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Reference Table · FY 2025-26 / AY 2026-27

India Income Tax Slabs — Old vs New Regime, AY 2026-27

The new regime taxes income across 7 slabs from 0% to 30%, with a ₹75,000 standard deduction and a Section 87A rebate that makes taxable income up to ₹12,00,000 effectively tax-free (rebate capped at ₹60,000). The old regime keeps 4 slabs and the full deduction menu. Both tables below use the exact constants that power the WOWHOW tax calculators.

Published 2026-07-16 · Author: WOWHOW · Source: Income-tax Act slabs as amended by the Finance Act (Budget 2025)

New regime slabs (default)

Applies unless you opt out. Standard deduction for salaried: ₹75,000. Section 87A rebate: slab tax cancelled up to ₹60,000 when taxable income ≤ ₹12,00,000, with marginal relief just above the threshold.

New regime income tax slabs FY 2025-26
Taxable income slabRate
Up to ₹4,00,0000%
₹4,00,000 – ₹8,00,0005%
₹8,00,000 – ₹12,00,00010%
₹12,00,000 – ₹16,00,00015%
₹16,00,000 – ₹20,00,00020%
₹20,00,000 – ₹24,00,00025%
Above ₹24,00,00030%

Old regime slabs (optional)

Standard deduction: ₹50,000. Retains Section 80C (₹1,50,000), 80D (₹25,000 base), additional NPS (₹50,000), HRA, and home-loan interest deductions.

Old regime income tax slabs FY 2025-26
Taxable income slabRate
Up to ₹2,50,0000%
₹2,50,000 – ₹5,00,0005%
₹5,00,000 – ₹10,00,00020%
Above ₹10,00,00030%

On top of slab tax

Health & Education Cess of 4% applies to the computed tax under both regimes. Surcharge applies from ₹50 lakh of income upward. Professional tax (a state levy, commonly up to ₹2,400/year) is deducted separately from salary. None of these change which slab your income falls in — they apply after the slab computation.

How this data is maintained

The slab boundaries and deduction constants on this page are imported directly from the dataset that powers the WOWHOW Income Tax Calculator, Tax Regime Wizard, and Old vs New Regime Optimizer — the tables cannot drift from what the calculators actually compute. When the Finance Act changes a figure, the dataset and this page update together. Verify against incometax.gov.in before filing.

Frequently Asked Questions

Which regime is the default for FY 2025-26?
The new regime is the default. You must actively opt for the old regime (salaried taxpayers can choose each year when filing; taxpayers with business income face restrictions on switching back). If you do nothing, your employer deducts TDS under the new regime slabs.
Is income up to ₹12 lakh really tax-free under the new regime?
Effectively yes, for taxable income up to ₹12,00,000: slab tax is computed normally, then the Section 87A rebate cancels it up to a maximum of ₹60,000. With the ₹75,000 standard deduction, a salaried person earning up to ₹12.75 lakh gross can pay zero tax. Above the threshold, marginal relief tapers the benefit rather than cutting it off vertically.
Does the old regime still make sense for anyone?
Only with heavy deductions. The old regime keeps Section 80C (up to ₹1,50,000), 80D health insurance (₹25,000 base), the extra ₹50,000 NPS deduction, HRA, and home-loan interest. As a rule of thumb, if your total deductions exceed roughly ₹4-4.5 lakh on a mid-range salary, compute both — otherwise the new regime usually wins. The WOWHOW Tax Regime Wizard runs both in 5 questions.
What is added on top of slab tax?
Health & Education Cess of 4% applies on the tax amount under both regimes. Surcharge applies at higher income levels (₹50 lakh+). Professional tax (up to ₹2,400/year in most states) is a separate state levy deducted from salary.
Where do these numbers come from?
The slab boundaries, deductions, rebate, and cess figures are the same constants that power the WOWHOW Income Tax Calculator and Tax Regime Wizard, maintained against the Income-tax Act as amended by the Finance Act (Budget 2025 for FY 2025-26 figures). Verify against incometax.gov.in before filing.

How to cite this reference

Link to this page directly: https://wowhow.cloud/research/india-income-tax-slabs-2026-27

Suggested citation: WOWHOW, "India Income Tax Slabs AY 2026-27" (July 2026). Updated in place when slab law changes.

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