FY 2026-27 (AY 2027-28) · same slabs continue from FY 2025-26

Income Tax Slabs
FY 2026-27 & 2025-26 Guide

New regime and old regime slab rates, surcharge, cess, 87A rebate, and worked examples for every income level. ITR filing season: July 31, 2026.

Category
Income Tax & TDS
Type
Reference
Updated
Sep 2026
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◆ ZERO TAX — New Regime FY 2025-26

Section 87A provides a tax rebate of ₹60,000 for total income up to ₹12,00,000. Combined with ₹75,000 standard deduction for salaried/pensioners, effective zero tax up to ₹12,75,000 salary income.

Up to ₹4,00,000
NIL
₹0
₹4,00,001 – ₹8,00,000
5%
₹20,000
₹8,00,001 – ₹12,00,000
10%
₹40,000
₹12,00,001 – ₹16,00,000
15%
₹60,000
₹16,00,001 – ₹20,00,000
20%
₹80,000
₹20,00,001 – ₹24,00,000
25%
₹1,00,000
Above ₹24,00,000
30%
As applicable
New Regime — FY 2025-26 Default
Income SlabTax RateTax on SlabCumulative Tax
Up to ₹4,00,000NIL₹0₹0
₹4,00,001 – ₹8,00,0005%₹20,000₹20,000
₹8,00,001 – ₹12,00,00010%₹40,000₹60,000
₹12,00,001 – ₹16,00,00015%₹60,000₹1,20,000
₹16,00,001 – ₹20,00,00020%₹80,000₹2,00,000
₹20,00,001 – ₹24,00,00025%₹1,00,000₹3,00,000
Above ₹24,00,00030%30% on excess₹3,00,000 + 30%
87A Rebate (income ≤ ₹12L)−₹60,000 (full tax)₹0 net tax

◆ Standard Deduction — New Regime

₹75,000 standard deduction available for salaried employees and pensioners. This is deducted from gross salary before applying slabs. Net result: zero tax up to ₹12,75,000 gross salary.

Quick Tax Reference — New Regime

Tax by income level (with ₹75K standard deduction)
Annual IncomeTaxable Income (after ₹75K SD)Tax (before cess)Tax + 4% CessEffective Rate
₹5,00,000 ₹4,25,000 ₹1,250 (rebate: NIL) ₹0 0.0%
₹7,50,000 ₹6,75,000 ₹13,750 (rebate: NIL) ₹0 0.0%
₹10,00,000 ₹9,25,000 ₹12,500 (rebate: NIL) ₹0 0.0%
₹12,75,000 ₹12,00,000 ₹60,000 − ₹60,000 rebate ₹0 0.0%
₹15,00,000 ₹14,25,000 ₹1,33,750 ₹1,39,100 9.3%
₹20,00,000 ₹19,25,000 ₹2,93,750 ₹3,05,500 15.3%
₹30,00,000 ₹29,25,000 ₹5,67,500 ₹5,90,200 19.7%
₹50,00,000 ₹49,25,000 ₹11,77,500 ₹12,24,600 24.5%

◆ OLD REGIME — For Taxpayers with High Deductions

Old regime is beneficial only if your total deductions (80C + HRA + Home Loan + 80D + others) exceed approximately ₹3.75–5 lakh. Standard deduction is ₹50,000 under old regime.

Old Regime — FY 2025-26 By age group
Income SlabIndividual (<60 yrs)Senior Citizen (60–80)Super Senior (80+)
Up to ₹2,50,000NIL—
Up to ₹3,00,000—NIL—
Up to ₹5,00,000——NIL
₹2,50,001 – ₹5,00,0005%5% (above 3L)NIL
₹5,00,001 – ₹10,00,00020%20%20%
Above ₹10,00,00030%30%30%
87A Rebate: ₹12,500 if total income ≤ ₹5,00,000 | Standard Deduction: ₹50,000 (salaried/pensioners)

Deductions Available — Old Regime

Deductions you can claim under the old regime
SectionNatureLimit
80CPF, PPF, ELSS, LIC, NSC, Tuition Fees, Home Loan Principal₹1,50,000
80CCD(1B)NPS (additional over 80C)₹50,000
80DHealth insurance premium (self + family + parents)₹25,000–₹1,00,000
80EEducation loan interestNo limit (actual interest for 8 years)
80EEAHome loan interest (affordable housing)₹1,50,000 (additional)
80GDonations to approved institutions50% or 100% of donation
80GGHouse rent (for those not getting HRA)₹5,000/month or 25% of income
80TTASavings bank account interest₹10,000 (₹50,000 for seniors — 80TTB)
Section 24BHome loan interest (self-occupied)₹2,00,000
Section 10(13A)HRA exemptionActual as per formula
LTA (10(5))Leave travel allowanceActual (twice in 4-year block)

Surcharge is levied on income tax (not income) for high earners. Health & Education Cess at 4% applies on (tax + surcharge) for everyone.

Total IncomeNew Regime SurchargeOld Regime Surcharge
Up to ₹50,00,000NILNIL
₹50,00,001 – ₹1,00,00,00010%10%
₹1,00,00,001 – ₹2,00,00,00015%15%
₹2,00,00,001 – ₹5,00,00,00025%25%
Above ₹5,00,00,00025% (CAPPED)37%

◆ Marginal Relief on Surcharge

Marginal relief ensures that the increase in tax due to surcharge does not exceed the income exceeding the threshold. For example, if income is ₹50,10,000, surcharge is limited so additional tax does not exceed ₹10,000 (the excess over ₹50L).

Health & Education Cess

4% cess applies to all taxpayers on (income tax + surcharge). It replaces the earlier 2% Education Cess + 1% Secondary & Higher Education Cess. There is no threshold — cess applies even when income is ₹0 tax (if surcharge applies separately).

Total Tax = (Income Tax + Surcharge) × 1.04

AMT / MAT — Alternate Minimum Tax

Alternative Minimum Tax (AMT) applies at 18.5% on adjusted total income for non-corporate taxpayers who claim certain deductions (80IA, 80-IC, 80-IB, etc.) and whose regular tax is lower. Most individual salary earners are NOT affected by AMT.

Worked examples for common income levels. All examples for salaried individuals.

Example 1 — ₹10 Lakh Salary (New Regime)
Gross Salary: ₹10,00,000
New Regime Computation
Gross Salary₹10,00,000
Less: Standard Deduction−₹75,000
Taxable Income₹9,25,000
Tax Computation
0–4L @ 0%₹0
4–8L @ 5%₹20,000
8–9.25L @ 10%₹12,500
Total Tax Before Rebate₹32,500
87A Rebate (income ≤ ₹12L)−₹32,500
Tax After Rebate₹0
Total Tax Payable (New Regime) ✓₹0
Example 2 — ₹20 Lakh Salary (New vs Old Regime)
Gross Salary: ₹20,00,000 | Deductions (80C + 80D + HRA): ₹3,00,000
New Regime
Taxable Income (20L − 75K SD)₹19,25,000
Tax: 0+20K+40K+60K+66,250₹2,46,250
+ 4% Cess₹9,850
New Regime Total₹2,56,100
Old Regime
Taxable Income (20L − 50K SD − 3L ded.)₹16,50,000
Tax: 12,500+1,00,000+1,95,000₹3,07,500
+ 4% Cess₹12,300
Old Regime Total₹3,19,800
✓ New Regime Saves₹63,700
Example 3 — ₹50 Lakh Salary (New vs Old, with surcharge)
Gross Salary: ₹50,00,000 | Deductions: ₹5,00,000
New Regime
Taxable Income (50L − 75K SD)₹49,25,000
Tax on slabs₹11,77,500
Surcharge (0% since income ≤ ₹50L)*₹0
4% Cess₹47,100
New Regime Total₹12,24,600
Old Regime
Taxable Income (50L − 50K − 5L ded.)₹44,50,000
Tax: 1,12,500+10,35,000₹11,47,500
4% Cess₹45,900
Old Regime Total₹11,93,400
✓ Old Regime Saves (high deductions)₹31,200
*Taxable income ₹49.25L is below ₹50L surcharge threshold in new regime

Key Changes in Income Tax — Budget 2025

The Union Budget 2025 (presented February 1, 2025) introduced the most significant income tax reform in years:

  • New regime is now DEFAULT — Taxpayers must actively opt for Old Regime
  • Zero tax up to ₹12 lakh via enhanced 87A rebate (₹60,000 vs ₹25,000 earlier)
  • Revised slabs — Nil slab extended to ₹4L, new 25% slab added
  • Standard deduction ₹75,000 — increased from ₹50,000 (effective ₹12.75L zero-tax)
  • Old regime unchanged — Still beneficial for those with home loans, HRA, heavy 80C investments

ITR Filing Due Date — FY 2025-26

The deadline to file Income Tax Return for FY 2025-26 (AY 2026-27) is July 31, 2026 for non-audit cases. Audit cases: October 31, 2026. Late filing fee: ₹1,000 (income ≤ ₹5L) or ₹5,000 (others) under Section 234F.

Frequently Asked Questions

Is the New Regime compulsory for FY 2025-26?+
No, it is not compulsory. New Regime is the default — meaning if you do not actively opt for Old Regime, New Regime will apply. Salaried employees must inform their employer. Self-employed can opt at ITR filing time.
Can I still file under Old Regime if employer deducted TDS under New Regime?+
Yes. Salaried individuals can choose their regime when filing ITR regardless of what TDS regime the employer used. If Old Regime results in lower tax, you can claim refund of excess TDS.
What are the advance tax due dates for FY 2025-26?+
Advance tax instalments for FY 2025-26: 15% by June 15, 2025; 45% by September 15, 2025; 75% by December 15, 2025; 100% by March 15, 2026. Interest under 234B and 234C applies for shortfall.
How is income tax calculated for a freelancer in FY 2025-26?+
Freelancers with income under ₹75L can opt for presumptive taxation under Section 44ADA — 50% of gross receipts is deemed profit and taxed at slab rates. No standard deduction available for business income under New Regime. Old Regime allows actual expenses as deduction.
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Disclaimer: Slab rates and thresholds per Finance Act 2025. Figures are indicative for individual residents; actual tax may vary with exemptions, capital gains and special-rate income.

How the Income Tax Slab 2025-26 works

4 steps, start to finish — the same order the tool follows.

  1. 01Open the New Tax Regime tab to see the seven revised slabs and the 87A rebate.
  2. 02Switch to the Old Tax Regime tab for old slabs and the list of available deductions.
  3. 03Use the Surcharge and Cess tab to check high-income surcharge and the 4% cess.
  4. 04Open the Worked Examples tab to see full computations for ₹10L, ₹20L and ₹50L incomes.

Questions people ask

Short answers on Income Tax Slab 2025-26. Tap a question to open it.

01What are the New Regime slabs for FY 2025-26?

Up to ₹4L is nil, ₹4L to ₹8L is 5%, ₹8L to ₹12L is 10%, ₹12L to ₹16L is 15%, ₹16L to ₹20L is 20%, ₹20L to ₹24L is 25%, and above ₹24L is 30%.

02What are the income tax slabs under the new tax regime for FY 2025-26?

Under the new regime for FY 2025-26: 0% up to Rs 4 lakh; 5% on Rs 4-8 lakh; 10% on Rs 8-12 lakh; 15% on Rs 12-16 lakh; 20% on Rs 16-20 lakh; 25% on Rs 20-24 lakh; 30% above Rs 24 lakh. With the Section 87A rebate, no tax is payable on income up to Rs 12 lakh.

03How is tax zero up to ₹12.75L?

Salaried taxpayers get a ₹75,000 standard deduction, which brings ₹12.75L salary down to ₹12L. The Section 87A rebate of ₹60,000 then wipes out the tax on income up to ₹12L.

04What are the tax slabs under the old tax regime for FY 2025-26?

Under the old regime: 0% up to Rs 2.5 lakh (Rs 3 lakh for senior citizens); 5% on Rs 2.5-5 lakh; 20% on Rs 5-10 lakh; 30% above Rs 10 lakh. A rebate under Section 87A of up to Rs 12,500 applies if total income does not exceed Rs 5 lakh.

05What are the Old Regime slabs?

Up to ₹2.5L is nil, ₹2.5L to ₹5L is 5%, ₹5L to ₹10L is 20%, and above ₹10L is 30%. The nil limit is ₹3L for senior citizens and ₹5L for super seniors.

06Is the new tax regime the default for FY 2025-26?

Yes. The new tax regime is the default regime from FY 2023-24 onwards. Individuals must actively opt out and choose the old regime when filing their ITR or by submitting Form 10-IEA before the due date. Salaried employees must declare their choice to their employer at the start of the financial year.

07When does surcharge apply?

Surcharge applies once income crosses ₹50L: 10% up to ₹1Cr, 15% up to ₹2Cr, and 25% above that. The Old Regime can go up to 37%, while the New Regime is capped at 25%.

08What deductions are available under the new tax regime?

Under the new regime, most deductions are not available. However, standard deduction of Rs 75,000 (salary), employer NPS contribution deduction under Section 80CCD(2), family pension standard deduction of Rs 25,000, and deduction for agniveer corpus are allowed.

09What is the marginal relief provision for taxpayers near the Rs 12 lakh limit?

Marginal relief ensures that a person with income slightly above Rs 12 lakh does not pay more tax than a person earning exactly Rs 12 lakh. The excess tax payable is limited to the amount by which income exceeds Rs 12 lakh, preventing a cliff-edge tax liability.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.