Understanding income tax slabs is the first step to planning your taxes. For FY 2025-26 (Assessment Year 2026-27), India has two tax regimes — New and Old. Here is everything you need to know.
New Tax Regime Slabs FY 2025-26 (Default)
The New Regime is now the default. You must explicitly opt for the Old Regime when filing your ITR.
| Income Slab | Tax Rate | Tax on Slab |
|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹60,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | ₹80,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | ₹1,00,000 |
| Above ₹24,00,000 | 30% | On balance |
Under the New Regime, if your taxable income (after ₹75,000 standard deduction) is up to ₹7 lakh, you pay zero tax due to the Section 87A rebate. This means a gross salary of up to ₹7.75 lakh is effectively tax-free.
Old Tax Regime Slabs FY 2025-26
| Income Slab | Below 60 Yrs | 60-80 Yrs (Senior) | Above 80 Yrs |
|---|---|---|---|
| Up to ₹2.5L / ₹3L / ₹5L | 0% | 0% | 0% |
| ₹2.5L – ₹5L | 5% | 5% | 0% |
| ₹5L – ₹10L | 20% | 20% | 20% |
| Above ₹10L | 30% | 30% | 30% |
Surcharge — For High Incomes
Surcharge is an additional tax on top of income tax for high earners:
| Taxable Income | Surcharge Rate |
|---|---|
| Up to ₹50 Lakh | Nil |
| ₹50L – ₹1 Crore | 10% |
| ₹1 Crore – ₹2 Crore | 15% |
| ₹2 Crore – ₹5 Crore | 25% |
| Above ₹5 Crore | 37% |
Note: In the New Regime, surcharge is capped at 25% even for income above ₹5 crore — a benefit over the Old Regime.
Health and Education Cess — 4% on Everyone
After calculating income tax and surcharge, 4% Health and Education Cess is added to the total. This applies to everyone regardless of income level.
Worked Examples
₹6 Lakh Salary (New Regime)
Gross ₹6L → Standard deduction ₹75K → Taxable ₹5.25L → Tax = 5% of ₹1.25L = ₹6,250 → 87A rebate applies → Tax payable: ₹0
₹10 Lakh Salary (New Regime)
Gross ₹10L → Standard deduction ₹75K → Taxable ₹9.25L → Tax = ₹20K + 10% of ₹1.25L = ₹32,500 → No 87A rebate → Add 4% cess → Tax payable: ₹33,800
₹15 Lakh Salary (New Regime)
Gross ₹15L → Standard deduction ₹75K → Taxable ₹14.25L → Tax = ₹60K + ₹40K + ₹20K + 15% of ₹2.25L = ₹1,53,750 → Add 4% cess → Tax payable: ₹1,59,900
₹20 Lakh Salary (New Regime)
Taxable ₹19.25L → Tax = ₹3,00,000 + 20% of ₹3.25L = ₹3,65,000 → Add 4% cess → Tax payable: ₹3,79,600
🧾 Get Your Exact Tax in Seconds
Use TurboX Income Tax Calculator for FY 2025-26 and FY 2026-27 — with Old vs New Regime comparison, all deductions and 87A rebate built in.
Calculate My Tax →FY 2026-27 New Regime — Big Change
In Budget 2025, the government made a significant announcement for FY 2026-27: the 87A rebate limit under the New Regime increases to ₹12 lakh. This means income up to approximately ₹12.75 lakh will be completely tax-free (after ₹75K standard deduction) under the New Regime from FY 2026-27 onwards.