Income Tax Slabs & Rates FY 2025-26 (AY 2026-27)
Knowing the correct income tax slab rates is the first step to accurate tax filing. Here are the complete tax rates for FY 2025-26 (AY 2026-27) under both the old and new tax regimes, along with surcharge and cess calculations.
New Tax Regime Slabs FY 2025-26
| Income Range | Tax Rate |
|---|---|
| Up to Rs 3,00,000 | Nil |
| Rs 3,00,001 – Rs 5,00,000 | 5% |
| Rs 5,00,001 – Rs 6,00,000 | 5% |
| Rs 6,00,001 – Rs 7,50,000 | 10% |
| Rs 7,50,001 – Rs 9,00,000 | 10% |
| Rs 9,00,001 – Rs 10,00,000 | 15% |
| Rs 10,00,001 – Rs 12,00,000 | 15% |
| Rs 12,00,001 – Rs 12,50,000 | 20% |
| Rs 12,50,001 – Rs 15,00,000 | 20% |
| Above Rs 15,00,000 | 30% |
Under the new regime, income up to Rs 7,00,000 is effectively tax-free due to the Section 87A rebate. No tax is payable if your total income does not exceed Rs 7 lakh.
Old Tax Regime Slabs FY 2025-26
| Income Range | Tax Rate |
|---|---|
| Up to Rs 2,50,000 | Nil |
| Rs 2,50,001 – Rs 5,00,000 | 5% |
| Rs 5,00,001 – Rs 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
Under the old regime, the Section 87A rebate provides relief of up to Rs 12,500 for taxpayers with income up to Rs 5 lakh.
Surcharge Rates for FY 2025-26
| Total Income Range | Surcharge Rate (Old & New Regime) |
|---|---|
| Up to Rs 50 lakh | Nil |
| Rs 50 lakh – Rs 1 crore | 10% |
| Rs 1 crore – Rs 2 crore | 15% |
| Rs 2 crore – Rs 5 crore | 25% |
| Above Rs 5 crore | 37% |
Health & Education Cess
A health and education cess of 4% is applicable on the total tax amount (including surcharge) under both regimes.
Section 87A Rebate Limits
| Regime | Maximum Rebate | Income Limit for Rebate |
|---|---|---|
| New Tax Regime | Rs 25,000 | Total income up to Rs 7 lakh |
| Old Tax Regime | Rs 12,500 | Total income up to Rs 5 lakh |
Tax Calculation Examples
Example 1: Income of Rs 9 Lakh (Salaried, New Regime)
| Gross Salary | Rs 9,00,000 |
| Standard Deduction | Rs 75,000 |
| Net Taxable Income | Rs 8,25,000 |
| Tax Calculation: | |
| Up to Rs 3,00,000 | Nil |
| Rs 3,00,001 – Rs 6,00,000 (5%) | Rs 15,000 |
| Rs 6,00,001 – Rs 8,25,000 (10%) | Rs 22,500 |
| Total Tax Before Cess | Rs 37,500 |
| Less: Section 87A Rebate | Not applicable (income exceeds Rs 7 lakh) |
| Add: 4% Health & Education Cess | Rs 1,500 |
| Total Tax Payable | Rs 39,000 |
Example 2: Income of Rs 6 Lakh (Salaried, Old Regime with Deductions)
| Gross Salary | Rs 6,00,000 |
| Standard Deduction | Rs 50,000 (old regime) |
| Section 80C (EPF + PPF) | Rs 1,50,000 |
| Section 80D (Health Insurance) | Rs 25,000 |
| Net Taxable Income | Rs 3,75,000 |
| Tax: 5% of (3,75,000 - 2,50,000) | Rs 6,250 |
| Less: Section 87A Rebate | Rs 6,250 |
| Net Tax | Nil |
Senior Citizens (Age 60+)
Under the old regime, senior citizens have a higher exemption limit of Rs 3,00,000 (instead of Rs 2,50,000). Very senior citizens (80+) have a Rs 5,00,000 exemption limit. Under the new regime, the slabs are the same for all age groups.
How to Compute Your Tax
Use our free income tax calculator to compute your exact tax liability under both regimes in under 30 seconds. The calculator handles:
- Salary and business income
- Capital gains
- House property income
- All deductions (80C, 80D, 80G, etc.)
- Old vs new regime comparison
Need help calculating your tax? Try our free calculator or chat with a CA