Income Tax Slab Rates for FY 2025-26 (AY 2026-27)
income tax slab rates is essential for effective financial planning. For the financial year 2025-26 (assessment year 2026-27), taxpayers need to be aware of the applicable tax rates under both the new and old tax regimes.
Income Tax Slab Rates – An Overview
- New Regime Tax Rates for FY 2025-26:
- Up to Rs.4 lakh – NIL
- Rs. 4 lakh – Rs.8 lakh – 5%
- Rs.8 lakh – Rs.12 lakh – 10%
- Rs.12 lakh – Rs.16 lakh – 15%
- Rs.16 lakh – Rs.20 lakh – 20%
- Rs.20 lakh – Rs.24 lakh – 25%
- Above Rs.24 lakh – 30%.
- New Regime Tax Rates for FY 2024-25:
- Up to Rs.3 lakh – NIL
- Rs.3 lakh – Rs.7 lakh – 5%
- Rs.7 lakh – Rs.10 lakh – 10%
- Rs.10 lakh – Rs.12 lakh – 15%
- Rs.12 lakh – Rs.15 lakh – 20%
- Above Rs.15 lakh – 30%
- Old Regime Tax Rates for FY 2025-26 and FY 2024-25:
- Up to Rs.2.5 lakh – NIL
- Rs.2.5 lakh – Rs.5 lakh – 5%
- Rs.5 lakh – Rs.10 lakh – 20%
- Above Rs. 10 lakh – 30%
Income Tax Slab Rates for Individuals and HUF for FY 2025-26 Under the New Regime
The revised tax slabs as announced in Budget 2025 for new regime are as follows:
| Income Tax Slabs | Income Tax Rates |
| Up to Rs. 4 lakh | NIL |
| Rs. 4 lakh – Rs.8 lakh | 5% |
| Rs. 8 lakh – Rs.12 lakh | 10% |
| Rs.12 lakh – Rs.16 lakh | 15% |
| Rs.16 lakh – Rs. 20 lakh | 20% |
| Rs. 20 lakh – Rs. 24 lakh | 25% |
| Above Rs. 24 lakh | 30% |
The Rebate has been increased to Rs. 60,000 from Rs. 25,000 for the FY 2025-26. With the revised tax structure, individuals earning up to Rs.12 lakhs will have no tax liability due to the increased rebate of Rs.60,000. For salaried individuals, the tax liability will be zero for incomes up to Rs.12.75 lakhs due to the Rs.75,000 standard deduction.
Note:
- The marginal relief on the rebate is still applicable.
- The rebate is not available for income that is taxed at special rates (e.g., capital gains under section 112A).
Income Tax Slab Rates for Individuals and HUF – FY 2024-25 Under the New Regime
If you’re filing your income tax return for FY 2024-25, these are the tax slabs that apply to the income earned between 1st April 2024 and 31st March 2025. The due date for filing your return is 31st July for non-audit cases and 31st October for audit cases.
| Income Tax Slabs | Tax Rates |
| Up to Rs. 3 lakh | NIL |
| Rs. 3 lakh – Rs.7 lakh | 5% |
| Rs. 7 lakh – Rs. 10 lakh | 10% |
| Rs. 10 lakh – Rs. 12 lakh | 15% |
| Rs. 12 lakh – Rs. 15 lakh | 20% |
| Above Rs. 15 lakh | 30% |
Note:
The following are the features applicable only for new regime:
- Tax rates are the same for all categories of Individuals, i.e. Individuals, Senior citizens, and Super senior citizens.
- Rebate: Tax rebate up to Rs.25,000 is applicable if the total income does not exceed Rs. 7,00,000 (not applicable for NRIs).
- Standard Deduction: Allowed for salaried employees is Rs.75,000.
- Deduction under Family Pension: Increased from Rs.15,000 to Rs.25,000.
- NPS Contribution: The deduction limit on employer’s contribution to NPS is 14% for FY 2024-25.
- Surcharge: The highest surcharge rate is 25% as opposed to 37% in the old.
- The new regime is the default tax regime.
Income Tax Slab Rates for Individuals and HUF – FY 2024-25 (Old Regime)
There were no changes made to the tax slabs under the old regime. The tax slabs under the old regime are as follows:
- Individuals less than 60 Years of Age
| Income Slabs | Income Tax Rates |
| Up to Rs. 2.5 lakh | NIL |
| Rs. 2.5 lakh – Rs. 5 lakh | 5% |
| Rs. 5 lakh – Rs. 10 lakh | 20% |
| Above Rs. 10 lakh | 30% |
- Resident Individuals Aged 60-80 Years
| Income Slabs | Income Tax Rates |
| Up to Rs. 3 lakh | NIL |
| Rs. 3 lakh – Rs. 5 lakh | 5% |
| Rs. 5 lakh – Rs. 10 lakh | 20% |
| Above Rs. 10 lakh | 30% |
- Resident Individuals Aged more than 80 Years
| Income Slabs | Income Tax Rates |
| Up to Rs. 5 lakh | NIL |
| Rs. 5 lakh – Rs. 10 lakh | 20% |
| Above Rs. 10 lakh | 30% |
Note:
- Surcharge and cess will be applicable.
- Individual residents with net taxable income less than or equal to Rs.5 lakh will be eligible for tax rebate u/s 87A under the old tax regime, i.e. tax liability will be NIL.
How to Calculate Tax Liability?
The tax liability on your taxable income is for FY 2024- 25 is calculated as follows:
Under the New Regime
| Income Slab | Tax Rate and Calculation |
| Up to Rs. 3 lakh | Nil |
| Rs. 3 lakh – Rs. 7 lakh | 5% on income above Rs. 3 lakh |
| Rs. 7 lakh – Rs. 10 lakh | Rs. 20,000 + 10% on income above Rs. 7 lakh |
| Rs. 10 lakh – Rs. 12 lakh | Rs. 50,000 + 15% on income above Rs. 10 lakh |
| Rs. 12 lakh – Rs. 15 lakh | Rs. 80,000 + 20% on income above Rs. 12 lakh |
| Above Rs. 15 lakh | Rs. 1,40,000 + 30% on income above Rs. 15 lakh |
Under the Old Regime
- Individuals less than 60 Years of Age
| Income Slabs | Tax Rate and Calculation |
| Up to Rs. 2.5 lakh | NIL |
| Rs. 2.5 lakh – Rs. 5 lakh | 5% on income above Rs. 2.5 lakh |
| Rs. 5 lakh – Rs. 10 lakh | Rs.12,500 + 20% on income above Rs. 5 lakh |
| Above Rs. 10 lakh | Rs.1,12,500 + 30% on income above Rs.10 lakh |
- Resident Individuals Aged 60-80 Years
| Income Slabs | Tax Rate and Calculation |
| Up to Rs. 3 lakh | NIL |
| Rs. 3 lakh – Rs. 5 lakh | 5% on income above Rs.3 lakh |
| Rs. 5 lakh – Rs. 10 lakh | Rs.10,000 + 20% on income above Rs. 5 lakh |
| Above Rs.10 lakh | Rs.1,10,000 + 30% on income above Rs.10 lakh |
- Resident Individuals Aged more than 80 Years
| Income Slabs | Tax Rate and Calculation |
| Up to Rs. 5 lakh | NIL |
| Rs. 5 lakh – Rs. 10 lakh | 20% on income above Rs.5 lakh |
| Above Rs.10 lakh | Rs.1,00,000 + 30% on income above Rs.10 lakh |
Note:
- Surcharge and cess will be applicable.
- Individuals with net taxable income less than or equal to Rs.5 lakh will be eligible for tax rebate u/s 87A under the old tax regime, i.e. tax liability will be NIL.
What is Surcharge?
If income exceeds a certain threshold, additional taxes must be paid over and above existing tax rates. This is an additional tax on High-Income Earners.
Surcharge rates are as below:
| Income Range | Surcharge Rate |
| Exceeds Rs. 50 lakh but does not exceed Rs. 1 crore | 10% |
| Exceeds Rs. 1 crore but does not exceed Rs. 2 crore | 15% |
| Exceeds Rs. 2 crore but does not exceed Rs. 5 crore | 25% |
| Exceeds Rs. 5 crore | 37% |
*The highest surcharge rate of 37% has been reduced to 25% under the new tax regime. (applicable from 1st April 2023)
- Surcharge rates of 25% or 37% will not apply to the income from dividends and capital gains taxable under sections 111A (Short Term Capital Gain on Shares), 112A (Long Term Capital Gain on Shares), and 115AD (Tax on the income of Foreign Institutional Investors). Therefore, the highest surcharge rate on the tax payable for such incomes will be 15%.
- The surcharge rate for an Association of Persons (AOP) consisting entirely of companies will also be limited to 15%.
- Additional Health and Education cess at the rate of 4% will be added to the income tax liability.
Comparative Analysis of Income Tax Slabs Under Old vs. New Regime
Let us understand income tax slab rates under the old regime and the new regime using the following illustrations. The following examples also explain the tax slab rates of FY 2025-26 along with FY 2024-25:
Case -1: When the Income is Rs.10 lakhs
Particulars of Income and Deductions
Salary Income: 10 lakhs
Deductions available:
- HRA – Rs.1,60,000
- LTA – Rs. 30,000
- Children Education Allowance – Rs. 9,600
- Professional Tax – Rs. 2,400
- Medical Insurance Premium – Rs. 50,000
- Education loan – Rs. 55,000
- Investment Deductions u/s 80C – Rs. 60,000
Tax Calculation Under Both the Regime for FY 2024-25
| Particulars | New Regime | Old Regime |
| Gross Salary | 10,00,000 | 10,00,000 |
| Less: Deductions | ||
| House Rent Allowance (HRA) | 1,60,000 | |
| Leave Travel Allowance (LTA) | 30,000 | |
| Children Education Allowance | 9,600 | |
| Professional Tax | 2,400 | |
| Standard Deductions | 75,000 | 50,000 |
| Taxable Salary | 9,25,000 | 7,48,000 |
| Less : Chapter VI-A deductions | ||
| Medical Insurance Premium (Section 80D) | 50,000 | |
| Education Loan (Section 80E) | 55,000 | |
| Investment Deductions u/s 80C | 60,000 | |
| Net Taxable Income | 9,25,000 | 5,83,000 |
| Net Tax payable (Including Cess) | 44,200 | 30,264 |
In the above case, the old regime has resulted in lesser tax by Rs. 13,936. Though the new-regime has provided relaxed slab rates, old regime taxation is more beneficial in this case only because of many tax saving deductions. If the deductions were lesser, the new regime slab rates could have been more beneficial.
For FY 2025-26 (AY 2026-27)
For the same net income under new regime, the taxes would be nil for FY 2025-26 since income up to Rs.12 lakhs would be practically zero taxable, owing to increased rebate and further relaxed slab rates.
Case-2: When the Income is Rs.15 lakhs
Particulars of Income and Deductions
Salary Income: 15 lakhs
Deductions available:
- HRA – Rs.1,60,000
- LTA – Rs. 30,000
- Children Education Allowance – Rs. 9,600
- Professional Tax – Rs. 2,400
- Medical Insurance Premium – Rs. 50,000
- Education loan – Rs. 55,000
- Investment Deductions u/s 80C – Rs. 60,000
Tax calculation under both the regime for FY 2024-25:
| Particulars | New Regime | Old Regime |
| Gross Salary | 15,00,000 | 15,00,000 |
| Less: Deductions | ||
| House Rent Allowance (HRA) | 1,60,000 | |
| Leave Travel Allowance (LTA) | 30,000 | |
| Children Education Allowance | 9,600 | |
| Professional Tax | 2,400 | |
| Standard Deductions | 75,000 | 50,000 |
| Taxable Salary | 14,25,000 | 12,48,000 |
| Less : Chapter VI-A deductions | ||
| Medical Insurance Premium (Section 80D) | 50,000 | |
| Education Loan (Section 80E) | 55,000 | |
| Investment Deductions u/s 80C | 60,000 | |
| Net Taxable Income | 14,25,000 | 10,83,000 |
| Net Tax payable (Including Cess) | 1,30,000 | 1,42,896 |
In the above case, the taxation under new regime is beneficial despite numerous tax saving deductions, which has primarily arisen because of relaxed slab rates. As, income increases, new regime slab rates would be more beneficial, unless we have more tax saving deductions exclusively available for taxation under old regime.
For FY 2025-26 (AY 2026-27)
For the same income and deductions under slab rates applicable for FY 2025-26, the new regime would be still more beneficial, resulting in net tax payable of Rs.97,500, as compared to Rs.1,30,000 tax of previous financial year. This, is also primarily due to further relaxed slab rates.
Understanding the tax rates under both the old and new regimes is crucial for effective financial planning. While the new regime offers simplified and lower tax rates, especially for middle-income earners, the old regime may still be beneficial for those with significant tax-saving deductions. Being aware of these options allows you to make informed decisions and optimize your tax liability based on your income and financial situation.
Can I claim 80C deductions and opt for a new income tax slab regime?
No, the new tax regime does not allow many deductions and exemptions which are otherwise available in the old tax regime. Deductions u/s 80C cannot be claimed if the taxpayer is opting for a New tax regime
What is the meaning of rebate under section 87A under the IT Act?
Section 87A provides a rebate for individual taxpayers whose income is below a specified threshold. Under the new tax regime, the limit is Rs. 7 lakh, while under the old regime, it is Rs. 5 lakh. If your income falls within these limits, your tax liability will be reduced to zero.
How much income is tax free in India?
Individual below 60 years of age are not required to pay tax upto the income limit of ₹ 2.5 Lakh under old regime. Individuals above 60 years but less than 80 years of age are not required to pay tax upto ₹ 3 lakh of income under old regime. Individuals above 80 years are not required to pay tax upto ₹ 5 lakh of income under old regime. The basic exemption limit for all the individuals under the new tax regime is ₹ 3 lakh, irrespective of age.
Do I have to mandatorily opt for a New tax regime while filing returns for AY 2025-26?
No, taxpayers have the freedom to select the tax regimes. If one needs to opt for the old regime and claim deductions, exemptions, and losses must file their income tax returns by opting out of the new regime. If the taxpayer does not opt out, the new regime is chosen as default tax regime.
Is standard deduction applicable in the new tax regime?
Yes, the standard deduction is allowed under the new tax regime for FY 2024-25.
Standard deductions is allowed against salary income. ₹75,000 deduction is available under the new tax regime and ₹50,000 is available under the old regime respectively.
What deductions are allowed in the new tax regime?
One can claim a few selective deductions under the new tax regime for FY 2024-25, such as a standard deduction of ₹75,000, interest on Home Loan u/s 24b on let-out property, employer’s contribution to NPS u/s 80CCD, Contributions to Agniveer Corpus Fund u/s 80CCH, Deduction on Family Pension Income (lower of 1/3rd of actual pension or ₹25,000).
Is HRA exemption available in new tax regime?
No, HRA exemption u/s10(13A) is not allowed in new tax regime.
Is there any changes in the new tax regime for FY 2024-25?
Yes. The new tax regime has been revised in the Budget 2024 for FY 24-25.
Can we save tax on the new tax regime?
Budget 2024 has proposed a revision in the Tax Slab for new tax regime for FY 24-25. As a result, taxpayers choosing the new tax regime stand to gain as much as ₹17,500.
What is the income tax slab for AY 2024-25 for salaried person?
The income tax slab for salaried individuals is the same as that applicable to all other assessees.
Is income up to 12 lakhs tax-free for FY 2025-26?
Yes, if your income is up to ₹ 12,00,000 in the FY 2025-26 you will have zero tax liability. For an income upto ₹4,00,000, the income earned is taxed under NIL rate. But, a rebate of ₹60,000 is allowed for an income earned up-to ₹12,00,000 because of which, the tax liability comes to NIL for an income upto ₹12,00,000.
How to calculate the age of a senior citizen for income tax?
To determine if you qualify as a senior citizen or super senior citizen for income tax purposes in India, you need to calculate your age by comparing your date of birth with the current date (April 1, 2025). If you’re 60 or older, you’re a senior citizen, and if you’re 80 or older, you’re a super senior citizen.
What are the tax slabs for Senior citizens above 60 years?
Income Tax Slabs for Individuals Aged 60 to 79 Years under the Old Regime:
- Up to Rs. 3 lakhs: Nil
- Rs. 3 lakhs to Rs. 5 lakhs: 5%
- Rs. 5 lakhs to Rs. 10 lakhs: 20%
- Above Rs. 10 lakhs: 30%
The income tax slabs under the new regime are the same for all taxpayers irrespective of their age.
What is the tax slab for Salaried Individuals under the new regime?
Under the new regime, tax rates for salaried individuals are as follows:
- Up to Rs. 3 lakhs: Nil
- Rs. 3,00,001 to Rs. 7,00,000: 5%
- Rs. 7 lakhs to Rs. 10 lakhs: 10%
- Rs. 10 lakhs to Rs. 12 lakhs: 15%
- Rs. 12 lakhs to Rs. 15 lakhs: 20%
- Above Rs. 15 lakhs: 30%
Note: The standard deduction of Rs. 75,000 is available for salaried individuals.
Which tax regime is the default?
The new tax regime is the default regime for the FY 2024-25.
Which ITR form should I use based on income slabs?
The ITR forms are not based on your tax slabs. They are based on the different sources of income and the income level. You can click here to learn about which ITR to file.