Income tax slabs for FY 2026-27
Slabs are marginal: each rate applies only to the income inside its band, never to your whole salary. That single misunderstanding causes most of the panic about crossing a threshold.
Apply the slabs to my salaryWhat it means
The new regime runs nil to ₹4,00,000, then 5% to ₹8,00,000, 10% to ₹12,00,000, 15% to ₹16,00,000, 20% to ₹20,00,000, 25% to ₹24,00,000, and 30% above. The old regime runs nil to ₹2,50,000, 5% to ₹5,00,000, 20% to ₹10,00,000, and 30% above.
The formula
Tax = Σ (income within each band × that band's rate)
Surcharge applies above ₹50 lakh total income at 10%, 15% and 25% thresholds with marginal relief, and a 4% health and education cess applies to tax plus surcharge in both regimes.
Worked example
- Taxable ₹9,00,000 in the new regime: nil on the first ₹4L, 5% on the next ₹4L = ₹20,000, 10% on the last ₹1L = ₹10,000.
- Total ₹30,000 before cess — not 10% of ₹9,00,000.
- Cess adds ₹1,200, giving ₹31,200.
How to use it
- 1Find your taxable income. Gross salary minus the standard deduction and any eligible deductions.
- 2Apply each band in turn. Only the income inside a band attracts that band's rate.
- 3Add cess, check rebate and surcharge. The calculator prints each step separately.
Frequently asked questions
Do I pay 30% on my entire salary in the top slab?
No. Slabs are marginal — 30% applies only to income above the threshold. Your effective rate on total income is always lower than your top slab rate.
What is the basic exemption limit for FY 2026-27?
₹4,00,000 under the new regime and ₹2,50,000 under the old regime for taxpayers below 60. Senior and super-senior citizens have higher limits in the old regime.
When does surcharge apply?
Above ₹50 lakh of total income, at rising rates with marginal relief so that the surcharge never exceeds the income that crossed the threshold.
Related tools & guides
Calculations on this site are based on official government provisions and should be verified against the latest government publications (incometax.gov.in).