Income Tax Slab Rates FY 2025-26 (AY 2026-27) — New & Old Regime, All Categories
For FY 2025-26 (Assessment Year 2026-27), income up to ₹4,00,000 is tax-free under the new tax regime, and taxpayers earning up to ₹12,00,000 pay zero tax after the Section 87A rebate. The new regime remains the default regime — you must actively opt for the old regime if you want to claim deductions like 80C, HRA, and 80D. Below is the complete, government-sourced breakdown for every category of taxpayer, verified against the Income Tax Department’s official portal.
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Table of Contents
Quick Facts — FY 2025-26 (AY 2026-27)
| Metric | New Regime | Old Regime |
|---|---|---|
| Basic Exemption Limit | ₹4,00,000 | ₹2,50,000 (below 60 yrs) |
| Zero Tax Limit (with 87A rebate) | ₹12,00,000 | ₹5,00,000 |
| Max Rebate u/s 87A | ₹60,000 | ₹12,500 |
| Highest Slab Rate | 30% (above ₹24,00,000) | 30% (above ₹10,00,000) |
| Deductions Allowed | Very limited (80CCD(2), 24(b) on let-out property) | Full — 80C, 80D, HRA, 24(b), etc. |
✅ New regime is the default tax regime since FY 2023-24 (Section 115BAC of the Income Tax Act, 1961). If you want to claim old-regime deductions, you must opt out — for salaried individuals this is done directly in the ITR; for those with business/professional income, Form 10-IEA must be filed on or before the due date under Section 139(1).
New Tax Regime Income Tax Slab Rates — FY 2025-26 (Same for All Ages)
Under Section 115BAC, the new regime uses the same slabs for every age group — there’s no extra benefit for senior or super senior citizens here (unlike the old regime).
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% above ₹4,00,000 |
| ₹8,00,001 – ₹12,00,000 | ₹20,000 + 10% above ₹8,00,000 |
| ₹12,00,001 – ₹16,00,000 | ₹60,000 + 15% above ₹12,00,000 |
| ₹16,00,001 – ₹20,00,000 | ₹1,20,000 + 20% above ₹16,00,000 |
| ₹20,00,001 – ₹24,00,000 | ₹2,00,000 + 25% above ₹20,00,000 |
| Above ₹24,00,000 | ₹3,00,000 + 30% above ₹24,00,000 |
💡 Rebate u/s 87A: Taxable income up to ₹12,00,000 gets a rebate of up to ₹60,000 — bringing your tax liability to zero. This rebate does not apply to special-rate income like capital gains under Section 112A.
Old Tax Regime Slab Rates — FY 2025-26
The old regime lets you claim deductions (80C, 80D, HRA, home loan interest, etc.) but the slabs are less generous. Rates vary by age.
Individuals Below 60 Years
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% above ₹2,50,000 |
| ₹5,00,001 – ₹10,00,000 | ₹12,500 + 20% above ₹5,00,000 |
| Above ₹10,00,000 | ₹1,12,500 + 30% above ₹10,00,000 |
Senior Citizens — 60 to 80 Years
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% above ₹3,00,000 |
| ₹5,00,001 – ₹10,00,000 | ₹10,000 + 20% above ₹5,00,000 |
| Above ₹10,00,000 | ₹1,10,000 + 30% above ₹10,00,000 |
Super Senior Citizens — 80 Years and Above
| Income Slab | Tax Rate |
|---|---|
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% above ₹5,00,000 |
| Above ₹10,00,000 | ₹1,00,000 + 30% above ₹10,00,000 |
📌 Rebate u/s 87A (Old Regime): Available if taxable income does not exceed ₹5,00,000, up to a maximum of ₹12,500 — effectively zero tax at or below this threshold.
Surcharge Rates on Income Tax — FY 2025-26
Surcharge is charged on your income tax amount, not on your total income, once it crosses certain thresholds. Note the important difference at the highest slab between the two regimes.
| Total Income | Surcharge — New Regime | Surcharge — Old Regime |
|---|---|---|
| Up to ₹50 Lakh | Nil | Nil |
| ₹50 Lakh – ₹1 Crore | 10% | 10% |
| ₹1 Crore – ₹2 Crore | 15% | 15% |
| ₹2 Crore – ₹5 Crore | 25% | 25% |
| Above ₹5 Crore | 25% | 37% |
⚠️ Key difference: Under the new regime, surcharge is capped at 25% even above ₹5 crore. Under the old regime, it rises to 37% above ₹5 crore. This is one of the biggest — and least talked about — advantages of the new regime for very high earners.
The enhanced 25%/37% surcharge does not apply to income taxed under Sections 111A, 112, 112A, or dividend income — surcharge on these is capped at 15%.
Health & Education Cess
A flat 4% cess is added on (Income Tax + Surcharge) under both regimes, for all taxpayers.
Marginal Relief on Surcharge
If your income just crosses a surcharge threshold (₹50L, ₹1Cr, ₹2Cr, or ₹5Cr), marginal relief ensures your total tax + surcharge doesn’t exceed the tax on the threshold amount by more than the actual excess income. In simple terms: crossing ₹50 lakh by ₹10,000 shouldn’t cost you a surcharge bill far larger than that ₹10,000.
| Income Range | Marginal Relief Rule |
|---|---|
| ₹50L – ₹1 Cr | Tax + surcharge capped at (tax on ₹50L + amount exceeding ₹50L) |
| ₹1 Cr – ₹2 Cr | Tax + surcharge capped at (tax on ₹1 Cr + amount exceeding ₹1 Cr) |
| ₹2 Cr – ₹5 Cr | Tax + surcharge capped at (tax on ₹2 Cr + amount exceeding ₹2 Cr) |
| Above ₹5 Cr | Tax + surcharge capped at (tax on ₹5 Cr + amount exceeding ₹5 Cr) |
Rebate Under Section 87A — Summary
| Regime | Income Limit | Max Rebate | Effective Tax |
|---|---|---|---|
| New Regime | Up to ₹12,00,000 | ₹60,000 | Zero tax |
| Old Regime | Up to ₹5,00,000 | ₹12,500 | Zero tax |
⚠️ 87A rebate is not available on special-rate income such as long-term capital gains under Section 112A (equity gains).
New Regime vs Old Regime — Which Should You Choose?
- Choose the new regime if you have few deductions (no home loan, minimal 80C investments) — the lower rates and ₹12L rebate ceiling generally win.
- Choose the old regime if your combined deductions (80C + HRA + 80D + home loan interest) exceed roughly ₹4–4.5 lakh — the math can tip in your favor, especially for those with a home loan and full 80C utilization.
- The only way to know for certain is to run both scenarios with your actual numbers — use our free Income Tax Calculator to compare instantly.
Frequently Asked Questions
Source: Income Tax Department, Ministry of Finance, Government of India (incometax.gov.in) — page last reviewed 19 May 2026. This article is for informational purposes; please consult a Chartered Accountant or the official portal for filing-specific guidance.
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