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

For FY 2025-26 (AY 2026-27), the New Regime tax slabs are: up to ₹4 Lakh: Nil; ₹4-8 Lakh: 5%; ₹8-12 Lakh: 10%; ₹12-16 Lakh: 15%; ₹16-20 Lakh: 20%; ₹20-24 Lakh: 25%; and above ₹24 Lakh: 30%. Tax rebate under Section 87A is available for taxable incomes up to ₹12 Lakh.

Which is better — new tax regime or old tax regime?

The New Tax Regime offers lower tax rates but does not allow major tax deductions like 80C, 80D, or HRA. The Old Regime offers higher tax slabs but allows these deductions. Generally, if you have high deductions (above ₹3-4 Lakh), the Old Regime might save you tax; otherwise, the New Regime is more beneficial.

What is the standard deduction for FY 2025-26?

For FY 2025-26, the standard deduction for salaried individuals is ₹75,000 under the New Tax Regime, and ₹50,000 under the Old Tax Regime. This amount is directly deducted from your gross salary before calculating taxable income.

What is the rebate under Section 87A?

Rebate under Section 87A provides complete tax relief if your taxable income stays below a certain threshold. Under the New Regime, if taxable income is ₹12 Lakh or less, the rebate covers the entire tax liability. Under the Old Regime, the rebate applies to incomes of ₹5 Lakh or less.

How is health and education cess calculated?

A flat Health and Education Cess of 4% is calculated on top of your final computed income tax liability. This applies under both the New and Old Tax Regimes and is added to the base tax.

Income Tax Calculator (FY 2025-26)

Calculate your income tax liability for Financial Year 2025-26 (Assessment Year 2026-27) under both the New and Old tax regimes. Find out which regime saves you more money based on your annual deductions.

Annual Gross Income (₹)

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Age Group

Tax Regime Choice

New Regime (FY 25-26) Old Regime

Net Tax Liability
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Taxable Income

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Standard Deduction

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Tax Before Cess

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Health & Education Cess (4%)

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Effective Tax Rate

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Calculating...

Income Tax Slabs for FY 2025-26

The Union Budget updated the slabs under the New Tax Regime, widening the slab limits to provide relief to taxpayers. Deductions are allowed only under the Old regime, except for standard deduction which applies to both.

New Tax Regime Slabs (FY 2025-26)

Up to ₹4,00,000: Nil
₹4,00,001 to ₹8,00,000: 5%
₹8,00,001 to ₹12,00,000: 10%
₹12,00,001 to ₹16,00,000: 15%
₹16,00,001 to ₹20,00,000: 20%
₹20,00,001 to ₹24,00,000: 25%
Above ₹24,00,000: 30%

Standard deduction under new regime is ₹75,000. Rebate u/s 87A is available for net taxable income up to ₹12 Lakh (no tax is paid if income ≤ ₹12L after standard deduction).

Income Tax Calculator (FY 2025-26)

Income Tax Slabs for FY 2025-26

New Tax Regime Slabs (FY 2025-26)

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