KyaTax

Income Tax Slabs — FY 2026-27 and FY 2025-26

New regime and old regime rates, the ₹12 lakh rebate, surcharge and cess — read live from the same rules engine that powers the KyaTax calculator and ITR wizard.

Budget 2026 changed no slab, rebate or limit. FY 2026-27 is the first "Tax Year" under the Income-tax Act, 2025 — same numbers, new section references.

New tax regime (default) 87A rebate: nil tax up to ₹12 lakh

Taxable incomeRateTax at top of slab

Old tax regime (optional)

Individuals below 60 years

Taxable incomeRateTax at top of slab

Senior citizens (60 to 79 years)

Taxable incomeRateTax at top of slab

Super senior citizens (80 years and above)

Taxable incomeRateTax at top of slab

Rebate, standard deduction, surcharge and cess

Worked examples (salary, no other income)

Gross salaryNew regime taxOld regime tax (no deductions)Old regime tax (₹3 lakh deductions)

Includes 4% cess. Old regime examples take the ₹50,000 standard deduction; the "₹3 lakh deductions" column adds 80C, 80D and similar. Compute your own case — including HRA, home loan and employer NPS — on the Income Tax Calculator.

Which regime should you choose?

With taxable income up to ₹12 lakh the new regime is nil tax, so it wins unless your deductions are so large that the old regime also reaches nil. Above that, the old regime needs roughly ₹8 lakh or more of combined deductions (HRA, 80C, 80D, home-loan interest, NPS) at higher incomes to overtake the new regime. Salaried taxpayers without business income can switch regimes every year in the return; those with business income can opt out of the new regime only once.

Two things that survive in the new regime: the ₹75,000 standard deduction and employer NPS under 80CCD(2) up to 14% of basic plus DA.

FAQs

Is income up to ₹12 lakh really tax-free?

In the new regime, for taxable income up to ₹12,00,000 — the section 87A rebate (up to ₹60,000) wipes out the slab tax. A salaried person therefore pays nil up to ₹12.75 lakh of salary after the ₹75,000 standard deduction. Just above the limit, marginal relief ensures the tax never exceeds the income over ₹12 lakh. Capital gains and other special-rate income are not covered by the rebate.

Did Budget 2026 change the slabs?

No. The February 2026 Budget left the new-regime slabs, the 87A rebate and the standard deduction unchanged for FY 2026-27. What changed is the law itself — the Income-tax Act, 2025 replaces the 1961 Act from 1 April 2026, with "Tax Year" replacing "previous year" and renumbered sections.

What is marginal relief?

For taxable income slightly above ₹12 lakh in the new regime, tax is limited to the amount by which income exceeds ₹12 lakh. At ₹12,25,000 the slab tax of ₹63,750 is capped at ₹25,000 (plus cess), so a small rise in income never produces a larger rise in tax.

Do senior citizens get different slabs in the new regime?

No — the new regime has one slab table for all ages. Age-based higher exemption limits (₹3 lakh and ₹5 lakh) exist only in the old regime.

Know your slab — now file the return

The ITR wizard compares both regimes on your actual numbers and handles belated returns after the due date.

File ITR from ₹199 →