What are the income tax slab rates under the new regime for FY 2025-26?
For FY 2025-26 (Assessment Year 2026-27), the new tax regime is the default regime for all individual taxpayers in India. You can still opt for the old regime, but you must explicitly choose it when filing your return.
New Regime Tax Slabs (FY 2025-26):
| Taxable Income | Tax Rate |
|---|---|
| Up to ā¹4,00,000 | Nil |
| ā¹4,00,001 to ā¹8,00,000 | 5% |
| ā¹8,00,001 to ā¹12,00,000 | 10% |
| ā¹12,00,001 to ā¹16,00,000 | 15% |
| ā¹16,00,001 to ā¹20,00,000 | 20% |
| ā¹20,00,001 to ā¹24,00,000 | 25% |
| Above ā¹24,00,000 | 30% |
Key highlights of the new regime:
- Standard deduction of ā¹75,000 is available for salaried individuals and pensioners.
- Tax rebate under Section 87A: If your total income does not exceed ā¹12,00,000 (after standard deduction), you pay zero tax. This effectively makes income up to ā¹12,75,000 tax-free for salaried individuals.
- A 4% Health and Education Cess is added on top of the tax calculated.
- Surcharge applies for higher incomes: 10% for ā¹50L-1Cr, 15% for ā¹1Cr-2Cr, 25% for ā¹2Cr-5Cr.
What you lose in the new regime: Most deductions and exemptions like Section 80C, 80D, HRA exemption, and LTA are not available. The only major deductions allowed are the standard deduction (ā¹75,000), employer's NPS contribution under 80CCD(2), and family pension deduction.
For most taxpayers earning under ā¹15 lakh with limited investments, the new regime works out cheaper. If you have significant 80C investments, home loan interest, and HRA claims, compare both regimes before choosing.
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