Income Tax Slab Rates for FY 2025-26 (AY 2026-27)
Individuals in India are taxed on slab rates that are revised by the Finance Act each year. For FY 2025-26 (AY 2026-27) the new tax regime is the default, with a higher Rs. 4,00,000 basic exemption and a Rs. 60,000 rebate under section 87A, while the old regime continues with its familiar slabs and deductions. This page sets out both sets of rates, senior-citizen slabs, surcharge and cess, with worked examples for this filing season.
New tax regime slabs for FY 2025-26 (AY 2026-27)
These rates, announced in Budget 2025, apply to all individuals under the default new regime regardless of age. The standard deduction for salary and pension income is Rs. 75,000.
| Taxable income | Rate | Cumulative tax at upper limit |
|---|---|---|
| Up to Rs. 4,00,000 | Nil | Nil |
| Rs. 4,00,001 to Rs. 8,00,000 | 5% | Rs. 20,000 |
| Rs. 8,00,001 to Rs. 12,00,000 | 10% | Rs. 60,000 (covered by 87A rebate) |
| Rs. 12,00,001 to Rs. 16,00,000 | 15% | Rs. 1,20,000 |
| Rs. 16,00,001 to Rs. 20,00,000 | 20% | Rs. 2,00,000 |
| Rs. 20,00,001 to Rs. 24,00,000 | 25% | Rs. 3,00,000 |
| Above Rs. 24,00,000 | 30% | - |
Resident individuals with taxable income up to Rs. 12,00,000 get a section 87A rebate of up to Rs. 60,000, which cancels the entire slab tax. Income slightly above Rs. 12 lakh is protected by marginal relief, which caps the tax at the amount by which income exceeds Rs. 12 lakh, up to about Rs. 12,70,588.
Old tax regime slabs for FY 2025-26 (AY 2026-27)
The old regime must be chosen actively (salaried taxpayers can pick it in the ITR; business taxpayers need Form 10-IEA). It allows deductions such as 80C, 80D, HRA and home-loan interest, with a Rs. 50,000 standard deduction on salary.
| Taxable income | Below 60 years | 60 to 79 years (resident) | 80 years and above (resident) |
|---|---|---|---|
| Up to Rs. 2,50,000 | Nil | Nil | Nil |
| Rs. 2,50,001 to Rs. 3,00,000 | 5% | Nil | Nil |
| Rs. 3,00,001 to Rs. 5,00,000 | 5% | 5% | Nil |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% | 20% | 20% |
| Above Rs. 10,00,000 | 30% | 30% | 30% |
Old-regime resident individuals with taxable income up to Rs. 5,00,000 get an 87A rebate of up to Rs. 12,500, making such income tax-free. To weigh the two structures side by side, see old vs new tax regime or run your numbers in the income tax calculator.
Surcharge and cess for AY 2026-27
| Total income | Surcharge - new regime | Surcharge - old regime |
|---|---|---|
| Above Rs. 50 lakh up to Rs. 1 crore | 10% | 10% |
| Above Rs. 1 crore up to Rs. 2 crore | 15% | 15% |
| Above Rs. 2 crore up to Rs. 5 crore | 25% | 25% |
| Above Rs. 5 crore | 25% (capped) | 37% |
- The new regime caps surcharge at 25%, so the highest effective rate is about 39% instead of 42.74% under the old regime.
- On capital gains under sections 111A, 112 and 112A and on dividend income, surcharge cannot exceed 15% in either regime.
- Health and education cess of 4% applies on tax plus surcharge in both regimes.
- Marginal relief from surcharge is available where income just crosses Rs. 50 lakh, Rs. 1 crore, Rs. 2 crore or Rs. 5 crore.
Worked examples for FY 2025-26
Salary Rs. 9 lakh - new regime
Gross salary Rs. 9,00,000 minus standard deduction Rs. 75,000 = taxable income Rs. 8,25,000. Slab tax: Rs. 20,000 (5% slab) + Rs. 2,500 (10% slab) = Rs. 22,500. The 87A rebate wipes this out fully. Tax payable: nil.
Salary Rs. 18 lakh - new regime
Taxable income after standard deduction = Rs. 17,25,000. Tax: Rs. 20,000 + Rs. 40,000 + Rs. 60,000 + 20% of Rs. 1,25,000 (Rs. 25,000) = Rs. 1,45,000. Add 4% cess Rs. 5,800. Total: Rs. 1,50,800. No rebate, as income exceeds Rs. 12 lakh.
Senior citizen, pension Rs. 7.5 lakh
Old regime: pension Rs. 7,50,000 minus Rs. 50,000 standard deduction minus Rs. 1,50,000 under 80C = Rs. 5,50,000. Tax: Rs. 10,000 + Rs. 10,000 = Rs. 20,000 plus cess = Rs. 20,800. New regime: taxable Rs. 6,75,000, slab tax Rs. 13,750, fully covered by the 87A rebate. New regime tax: nil.
Due dates for AY 2026-27
- 31 July 2026 - individuals and HUFs not requiring audit (unless extended by CBDT).
- 31 October 2026 - taxpayers whose accounts require audit.
- 31 December 2026 - last date for belated or revised returns for AY 2026-27.
What changes from FY 2026-27 (tax year 2026-27)?
The Income-tax Act, 2025 came into force on 1 April 2026, replacing the Income-tax Act, 1961. It simplifies the language, merges "previous year" and "assessment year" into a single "tax year", and was implemented along with the Income-tax Rules, 2026 notified on 20 March 2026 - all without altering the underlying tax policy. The slab structure for tax year 2026-27 therefore continues on the same lines, subject to the annual Finance Act. Note that your current filing for FY 2025-26 is still governed by the 1961 Act.
Common mistakes
- Using old slab tables from earlier years. The Rs. 2.5/3 lakh-starting new-regime slabs of FY 2019-20 to FY 2024-25 no longer apply; the FY 2025-26 new regime starts at Rs. 4 lakh.
- Assuming Rs. 12 lakh tax-free covers capital gains. The 87A rebate excludes special-rate income such as STCG under section 111A and LTCG under section 112A.
- Applying senior-citizen exemption limits in the new regime. The higher Rs. 3 lakh / Rs. 5 lakh limits exist only in the old regime; the new regime has one Rs. 4 lakh limit for all ages.
- Forgetting the standard deduction difference. It is Rs. 75,000 in the new regime but Rs. 50,000 in the old regime.
- Ignoring surcharge above Rs. 50 lakh. Tax computed only on slabs understates liability once total income crosses Rs. 50 lakh.
Frequently asked questions
What are the income tax slabs for FY 2025-26 under the new regime?
Nil up to Rs. 4 lakh, 5% on Rs. 4-8 lakh, 10% on Rs. 8-12 lakh, 15% on Rs. 12-16 lakh, 20% on Rs. 16-20 lakh, 25% on Rs. 20-24 lakh and 30% above Rs. 24 lakh, with an 87A rebate of up to Rs. 60,000 for resident individuals up to Rs. 12 lakh.
Is income up to Rs 12 lakh tax-free in AY 2026-27?
Yes, for resident individuals in the new regime. Salaried taxpayers effectively pay zero tax up to Rs. 12,75,000 of salary thanks to the Rs. 75,000 standard deduction. Capital gains and other special-rate income remain taxable.
What are the old regime slabs for senior citizens?
Residents aged 60-79 get a Rs. 3 lakh basic exemption and residents aged 80 plus get Rs. 5 lakh. The 5% (up to Rs. 5 lakh), 20% (Rs. 5-10 lakh) and 30% (above Rs. 10 lakh) bands then apply.
What is the maximum surcharge under the new regime?
25%, even above Rs. 5 crore. The 37% surcharge survives only in the old regime, and surcharge on equity capital gains and dividends is capped at 15% in both regimes.
What is the ITR due date for AY 2026-27?
31 July 2026 for non-audit individuals, 31 October 2026 for audit cases, and 31 December 2026 for belated or revised returns, unless the CBDT extends these dates.
Will the slabs change under the Income-tax Act, 2025?
The new Act, effective 1 April 2026, rewrites the law in simpler form without changing tax policy, so the slab structure continues for tax year 2026-27 subject to each year's Finance Act.
File with expert help
Not sure which regime or slab applies to you? All India ITR's experts compute both regimes, apply the right rebate and surcharge, and file your return for you.
Related current ITR guides
More AY 2026-27 tax guides
Save tax: Home loan benefits · NPS (80CCD) · Donations (80G) · Education loan (80E) · Interest income (80TTA/80TTB) · Form 15G/15H · Capital gains exemptions (54/54F/54EC)
Investors and traders: F&O and intraday tax · ESOP and RSU tax · Share buyback tax · Foreign income and Schedule FA · Gift tax (56(2)(x)) · HUF taxation
Calculators and tools: Income tax calculator · Advance tax calculator · 80C tax-saving calculator · NPS calculator · Gratuity calculator · EPF calculator · Crypto tax calculator · HRA calculator
Filing and compliance: Section 87A rebate · Marginal relief · Form 10-IEA · PAN-Aadhaar link · AIS and TIS · ITR-U updated return · Discard ITR and condonation · TDS on rent and property · Income Tax Act 2025
Sources reviewed
- Income Tax Department: Salaried individuals for AY 2026-27 - slab rates, surcharge and deductions
- PIB, Ministry of Finance: Union Budget 2025-26 highlights - revised new regime tax structure
- PIB, Ministry of Finance: Income-tax Act, 2025 in force from 1 April 2026
Rates shown are for individual taxpayers for FY 2025-26 (AY 2026-27). Special-rate incomes, non-resident cases and entity taxation follow separate rules - verify your exact computation in the ITR utility or with an expert before filing.
