Income Tax Rates for AY 2026-27: New vs Old Regime Compared with AY 2025-26

Quick Refresher: New vs Old Regime for AY 2026-27

Feature	New Regime	Old Regime
Lower tax rates	✅	❌
Deductions allowed (80C, 80D, HRA, etc.)	❌	✅
Standard deduction	✅ (₹75,000)	✅ (₹50,000)
Rebate under section 87A	✅ up to ₹12.75L	✅ up to ₹5L

Tax Rates – AY 2026-27 (FY 2025-26)

New Tax Regime Slabs

Applicable to Individuals, HUFs (including salaried and non-salaried):

Income Slab (₹)	Tax Rate (%)
Up to 4,00,000	NIL
4,00,001 – 8,00,000	5%
8,00,001 – 12,00,000	10%
12,00,001 – 16,00,000	15%
16,00,001 – 20,00,000	20%
20,00,001 – 24,00,000	25%
Above 24,00,000	30%

✅ Standard Deduction of ₹75,000 available
✅ Rebate under 87A available up to ₹12.00L taxable income
🚫 No deductions under 80C, 80D, HRA, LTA, etc.

Old Tax Regime (For FY 2025–26 / AY 2026–27)

Income Slab (₹)	Tax Rate
Up to ₹2,50,000	NIL
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

✅ Standard Deduction: ₹50,000
✅ All deductions and exemptions (80C, 80D, HRA, LTA, etc.) available
✅ Rebate under Section 87A: Available up to ₹5 lakh taxable income

Comparison with AY 2025-26 (FY 2024-25)

Income Tax Slabs for FY 2024-25 (AY 2025-26) Under New Regime

Income Range	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%

Income Tax Slabs for AY 2025-26 (Under the Old Tax Regime)

Income Range	Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 to ₹5,00,000	5%
₹5,00,001 to ₹10,00,000	20%
Above ₹10,00,000	30%