New Tax Regime Slabs for FY 2026-27: Complete Guide
Quick Answer
For FY 2026-27, the New Tax Regime offers zero tax for income up to ₹12 lakh (₹12.75L for salaried individuals after standard deduction). Slabs start from 5% for income above ₹3L and go up to 30% for income above ₹15L.
What is the New Tax Regime in 2026?
The New Tax Regime, introduced under Section 115BAC, has become the default tax system for Indian individuals. For Financial Year 2026-27, it offers significantly lower tax rates and wider slabs compared to the Old Regime, but at the cost of giving up most deductions like 80C, 80D, and HRA.
The most significant highlight is the effectively tax-free income up to ₹12 lakh due to the Section 87A rebate and a hiked standard deduction of ₹75,000 for salaried employees.
New Tax Slabs for FY 2026-27 (AY 2027-28)
The following slabs apply to all individuals, including senior citizens, under the New Regime:
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹7,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
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