New vs Old Tax Regime for FY 2026-27: Slabs and a Simple Way to Choose
New regime slabs (nil up to ₹12 lakh with rebate), old regime slabs, standard deduction, and how to compare quickly.
New tax regime (default)
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | 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% |
- Standard deduction for salaried: ₹75,000.
- Rebate (Section 87A) up to ₹60,000 makes tax nil if taxable income is up to ₹12 lakh — so a salaried person earning up to about ₹12.75 lakh pays no tax.
Old tax regime
| Taxable income | Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5–5 lakh | 5% |
| ₹5–10 lakh | 20% |
| Above ₹10 lakh | 30% |
The old regime allows deductions such as 80C (₹1.5 lakh), 80D, HRA and home-loan interest, with a ₹50,000 standard deduction for salaried. Tax is nil up to ₹5 lakh taxable income due to the rebate.
How to choose
If your total deductions are small, the new regime is almost always lower. If you claim large HRA, 80C, 80D and home-loan interest, compare both. 4% cess applies in both.
🛠️ Compare both regimes for your salary →This is a simplified summary for resident individuals below 60, without surcharge. Verify with the Income Tax Department (incometax.gov.in) or a tax professional before filing.