Income Tax Slabs India 2026
An interactive reference comparing tax rates and slabs under the Old Tax Regime and New Tax Regime for FY 2025-26 and 2026. Use this to determine your regime choice.
How to Read Indian Income Tax Slabs & Choose Your Regime
This reference guide outlines the official income tax brackets under India's New Tax Regime (default) and Old Tax Regime for FY 2025–26 (AY 2026–27). Income tax in India is computed progressively on marginal slabs rather than as a single flat percentage on your entire annual package.
What the Tables Show
The New Regime offers lower progressive slab rates (5% to 30%) with an increased ₹75,000 standard deduction and Section 87A rebate for net taxable income up to ₹7,00,000 (effective zero tax up to ₹7.75L). The Old Regime retains higher slab rates (up to 30% above ₹10L) but allows Section 80C, 80D, HRA, and home loan interest deductions.
Worked Example (₹10 Lakh Salary)
Under the New Regime on ₹10,00,000 gross income: standard deduction reduces taxable pay to ₹9,25,000. Slabs: ₹0–₹3L @ Nil (₹0); ₹3L–₹7L @ 5% (₹20,000); ₹7L–₹9.25L @ 10% (₹22,500). Total tax = ₹42,500 + 4% cess = ₹44,200. Compare this against your deductions to decide the best regime.
New Tax Regime Slabs
| Income Slabs | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹7,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
*Note: Under the New Regime, standard deduction has been increased to ₹75,000. Rebate is available up to taxable income of ₹7 Lakh (meaning net zero tax payable for salary up to ₹7.75 Lakh after standard deduction).
Old Tax Regime Slabs
| Income Slabs | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
*Note: Under the Old Regime, standard deduction is ₹50,000. Exemptions like Section 80C (up to ₹1.5 Lakh), Section 80D (up to ₹25,000), HRA, and Section 24b home loan interest are allowed.
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Need a Tax Estimation?
Compare both regimes using your exact salary parameters (CTC, deductions, allowances) to identify the best regime for you.
Income Tax CalculatorHow to Calculate Tax Using These Slabs — Worked Example
Let's calculate the income tax on a salary of ₹12,00,000 (₹12 Lakh) under both regimes for FY 2025-26 to understand how to read these slabs.
New Regime — ₹12 Lakh Income
After ₹75,000 standard deduction → Taxable income: ₹11,25,000
- ₹0–3L: Nil = ₹0
- ₹3L–7L: 5% on ₹4L = ₹20,000
- ₹7L–10L: 10% on ₹3L = ₹30,000
- ₹10L–11.25L: 15% on ₹1.25L = ₹18,750
- Total Tax: ₹68,750 + 4% Cess = ₹71,500
Old Regime — ₹12 Lakh Income
After ₹50,000 std deduction + 80C ₹1.5L = Taxable: ₹10,00,000
- ₹0–2.5L: Nil = ₹0
- ₹2.5L–5L: 5% on ₹2.5L = ₹12,500
- ₹5L–10L: 20% on ₹5L = ₹1,00,000
- Total Tax: ₹1,12,500 + 4% Cess = ₹1,17,000
In this example, the New Regime saves ₹45,500. This changes if you have higher deductions — use our Income Tax Calculator to model your exact situation.
Which Tax Regime Should You Choose?
The New Tax Regime is generally better if your total eligible deductions are below ₹3.75 lakh. The Old Regime becomes advantageous when your deductions — Section 80C (up to ₹1.5L), Section 80D (health insurance), HRA, home loan interest (Section 24(b)), and NPS (Section 80CCD(2)) — significantly reduce your taxable income.
✓ Choose New Regime if:
- You have minimal deductions or investments
- Your HRA exemption is low or zero (own house / company accommodation)
- You prefer simpler ITR filing without tracking deductions
- Your income is below ₹7L (full rebate under Sec 87A in New Regime)
✓ Choose Old Regime if:
- You maximise Section 80C (PPF, ELSS, LIC) = ₹1.5L
- You pay significant house rent and claim HRA
- You have home loan interest deduction above ₹2L
- You pay NPS and claim 80CCD(1B) ₹50,000 extra
Surcharge Rates for High Earners & Marginal Relief Rules
If your total income exceeds ₹50 Lakh in a financial year, a surcharge is levied on your total income tax payable. Under the New Tax Regime, the maximum surcharge rate is capped at 25% (down from 37% in earlier years under the Old Regime).
₹50L to ₹1 Crore
10% Surcharge
Applied on income tax
₹1 Cr to ₹2 Crore
15% Surcharge
Applied on income tax
Above ₹2 Crore
25% Surcharge
Capped at 25% in New Regime
Marginal relief ensures that the extra tax (including surcharge) payable does not exceed the extra income earned above the ₹50L, ₹1Cr, or ₹2Cr thresholds.
Key Terms Explained
Standard Deduction
A flat deduction available to all salaried taxpayers — ₹50,000 in Old Regime and ₹75,000 in New Regime (from FY 2024-25 onwards).
Section 87A Rebate
If your total taxable income does not exceed ₹5L (Old) or ₹7L (New), your income tax liability becomes zero due to this rebate — effectively meaning no tax is payable.
Surcharge
An additional tax on high-income individuals. Applicable above ₹50L income. Rate ranges from 10% to 25% of income tax depending on income level.
Health & Education Cess
A 4% cess is applied on the total income tax (including surcharge). This goes toward funding health and education programmes.
Frequently Asked Questions — Income Tax Slabs 2026
What are the income tax slabs under the New Tax Regime for FY 2025-26?
Under the New Tax Regime for FY 2025-26, the slabs are: Nil up to ₹3 lakh; 5% from ₹3–7 lakh; 10% from ₹7–10 lakh; 15% from ₹10–12 lakh; 20% from ₹12–15 lakh; and 30% above ₹15 lakh. A standard deduction of ₹75,000 is also available.
What is Section 87A tax rebate and who is eligible?
Section 87A provides a full tax rebate if your total taxable income does not exceed the specified limit. Under the New Regime for FY 2025-26, individuals with income up to ₹7 lakh get a full rebate, effectively paying zero income tax. Under the Old Regime, the rebate applies up to ₹5 lakh taxable income. This means you owe nil tax even if your gross income exceeds these limits — provided it falls within the threshold after eligible deductions.
Is the New Tax Regime mandatory from FY 2025-26?
No, the New Tax Regime is not mandatory — it is the default regime. Salaried individuals and HUFs can still opt for the Old Tax Regime when filing their ITR, provided they do so before the due date. Self-employed professionals and business owners can opt for the Old Regime once per year (except if they have business income, in which case switching is restricted). It's advisable to compare your tax liability under both regimes before filing.
How does the standard deduction differ between Old and New Tax Regime?
The standard deduction for salaried employees is ₹50,000 under the Old Tax Regime and ₹75,000 under the New Tax Regime (effective from FY 2024-25 onwards). Pensioners also get the ₹75,000 standard deduction under the New Regime. This flat deduction reduces your taxable salary income before applying slab rates — no bills or proof of expense are required.
What is marginal relief and when does it apply?
Marginal relief prevents situations where paying tax results in a net income lower than what you'd have had if your income were slightly less. For example, if your income slightly exceeds ₹7 lakh under the New Regime (where the 87A rebate cuts off), marginal relief ensures that the extra tax payable does not exceed the extra income earned over ₹7 lakh. This applies near all tax slab and rebate boundaries.
Which income tax regime is better — New or Old — for a ₹10 Lakh salary?
For a ₹10 lakh CTC with minimal deductions, the New Regime is usually better. After ₹75,000 standard deduction, taxable income is ₹9.25 lakh — resulting in tax of approximately ₹67,500 (+ 4% cess = ~₹70,200). Under the Old Regime (with ₹50,000 std deduction + 80C ₹1.5L), taxable income is ₹8 lakh — tax of ₹75,000 (+ cess = ₹78,000). The Old Regime becomes better once total eligible deductions cross approximately ₹3.75 lakh. Use our Income Tax Calculator to model your specific deductions.