Income Tax Slabs and Rates for AY 2026-27 in India

Updated tax-rate guide for individuals, senior citizens, HUFs, NRIs, AOPs, BOIs, firms, LLPs, co-operative societies, local authorities, domestic companies and foreign companies.

Updated: 2 September 2026

New tax regime slabs for AY 2026-27

The same new-regime slab rates apply regardless of age to an individual and also apply to eligible HUFs, AOPs, BOIs and artificial juridical persons under section 115BAC.

Old tax regime - individual below 60 years

Old regime - senior and super senior citizens

Resident individual aged 60 years or more but below 80 years

Resident individual aged 80 years or more

Age-based higher basic-exemption limits apply only under the old regime to qualifying resident senior citizens. The new regime uses the same slab structure irrespective of age.

NRI, HUF, AOP, BOI and artificial juridical person

For a non-resident individual under the old regime, age-based senior-citizen thresholds do not apply; the ordinary old-regime slabs beginning with the ₹2,50,000 basic exemption apply. Under the new regime, the ₹4 lakh to ₹24 lakh slab structure shown above applies.

HUFs follow the same old-regime slabs as an individual below 60 years and the same new-regime slabs shown above. AOP/BOI taxation can be affected by whether members' shares are determinate and by the income of members, so maximum marginal rate provisions can apply in appropriate cases.

Section 87A rebate for AY 2026-27

Surcharge and Health & Education Cess

For individuals, HUFs, AOPs, BOIs and artificial juridical persons, the general surcharge structure for AY 2026-27 is:

Special restrictions cap surcharge on certain dividend and capital-gains income. Marginal relief may also apply at surcharge thresholds. Health & Education Cess is 4% of income tax plus applicable surcharge.

Income tax rates for co-operative societies

A co-operative society is not covered by the individual/HUF default regime under section 115BAC. The ordinary slab structure for a co-operative society continues to use 10%, 20% and 30% bands, subject to applicable surcharge and cess. Separate concessional regimes may apply where statutory conditions are met.

Section 115BAD provides an optional concessional regime for eligible resident co-operative societies, while section 115BAE provides a 15% concessional rate for qualifying new manufacturing co-operative societies subject to strict conditions and the statutory commencement-date requirements.

Income tax for partnership firm and LLP

A partnership firm, including an LLP, is generally taxable at 30% for AY 2026-27. Surcharge is 12% where taxable income exceeds ₹1 crore, subject to marginal relief. Health & Education Cess is 4% on tax plus surcharge.

Income tax for local authority

A local authority is taxable at 30% for AY 2026-27. Surcharge is 12% where taxable income exceeds ₹1 crore, subject to marginal relief, and Health & Education Cess is 4%.

Domestic company tax rates for AY 2026-27

For ordinary domestic companies, surcharge is generally 7% where taxable income exceeds ₹1 crore up to ₹10 crore and 12% above ₹10 crore. Companies taxed under sections 115BAA or 115BAB are generally subject to 10% surcharge. Health & Education Cess is 4%.

MAT provisions may apply to companies outside the statutory exceptions. Companies opting for sections 115BAA and 115BAB are exempt from MAT but surrender specified deductions and incentives.

Foreign company tax rates for AY 2026-27

For foreign companies, surcharge is generally 2% where taxable income exceeds ₹1 crore up to ₹10 crore and 5% above ₹10 crore. Health & Education Cess is 4%.

Tax Year 2026-27 under the Income-tax Act, 2025

From 1 April 2026, the Income-tax Act, 2025 applies to Tax Year 2026-27. Section 202 contains the default new-regime rates for individuals, HUFs, AOPs other than co-operative societies, BOIs and artificial juridical persons. The slab rates remain: nil up to ₹4 lakh; 5% from ₹4-8 lakh; 10% from ₹8-12 lakh; 15% from ₹12-16 lakh; 20% from ₹16-20 lakh; 25% from ₹20-24 lakh; and 30% above ₹24 lakh.

Official Income Tax resources

• Income Tax Department - Salaried Individuals, AY 2026-27
• Income Tax Department - Senior Citizens, AY 2026-27
• Income Tax Department - Non-Resident Individuals, AY 2026-27
• Income Tax Department - Partnership Firm / LLP, AY 2026-27
• Income Tax Department - Domestic Company, AY 2026-27
• Income Tax Department - Foreign Company, AY 2026-27
• Income Tax Department - Income-tax Act, 2025