Is income up to ₹12 lakh tax-free in FY 2026-27?

Under the new regime, yes for most people: a rebate of up to ₹60,000 makes tax nil when total income is ₹12,00,000 or less. With the ₹75,000 standard deduction, that covers a salary of up to ₹12,75,000. The rebate does not apply to income taxed at special rates, such as some capital gains.

What are the new regime tax slabs for FY 2026-27?

Up to ₹4,00,000: nil. ₹4-8 lakh: 5%. ₹8-12 lakh: 10%. ₹12-16 lakh: 15%. ₹16-20 lakh: 20%. ₹20-24 lakh: 25%. Above ₹24 lakh: 30%. Health and education cess of 4% is added to the tax.

What are the old regime slabs?

Up to ₹2,50,000: nil (₹3,00,000 for ages 60-80 and ₹5,00,000 above 80). ₹2.5-5 lakh: 5%. ₹5-10 lakh: 20%. Above ₹10 lakh: 30%. The rebate is up to ₹12,500 when total income is ₹5,00,000 or less, and the standard deduction is ₹50,000.

What is marginal relief above ₹12 lakh?

In the new regime, if total income is just above ₹12,00,000, tax before cess cannot exceed the amount by which income exceeds ₹12,00,000. At ₹12,10,000 tax is capped at ₹10,000 instead of ₹61,500. The relief stops mattering at around ₹12.7 lakh of taxable income.

Which regime gives lower tax, new or old?

It depends on your income and deductions. The old regime can be lower only if you claim large deductions such as section 80C, 80D, home loan interest, or HRA. Choose Compare both regimes to see the total tax and take-home income under each.

Did Budget 2026 change the tax slabs?

No. Budget 2026 kept the FY 2025-26 rates, so FY 2026-27 uses the same slabs, rebate, and standard deduction. The Income-tax Act 2025 applies from 1 April 2026; it calls the year a tax year and renumbers sections, so the rebate formerly under section 87A sits in the new Act.

Is surcharge included?

Yes, when it applies. Surcharge starts above ₹50 lakh: 10% up to ₹1 crore, 15% up to ₹2 crore, and 25% above that, which is the cap in the new regime (the old regime adds 37% above ₹5 crore). Marginal relief applies at each threshold, and the 4% cess is charged on tax plus surcharge.

Is my income data sent anywhere?

No. The calculation runs entirely in your browser and nothing is uploaded.

Income tax calculator for FY 2026-27 (AY 2027-28)

Income tax in India is charged on total income after deductions, at slab rates that differ between the new (default) regime and the old regime.

Estimate income tax for FY 2026-27 under the new and old regimes, with the ₹12 lakh rebate, ₹75,000 standard deduction and 4% cess. Runs in your browser.

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Slabs, rebate and standard deduction for FY 2026-27 (tax year 2026-27, AY 2027-28), reviewed on 30 October 2026. Budget 2026 kept the FY 2025-26 rates, and the Income-tax Act 2025 applies from 1 April 2026.

An estimate, not tax advice. Income taxed at special rates, such as some capital gains, and reliefs not listed here can change your liability; confirm with the e-filing utility or a tax professional.

Last reviewed 30 Oct 2026

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Result

Taxable income₹14,25,000.00

Total tax₹97,500.00

Rebate and relief₹0.00

Cess₹3,750.00

Take-home₹14,02,500.00

Effective rate6.5%

Estimate for FY 2026-27 (tax year 2026-27) under the rates in force from 1 April 2026. Income taxed at special rates, such as some capital gains, is not modelled.

Slab breakdown (new regime, FY 2026-27)

Slab	Rate	Taxable in slab	Tax
₹0.00 - ₹4,00,000.00	0%	₹4,00,000.00	₹0.00
₹4,00,000.00 - ₹8,00,000.00	5%	₹4,00,000.00	₹20,000.00
₹8,00,000.00 - ₹12,00,000.00	10%	₹4,00,000.00	₹40,000.00
₹12,00,000.00 - ₹16,00,000.00	15%	₹2,25,000.00	₹33,750.00

Regime: New (FY 2026-27)
Gross income: ₹15,00,000.00
Standard deduction: ₹75,000.00
Taxable income: ₹14,25,000.00
Tax before rebate: ₹93,750.00
Rebate (formerly section 87A): ₹0.00
Tax after rebate: ₹93,750.00
Health and education cess: ₹3,750.00
Total tax: ₹97,500.00
Take-home income: ₹14,02,500.00
Effective rate: 6.5%
Estimate for FY 2026-27 (tax year 2026-27) under the rates in force from 1 April 2026. Income taxed at special rates, such as some capital gains, is not modelled.

Regime: New (FY 2026-27)
Gross income: ₹15,00,000.00
Standard deduction: ₹75,000.00
Taxable income: ₹14,25,000.00
Tax before rebate: ₹93,750.00
Rebate (formerly section 87A): ₹0.00
Tax after rebate: ₹93,750.00
Health and education cess: ₹3,750.00
Total tax: ₹97,500.00
Take-home income: ₹14,02,500.00
Effective rate: 6.5%
Estimate for FY 2026-27 (tax year 2026-27) under the rates in force from 1 April 2026. Income taxed at special rates, such as some capital gains, is not modelled.

Examples

Salary of ₹12.75 lakh: no tax

New regime: ₹12,75,000 − ₹75,000 standard deduction = ₹12,00,000 taxable. Slab tax is ₹60,000 (5% of ₹4 lakh + 10% of ₹4 lakh), and the rebate of up to ₹60,000 brings it to nil.

Salary of ₹15 lakh

New regime: taxable ₹14,25,000. Tax = ₹20,000 + ₹40,000 + 15% of ₹2,25,000 (₹33,750) = ₹93,750, plus 4% cess of ₹3,750: ₹97,500 in all.

Salary of ₹20 lakh

New regime: taxable ₹19,25,000. Tax = ₹20,000 + ₹40,000 + ₹60,000 + 20% of ₹3,25,000 (₹65,000) = ₹1,85,000, plus cess of ₹7,400: ₹1,92,400.

Salary of ₹25 lakh

New regime: taxable ₹24,25,000. Tax up to ₹24 lakh is ₹3,00,000, plus 30% of ₹25,000 (₹7,500) = ₹3,07,500, plus cess of ₹12,300: ₹3,19,800.

Just above ₹12 lakh: marginal relief

Taxable income ₹12,10,000 gives slab tax of ₹61,500, but marginal relief caps tax at the ₹10,000 by which income exceeds ₹12 lakh. With cess, ₹10,400.

Old versus new regime

Gross salary ₹10,00,000 with ₹1,50,000 of deductions: old regime taxable ₹8,00,000 gives ₹72,500 + cess = ₹75,400. New regime taxable ₹9,25,000 is within the rebate, so tax is nil.

How to use it

Choose the tax regime: new, old, or compare both.
Enter your gross annual income and pick your age group.
Add deductions you can claim (old regime), and keep the standard deduction and rebate limit at the FY 2026-27 defaults unless your case differs.
Review the total tax, effective rate, and take-home income, then copy, download, or print.

Questions

Is income up to ₹12 lakh tax-free in FY 2026-27?: Under the new regime, yes for most people: a rebate of up to ₹60,000 makes tax nil when total income is ₹12,00,000 or less. With the ₹75,000 standard deduction, that covers a salary of up to ₹12,75,000. The rebate does not apply to income taxed at special rates, such as some capital gains.
What are the new regime tax slabs for FY 2026-27?: Up to ₹4,00,000: nil. ₹4-8 lakh: 5%. ₹8-12 lakh: 10%. ₹12-16 lakh: 15%. ₹16-20 lakh: 20%. ₹20-24 lakh: 25%. Above ₹24 lakh: 30%. Health and education cess of 4% is added to the tax.
What are the old regime slabs?: Up to ₹2,50,000: nil (₹3,00,000 for ages 60-80 and ₹5,00,000 above 80). ₹2.5-5 lakh: 5%. ₹5-10 lakh: 20%. Above ₹10 lakh: 30%. The rebate is up to ₹12,500 when total income is ₹5,00,000 or less, and the standard deduction is ₹50,000.
What is marginal relief above ₹12 lakh?: In the new regime, if total income is just above ₹12,00,000, tax before cess cannot exceed the amount by which income exceeds ₹12,00,000. At ₹12,10,000 tax is capped at ₹10,000 instead of ₹61,500. The relief stops mattering at around ₹12.7 lakh of taxable income.
Which regime gives lower tax, new or old?: It depends on your income and deductions. The old regime can be lower only if you claim large deductions such as section 80C, 80D, home loan interest, or HRA. Choose Compare both regimes to see the total tax and take-home income under each.
Did Budget 2026 change the tax slabs?: No. Budget 2026 kept the FY 2025-26 rates, so FY 2026-27 uses the same slabs, rebate, and standard deduction. The Income-tax Act 2025 applies from 1 April 2026; it calls the year a tax year and renumbers sections, so the rebate formerly under section 87A sits in the new Act.
Is surcharge included?: Yes, when it applies. Surcharge starts above ₹50 lakh: 10% up to ₹1 crore, 15% up to ₹2 crore, and 25% above that, which is the cap in the new regime (the old regime adds 37% above ₹5 crore). Marginal relief applies at each threshold, and the 4% cess is charged on tax plus surcharge.
Is my income data sent anywhere?: No. The calculation runs entirely in your browser and nothing is uploaded.

Sources