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India Income Tax Slabs — Old vs New Regime

Current India income tax slabs for both Old and New Tax Regimes, FY 2026-27 — rates, standard deduction, and Section 87A rebate thresholds at a glance.

Data as of FY 2026-27 — Reviewed annually · Updated 2026-07-19

Rates, thresholds, and slabs shown here reflect the data as of FY 2026-27 and can change with government budgets or policy updates. Always confirm current figures with an official source before making a financial decision.

Related free calculators

Income Tax Calculator

Both regimes tax income progressively — each slab's rate applies only to the portion of income within that band, not your entire income. The figures below reflect FY 2026-27; always cross-check against the Income Tax Calculator or the Old vs New Tax Regime comparison before filing, since Budget announcements can shift these figures.

Old Tax Regime Slabs

Income Slab Tax Rate
Up to Rs 2.5 lakh Nil
Rs 2.5 lakh – Rs 5 lakh 5%
Rs 5 lakh – Rs 10 lakh 20%
Above Rs 10 lakh 30%
  • Standard Deduction: Rs 50,000
  • Section 87A Rebate: Up to Rs 12,500 for net taxable income up to Rs 5 lakh (effectively zero tax at that level)
  • Deductions available: Section 80C (Rs 1.5 lakh), 80D health insurance, HRA exemption, home loan interest under Section 24B (Rs 2 lakh), NPS under 80CCD(1B), and more

New Tax Regime Slabs

Income Slab Tax Rate
Up to Rs 4 lakh Nil
Rs 4 lakh – Rs 8 lakh 5%
Rs 8 lakh – Rs 12 lakh 10%
Rs 12 lakh – Rs 16 lakh 15%
Rs 16 lakh – Rs 20 lakh 20%
Rs 20 lakh – Rs 24 lakh 25%
Above Rs 24 lakh 30%
  • Standard Deduction: Rs 75,000
  • Section 87A Rebate: Up to Rs 60,000 for net taxable income up to Rs 12 lakh (effectively zero tax at that level)
  • Deductions available: Standard deduction only — Section 80C, HRA, and most other exemptions are not available

Quick Comparison

Old Regime New Regime
Default status Opt-in only Default since FY 2023-24
Standard deduction Rs 50,000 Rs 75,000
Effective tax-free income (salaried) Up to ~Rs 5.5 lakh Up to ~Rs 12.75 lakh
Deductions Extensive (80C, HRA, 24B, etc.) Minimal

The right choice depends almost entirely on how much you claim in deductions under the Old Regime. As a rough rule of thumb: if your total Old Regime deductions exceed roughly Rs 3.75-4 lakh, the Old Regime usually wins; below that, the New Regime's lower rates and higher rebate ceiling typically come out ahead. Run both scenarios through the Income Tax Calculator with your actual numbers rather than relying on the rule of thumb alone.

Frequently Asked Questions

The New Tax Regime has been the default since FY 2023-24. If you want the Old Regime instead, you need to actively opt in by submitting Form 10-IEA or a declaration to your employer — it doesn't happen automatically.
The New Regime slabs shown here apply uniformly regardless of age. The Old Regime gives senior citizens (60-79) a higher basic exemption of Rs 3 lakh and super senior citizens (80+) Rs 5 lakh, both higher than the standard Rs 2.5 lakh — this reference page shows the standard Old Regime slab for reference; senior citizens should adjust accordingly.
Effectively yes, for most salaried taxpayers. The Section 87A rebate zeroes out tax for net taxable income up to Rs 12 lakh, and with the Rs 75,000 standard deduction added on top, salaried individuals earning up to roughly Rs 12.75 lakh gross pay no tax at all under the New Regime.
Salaried individuals with no business income can switch regimes every financial year, choosing whichever is more beneficial each time. Self-employed individuals and those with business income can switch only once — after opting back into the Old Regime, they generally cannot re-enter the New Regime unless they have no business income in a later year.
Use the [Income Tax Calculator](/income-tax-calculator-india/) to enter your actual income and deductions and see your tax liability under both regimes side by side, rather than estimating from the slab table alone.

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Old vs New Tax Regime — Full Comparison India 2026-27