A slab rate is not an effective rate
Slabs are progressive. Moving into a higher band does not apply the higher percentage to all income; it applies that rate to the portion within that band. A deduction first changes taxable income, then the slabs calculate base tax. Rebate, surcharge and health and education cess are separate steps.
Section 87A is also not a nil-rate slab. For an eligible resident individual in the new regime, it can rebate ordinary slab-rate tax when total income is within the threshold. The treatment of income taxed at special rates needs separate checking. Marginal relief near the threshold can also affect the computation.
New versus old regime
The table does not imply that one regime is universally better. The old regime can permit deductions and exemptions that are not available in the new regime, while the new regime uses wider bands and a different rebate structure. Salary, house property, capital gains, business income and eligible deductions can all affect the comparison.
The old-regime table shown here uses the below-60 basic exemption limit. Senior and super-senior treatment, residential status and other eligibility rules should be checked before using it. The linked calculator is an estimate, not a return-preparation tool.
Official sources and year labels
The primary source for 2026-27 is linked first below: Finance Bill 2026 Memorandum – no change to tax rates for individuals. The Income Tax Department reference explains the operative slab and rebate structure. From 1 April 2026, official material also uses “tax year” under the Income-tax Act, 2025; this page retains “2026-27” so readers can match the period used by the calculator and their documents.
Estimate both regimes
Enter salary and relevant deductions to compare estimated base tax under both regimes for the selected year.
Open the income-tax calculator →For worked examples, the default-regime rules and how cess and surcharge apply, read the income-tax slabs guide.