Income Tax Slab Rates FY 2025-26 (AY 2026-27)
New Tax Regime Slab Rates (FY 2025-26 / AY 2026-27)
The new tax regime is the default regime unless you actively opt for the old one. It offers lower rates but disallows most deductions and exemptions.
| Income Range | Tax Rate |
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹6,00,000 | 5% |
| ₹6,00,001 – ₹9,00,000 | 10% |
| ₹9,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Under Section 87A, resident individuals with total taxable income up to ₹7,00,000 pay zero tax under the new regime after rebate. Salaried individuals also get a standard deduction of ₹75,000 under the new regime.
Old Tax Regime Slab Rates (FY 2025-26 / AY 2026-27)
| Income Range | Tax Rate |
| 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% |
Under the old regime, resident individuals with total taxable income up to ₹5,00,000 pay zero tax after the Section 87A rebate. The old regime allows deductions under Section 80C (₹1.5 lakh), 80D (health insurance), HRA, home loan interest, and others — but these must be actively claimed with supporting proof.
Surcharge on High Incomes
| Total Income | Surcharge |
| ₹50 lakh – ₹1 crore | 10% |
| ₹1 crore – ₹2 crore | 15% |
| ₹2 crore – ₹5 crore | 25% |
| Above ₹5 crore | 25% (new regime caps surcharge at 25%; old regime can go up to 37%) |
A 4% Health and Education Cess applies on top of income tax plus surcharge, under both regimes.
Senior Citizen and Super Senior Citizen Slabs (Old Regime Only)
The old regime provides a higher basic exemption for senior citizens: ₹3,00,000 for those aged 60-79, and ₹5,00,000 for super senior citizens (80+). The new regime's slabs are identical regardless of age.
Which Regime Should You Choose?
As a rough guide: if your total eligible deductions (80C, 80D, HRA, home loan interest, etc.) exceed roughly ₹3.5-4 lakh, the old regime usually works out cheaper; below that, the new regime typically wins. The exact breakeven shifts with your income level, so it's worth computing both scenarios against your actual numbers rather than relying on a rule of thumb — particularly in a year where your income or deduction profile has changed.
Our CA team computes your tax liability under both regimes before you file, so you always file under whichever one is genuinely cheaper for your specific numbers.