India Income Tax Slabs FY 2026-27 (AY 2027-28)

Reviewed on June 14, 2026 • Author: Upaman Research Team • Reviewer: Tax Policy Review Desk

Union Budget 2026 retained the individual income-tax slab structure used in the previous financial year. For FY 2026-27, the corresponding assessment year is AY 2027-28. The new regime remains the default regime, while eligible taxpayers can compare it with the old regime where applicable.

New Regime Slabs

• Up to ₹4,00,000: nil
• ₹4,00,001 to ₹8,00,000: 5%
• ₹8,00,001 to ₹12,00,000: 10%
• ₹12,00,001 to ₹16,00,000: 15%
• ₹16,00,001 to ₹20,00,000: 20%
• ₹20,00,001 to ₹24,00,000: 25%
• Above ₹24,00,000: 30%

Salaried taxpayers receive a ₹75,000 standard deduction. Section 87A can reduce tax by up to ₹60,000 when eligible taxable income does not exceed ₹12 lakh. Marginal relief may apply just above that threshold.

Old Regime Slabs

• Up to ₹2,50,000: nil
• ₹2,50,001 to ₹5,00,000: 5%
• ₹5,00,001 to ₹10,00,000: 20%
• Above ₹10,00,000: 30%

The old regime retains a ₹50,000 standard deduction for salary income and allows eligible deductions and exemptions such as 80C, 80D, NPS, HRA, and qualifying home-loan interest. Eligibility and limits vary.

How to Compare Regimes

Compare both regimes using deductions you can actually document. Do not choose the old regime based on planned investments that may not happen. Also account for the 4% health and education cess and any surcharge or special income that a simplified calculator may not model.

Official Sources and Tools

Review the Union Budget portal and Income Tax Department portal for official updates. Use Upaman’s Income Tax Calculator and Tax Regime Comparison Tool for planning scenarios.