Income tax slabs for FY 2025-26 (AY 2026-27)
| New regime (default) | Rate | Old regime (below 60) | Rate |
|---|---|---|---|
| Up to ₹4 lakh | Nil | Up to ₹2.5 lakh | Nil |
| ₹4–8 lakh | 5% | ₹2.5–5 lakh | 5% |
| ₹8–12 lakh | 10% | ₹5–10 lakh | 20% |
| ₹12–16 lakh | 15% | Above ₹10 lakh | 30% |
| ₹16–20 lakh | 20% | Seniors: nil up to ₹3 lakh (60–79) or ₹5 lakh (80+) | |
| ₹20–24 lakh | 25% | ||
| Above ₹24 lakh | 30% | ||
Which regime is better?
The new regime has lower rates and a rebate that makes income up to ₹12 lakh tax-free (₹12.75 lakh for salaried people after the standard deduction), but allows very few deductions. The old regime can work out better if you claim large deductions – typically HRA, a home loan and full 80C and 80D together.
The Income-tax Act, 2025 replaces the 1961 Act from 1 April 2026 with new section numbers; the slabs above apply to income earned in FY 2025-26 (AY 2026-27).
Want an expert to check both regimes and file for you? See ITR filing.
Frequently Asked Questions
Is income up to ₹12 lakh tax-free in the new regime?
Yes, for FY 2025-26 the rebate under section 87A removes tax on taxable income up to ₹12 lakh. Salaried people also get a ₹75,000 standard deduction, so salary up to ₹12.75 lakh pays no tax.
Which deductions are allowed in the new regime?
Mainly the standard deduction for salaried people and the employer's NPS contribution under section 80CCD(2). HRA, 80C and 80D are not allowed.
Can I switch between the old and new regime?
Salaried people without business income can choose each year when filing. People with business income have limited chances to switch.
Is capital gains tax included here?
No. Capital gains are taxed at special rates. Use our capital gains calculator for them.
This calculator gives an estimate based on the rules shown above. Rates and limits change through budgets and notifications – confirm with a professional before you file or pay.