India's Income Tax Slabs for FY 2025-26 (AY 2026-27)
India’s Income Tax Slabs for FY 2025-26 (AY 2026-27), effective from April 1, 2025, feature two regimes: the default new tax regime with revised slabs and a higher rebate, and the optional old regime. These apply uniformly to individuals below 60 years across both regimes, with senior citizens getting higher exemption limits in the old regime. Taxable income up to Rs. 12 lakh is effectively tax-free in the new regime due to a Rs. 60,000 rebate under Section 87A, plus a Rs. 75,000 standard deduction for salaried individuals.
New Tax Regime Slabs
This simpler regime limits deductions but offers lower rates.
Income Range (Rs.) Tax 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%
A 4% health and education cess applies on tax liability, with surcharges for incomes above Rs. 50 lakh.
Old Tax Regime Slabs
Opt for this if you have significant deductions like HRA or 80C investments.
Income Range (Rs.) Tax Rate (Individuals <60)
Income Range (Rs.) Tax Rate (Individuals <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 years) have Nil up to Rs. 3 lakh; super seniors (80+) up to Rs. 5 lakh.
Key Reliefs
New regime: Standard deduction of Rs. 75,000 makes Rs. 12.75 lakh effectively tax-free.
No major slab changes announced in Budget 2026; focus was on tweaks like the new Income-tax Act, 2025.
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