If you earn ₹15 lakh a year, your tax bill is either ₹97,500 or ₹2,57,400. Same salary, same year — the only difference is which tax regime you pick. For FY 2026-27 the new regime is the default, the slabs are unchanged from last year, and the maths is simple enough to check on one page. Here it is, with every number worked out.
Under the new regime for FY 2026-27, a ₹15 lakh salary pays ₹97,500 in tax and a ₹20 lakh salary pays ₹1,92,400 — after the ₹75,000 standard deduction and 4% cess, assuming no other deductions. A salary up to ₹12.75 lakh pays zero tax, thanks to the ₹60,000 rebate. The old regime costs ₹1,59,900 and ₹2,21,000 more.

The new-regime slabs for FY 2026-27

The new regime is the default for FY 2026-27 (1 April 2026 to 31 March 2027). Budget 2026 changed nothing — the slabs, the rebate and the standard deduction are exactly as they were in FY 2025-26. The rates apply to taxable income, which is your salary minus the standard deduction:
Up to ₹4,00,000 — nil ₹4,00,001 to ₹8,00,000 — 5% ₹8,00,001 to ₹12,00,000 — 10% ₹12,00,001 to ₹16,00,000 — 15% ₹16,00,001 to ₹20,00,000 — 20% ₹20,00,001 to ₹24,00,000 — 25% Above ₹24,00,000 — 30%
On top of the slab tax, add 4% health and education cess. Surcharge only starts above ₹50 lakh of taxable income, so it does not touch either worked example below.

The ₹12.75 lakh zero-tax line

This is the number most people get wrong. The rebate under the new regime is up to ₹60,000 when taxable income is ₹12 lakh or less. And the slab tax on exactly ₹12 lakh of taxable income is exactly ₹60,000 (₹20,000 at 5% + ₹40,000 at 10%). So the rebate wipes it out entirely.
For a salaried person, taxable income is salary minus the ₹75,000 standard deduction. A gross salary of ₹12,75,000 gives taxable income of ₹12,00,000 — slab tax ₹60,000, rebate ₹60,000, tax payable zero. Earn one rupee more and marginal relief caps the extra tax at the extra income, so there is no cliff where a small raise costs you a large tax bill.

Worked example 1: ₹15 lakh salary

Meet Rohan, 29, a salaried employee in Pune with no HRA claim and no 80C investments this year. His gross salary is ₹15,00,000.
New regime: taxable income is ₹15,00,000 minus ₹75,000 = ₹14,25,000. The slab tax builds up as ₹20,000 (₹4–8 lakh at 5%) + ₹40,000 (₹8–12 lakh at 10%) + ₹33,750 (₹12–14.25 lakh at 15%) = ₹93,750. Add 4% cess and the total is ₹97,500.
Old regime: taxable income is ₹15,00,000 minus ₹50,000 = ₹14,50,000. Slab tax is ₹12,500 (₹2.5–5 lakh at 5%) + ₹1,00,000 (₹5–10 lakh at 20%) + ₹1,35,000 (₹10–14.5 lakh at 30%) = ₹2,47,500. Add 4% cess and the total is ₹2,57,400.
The new regime saves Rohan ₹1,59,900 this year.

Worked example 2: ₹20 lakh salary

Now take Meera, 34, a salaried manager in Bengaluru, also with no deductions claimed. Her gross salary is ₹20,00,000.
New regime: taxable income is ₹20,00,000 minus ₹75,000 = ₹19,25,000. Slab tax is ₹20,000 + ₹40,000 + ₹60,000 (₹12–16 lakh at 15%) + ₹65,000 (₹16–19.25 lakh at 20%) = ₹1,85,000. Add 4% cess and the total is ₹1,92,400.
Old regime: taxable income is ₹20,00,000 minus ₹50,000 = ₹19,50,000. Slab tax is ₹12,500 + ₹1,00,000 + ₹2,85,000 (₹10–19.5 lakh at 30%) = ₹3,97,500. Add 4% cess and the total is ₹4,13,400.
The new regime saves Meera ₹2,21,000 this year.

When the old regime still wins

The examples above assume no deductions at all — no 80C, no HRA, no 80D. That is the whole story: the old regime only wins when your deductions are large enough to close the gap.
At a ₹15 lakh salary you would need more than ₹5,43,750 of deductions for the old regime to beat the new one. At ₹20 lakh you would need more than ₹7,08,333. Both figures are checked against the slab maths above. In practice that means a large HRA claim plus the full ₹1.5 lakh of 80C plus 80D health premiums — possible for some renters in metro cities, unlikely for most others. If you claim HRA, run both regimes with your real numbers before choosing; the default is not automatically the cheapest for you.

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Free income tax calculator for FY 2026-27. Enter your salary and deductions to see which regime, new or old, costs you less tax, and by how much. Calculate your numbers offline in the MYFW mobile app, export PDF reports with disclaimers, save scenarios to your 30-Day Financial Action Plan, and track your Wisdom Score improvement.

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Section 202, not 115BAC — the renumbering

One change did arrive this year, and it is only about numbering. The Income-tax Act, 2025 came into force on 1 April 2026, replacing the 1961 Act. The new regime now sits in Section 202 (it was Section 115BAC) and the rebate is Section 156 (it was Section 87A). The rates, limits and conditions are unchanged — only the section numbers moved. If a payroll slip or a CA mentions Section 202, it means the same new regime described here.

How to use the calculator

Three steps, two minutes. First, enter your gross annual salary and select the new regime. Second, add any deductions you actually claim — 80C, HRA, 80D — so the calculator can compare both regimes on your real numbers instead of the no-deduction assumption used above. Third, read the side-by-side result and pick the regime that costs less for this financial year. You can switch regimes every year when you file, so the choice is never permanent.
Is my salary really tax-free up to ₹12.75 lakh?
Does the old regime ever beat the new one?
I have no deductions at all. Which regime should I pick?
Do I still need to file a return if my tax is zero?

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Work out your own number today: enter your salary in the income tax calculator on myfinancewisdom.com and compare both regimes. Try your own numbers in the embedded tax calculator on myfinancewisdom.com. Follow @myfwindia on Instagram for the daily checklist version of this guide. Get the myfw app on Google Play — 22+ calculators in your pocket.

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Educational content only — not financial advice. Consult a SEBI-registered investment adviser for personal guidance; investments are subject to market risk.
Sources: New-regime slabs, rebate and standard deduction for FY 2026-27: CBDT / incometaxindia.gov.in tax reference tables; PIB release "No income tax on annual income up to ₹12 lakh"; CAclubindia "New Tax Regime 2026-27" (Sep 2026); TaxGuru Section 202 vs 115BAC explainer (Oct 2026). Worked-example maths checked by script, 6 Nov 2026. Assumptions: salary income only, resident individual under 60, no 80C/HRA/80D deductions, no surcharge.