal relief.
Tax and your loan
Lenders read your income from your ITR and salary slips, and your take-home pay after tax decides how big an EMI you can carry. See how much EMI you can afford or estimate a loan with the loan eligibility calculator.