New Regime Tax Slabs (Default)
The new tax regime is the default option for FY 2026-27. It offers lower rates but does not allow most deductions and exemptions (except standard deduction and employer NPS contribution).
| Taxable Income | Tax Rate |
|---|---|
| ₹0 – ₹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 Regime Tax Slabs
The old regime allows all deductions (80C, 80D, HRA, home loan interest, etc.) but has higher base rates. You must actively opt in by filing Form 10-IE before the due date.
| Taxable Income | Individual (<60 yrs) | Senior (60-80 yrs) | Super Senior (80+) |
|---|---|---|---|
| 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% |
Rebate Under Section 87A
Old Regime: Rebate of up to ₹12,500 if taxable income does not exceed ₹5,00,000.
Surcharge Rates FY 2026-27
| Taxable Income | Surcharge Rate (on tax) |
|---|---|
| Up to ₹50,00,000 | Nil |
| ₹50,00,001 – ₹1,00,00,000 | 10% |
| ₹1,00,00,001 – ₹2,00,00,000 | 15% |
| ₹2,00,00,001 – ₹5,00,00,000 | 25% |
| Above ₹5,00,00,000 | 37% (old) / 25% (new regime cap) |
Note: Under the new regime, the maximum surcharge is capped at 25% regardless of income level. Marginal relief applies at each threshold.
Health & Education Cess
A cess of 4% is levied on the total tax amount (including surcharge) under both regimes. This funds primary education and health infrastructure.
Who Should Choose Which Regime?
Choose New Regime If:
- Your total deductions are less than ₹3-4 lakh
- You don't have HRA claims or home loan interest
- You prefer simplicity with no documentation
- Your income is below ₹12.75 lakh (effectively zero tax)
- You are a new employee or freelancer without many investments
Choose Old Regime If:
- You claim HRA exemption (metro tenant with high rent)
- You have home loan interest exceeding ₹2 lakh
- You max out 80C (₹1.5L) + 80D (₹25-50K) + NPS (₹50K)
- Your total deductions exceed ₹4 lakh
- You have LTA, children education allowance, or other exemptions
As a general rule: if your eligible deductions and exemptions exceed ₹3.75 lakh, the old regime likely saves more tax. Use our calculator to compare exact numbers for your situation.
Quick Comparison: Tax on ₹15 Lakh Income
| Particulars | New Regime | Old Regime (with ₹4L deductions) |
|---|---|---|
| Gross Income | ₹15,00,000 | ₹15,00,000 |
| Standard Deduction | ₹75,000 | ₹50,000 |
| Other Deductions | Nil | ₹4,00,000 |
| Taxable Income | ₹14,25,000 | ₹10,50,000 |
| Tax (before cess) | ₹1,53,750 | ₹1,32,500 |
| Cess (4%) | ₹6,150 | ₹5,300 |
| Total Tax | ₹1,59,900 | ₹1,37,800 |
This example shows that with ₹4 lakh in deductions, the old regime saves approximately ₹22,100. Without deductions, the new regime would be better.
Compare both regimes with your actual income and deductions
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