Income Tax Slabs FY 2025-26 (AY 2026-27): Old & New Regime Rates
Last verified: June 2026, against the Income Tax Act and Budget 2025 provisions cited below. Figures apply to FY 2025-26 (AY 2026-27). General information, not personal tax advice.
Your income tax depends on two things: which regime you choose and which slab your income falls in. For FY 2025-26 (AY 2026-27) the new regime is the default and now leaves income up to ₹12 lakh tax-free. Here are the full slab tables for both regimes, side by side, with worked examples.
New regime slabs (FY 2025-26) — the default
| Taxable income | 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% |
With the Section 87A rebate, income up to ₹12 lakh is effectively tax-free (₹12.75 lakh for salaried, after the ₹75,000 standard deduction).
Old regime slabs (FY 2025-26)
| Taxable income | Rate (below 60) |
|---|---|
| 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% |
Senior citizens (60–80) get a higher basic exemption of ₹3,00,000, and super seniors (80+) ₹5,00,000, under the old regime. The old regime allows deductions like 80C, 80D, HRA and home-loan interest; the 87A rebate covers income up to ₹5 lakh.
On top of the slab tax
Both regimes add a 4% health and education cess, plus a surcharge if your income exceeds ₹50 lakh. Use our income tax calculator to compute the final figure.
Worked example: ₹15 lakh salary
New regime: taxable ₹14.25 lakh (after ₹75k standard deduction). Tax ≈ ₹93,750 + 4% cess. Old regime: depends heavily on your deductions — with ₹1.5 lakh 80C, ₹2 lakh home-loan interest and other claims, it can be competitive. The right choice turns on how many deductions you actually use; compare in old vs new tax regime.
FAQs
What is the basic exemption under the new regime?
₹4 lakh for FY 2025-26 — income below this is not taxed at all.
Which regime is the default?
The new regime. You must actively opt for the old regime each year if you prefer it.
Is income up to ₹12 lakh really tax-free?
Under the new regime, yes, via the 87A rebate — but only for slab-rate income, not special-rate income like equity capital gains.
Do seniors get higher exemption in the new regime?
No. The higher age-based exemptions (₹3 lakh/₹5 lakh) apply only under the old regime.
