Income Tax
Income Tax Slabs FY 2025-26: New vs Old Regime Rates & Rebate Explained
Every salaried Indian asks the same question in March: how much tax will I actually pay? The answer depends on your regime, the rebate, and a few surcharge thresholds most people never hear about. Here are the FY 2025-26 slabs laid out plainly for both regimes.
New regime slabs (default)
The new regime is now the default. Its slabs are wider and rates lower, but it removes most deductions:
| Income slab | Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Old regime slabs
The old regime keeps higher rates but lets you claim deductions like 80C, 80D and HRA:
| Income slab | 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% |
The 87A rebate: tax-free up to ₹7 lakh
Under the new regime, a Section 87A rebate wipes out tax entirely for taxable income up to ₹7 lakh. With the ₹50,000 standard deduction, a salaried person earning up to about ₹7.5 lakh can effectively pay zero tax. The old regime's rebate covers income up to ₹5 lakh.
Standard deduction, surcharge and cess
- Standard deduction: ₹50,000 for salaried taxpayers (₹75,000 under the new regime).
- Surcharge: kicks in above ₹50 lakh income, rising in slabs; the new regime caps the top surcharge at 25%.
- Health & education cess: 4% on tax plus surcharge, in both regimes.
Which regime should you pick?
If your deductions (80C + 80D + HRA + home-loan interest) are large, the old regime often wins; if you claim little, the new regime usually does. Don't guess — run your exact numbers through our income tax calculator and read the deeper old vs new regime comparison before you lock your choice for the year. Ready to file? See ITR filing services.