Income Tax Calculator FY 2026-27 (New Regime): Slabs, ₹12 Lakh Rebate and Take-Home
Income tax under the new regime for FY 2026-27 (also valid for FY 2025-26): slabs from nil to 30%, ₹75,000 standard deduction, ₹60,000 rebate up to ₹12 lakh with marginal relief, employer NPS, family pension, surcharge with marginal relief and 4% cess, plus monthly TDS and take-home.
How it works
taxable income = salary + other income − ₹75,000 standard deduction (salaried) − family pension deduction (⅓, max ₹25,000) − employer NPS 80CCD(2) · slabs: 0–4L nil, 4–8L 5%, 8–12L 10%, 12–16L 15%, 16–20L 20%, 20–24L 25%, above 24L 30% · rebate: up to ₹60,000 if taxable ≤ ₹12L; above that, tax ≤ income over ₹12L (marginal relief) · surcharge 10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr (with marginal relief) · + 4% cess on tax + surcharge
The new tax regime is the default for individuals. Budget 2025 set its slabs at nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% in ₹4 lakh steps, and 30% above ₹24 lakh. Budget 2026 left the slabs, the ₹75,000 standard deduction and the rebate unchanged for FY 2026-27, the first year under the new Income-tax Act, 2025, so the same numbers work for FY 2025-26 and FY 2026-27. A rebate of up to ₹60,000 wipes out the tax when taxable income is ₹12 lakh or less, so a salaried person earning up to ₹12.75 lakh pays nothing. Just above ₹12 lakh, marginal relief caps the tax at the income above ₹12 lakh, so the full slab tax only applies from about ₹12.71 lakh of taxable income. The rebate cannot be used against special-rate income such as capital gains. The regime allows almost no deductions: no 80C, 80D, HRA or home-loan interest on a self-occupied home. The standard deduction, the family pension deduction and the employer's NPS contribution under 80CCD(2) (up to 14% of basic + DA) still apply. Above ₹50 lakh a surcharge of 10%, 15% or 25% is added, with marginal relief at each threshold, and a 4% health and education cess sits on top of everything.
Worked example
Salary ₹15,00,000, no other income: taxable income = ₹15,00,000 − ₹75,000 = ₹14,25,000. Slab tax = ₹20,000 (5% of ₹4L) + ₹40,000 (10% of ₹4L) + ₹33,750 (15% of ₹2.25L) = ₹93,750. No rebate above ₹12 lakh and no surcharge below ₹50 lakh. Cess 4% = ₹3,750, so the total tax is ₹97,500 a year, about ₹8,125 a month, 6.50% of the salary, and the take-home before PF is about ₹1,16,875 a month.
Sources: ClearTax: Income tax slabs FY 2025-26 and FY 2026-27 · Storyboard18: Budget 2026, no change in tax rates; rebate continues up to ₹12 lakh
Frequently asked questions
Is income up to ₹12 lakh tax-free in FY 2026-27?
Yes under the new regime, for taxable income up to ₹12 lakh (₹12.75 lakh of salary after the ₹75,000 standard deduction), through the ₹60,000 rebate. It does not cover special-rate income such as capital gains, which stays taxable.
What is marginal relief above ₹12 lakh?
Without it, earning ₹1 over ₹12 lakh would cost about ₹60,000 of tax. Marginal relief limits the tax to the income above ₹12 lakh: at ₹12.1 lakh taxable, the tax is ₹10,000 plus cess (₹10,400) instead of ₹61,500 plus cess.
Did Budget 2026 change the new-regime slabs?
No. Budget 2026 kept the FY 2025-26 slabs, the ₹75,000 standard deduction and the ₹12 lakh rebate limit for FY 2026-27. The main change was the move from the Income-tax Act, 1961 to the Income-tax Act, 2025 from 1 April 2026.
Which deductions are allowed in the new regime?
The ₹75,000 standard deduction for salary and pension, the family pension deduction (one-third, up to ₹25,000), the employer's NPS contribution under 80CCD(2) up to 14% of basic + DA, and a few others such as Agniveer corpus contributions. 80C, 80D, HRA and LTA are not allowed.
Should I switch to the old regime?
Only if your deductions are large: roughly ₹4–8 lakh or more of 80C, 80D, HRA and home-loan interest, depending on your income. Compare both with the old vs new regime calculator before you file.
Are EPF and professional tax included?
No. Your EPF contribution comes out of salary but is not tax, and professional tax is not deductible in the new regime. Both reduce take-home separately from the figures here.
Related calculators
Uses the new tax regime for FY 2026-27 (tax year 2026-27 under the Income-tax Act, 2025), which keeps the FY 2025-26 slabs, ₹75,000 standard deduction, ₹60,000 rebate up to ₹12 lakh, surcharge and 4% cess unchanged after Budget 2026. Special-rate income such as capital gains is not included. Educational estimate, not tax advice; confirm with the Income Tax Department or a chartered accountant.