Last Updated: March 31, 2026
Income Tax Slabs FY 2025-26
Income Tax Slabs FY 2025-26 (AY 2026-27): Part of the Income Tax India 2026 : A Complete Guide
The most searched tax question in India every January to March is some version of: “What is the income tax slab for this year?”
This article gives you every slab table you need — new regime, old regime, senior citizens, and super senior citizens — along with surcharge, health and education cess, Section 156 rebate, and three worked examples showing exactly how to calculate your tax.
All rates are for FY 2025-26 (Tax Year 2026-27, Assessment Year 2026-27). Tax rates are unchanged from last year — the Income Tax Act 2025 is a structural reform only.
| Unchanged Tax rates FY 2026-27 vs FY 2025-26 | Rs 12.75L Zero tax — new regime salaried | 4% Health and Education Cess on all taxpayers | Rs 60,000 Section 156 rebate — new regime (income up to Rs 12L) |
New Tax Regime Slabs – FY 2025-26 (Tax Year 2026-27)
The new tax regime under Section 202 is the default regime from April 1, 2026. Basic exemption is Rs 4,00,000. Standard deduction for salaried employees and pensioners is Rs 75,000.
| Income Slab (Taxable Income) | Tax Rate | Tax on This Slab | Cumulative Tax |
| Up to Rs 4,00,000 | Nil | Zero | Zero |
| Rs 4,00,001 to Rs 8,00,000 | 5% | Rs 20,000 | Rs 20,000 |
| Rs 8,00,001 to Rs 12,00,000 | 10% | Rs 40,000 | Rs 60,000 |
| Rs 12,00,001 to Rs 16,00,000 | 15% | Rs 60,000 | Rs 1,20,000 |
| Rs 16,00,001 to Rs 20,00,000 | 20% | Rs 80,000 | Rs 2,00,000 |
| Rs 20,00,001 to Rs 24,00,000 | 25% | Rs 1,00,000 | Rs 3,00,000 |
| Above Rs 24,00,000 | 30% | 30% on amount above Rs 24L | Rs 3,00,000 + 30% above Rs 24L |
Section 156 rebate: If taxable income (after standard deduction) is up to Rs 12,00,000 in new regime, tax is reduced by Rs 60,000 — making effective tax zero. For salaried employees with standard deduction of Rs 75,000, effective zero-tax gross income = Rs 12,75,000.
Important: 156 rebate does NOT apply to LTCG under Section 198 (equity mutual funds, shares) or STCG under Section 196.
Old Tax Regime Slabs — FY 2025-26 (Below 60 Years)
The old tax regime continues to apply if you actively opt for it. Basic exemption is Rs 2,50,000. Standard deduction for salaried employees is Rs 50,000. All deductions (123, 126, HRA, home loan etc.) are available.
| Income Slab (Taxable Income) | Tax Rate | Tax on This Slab | Cumulative Tax |
| Up to Rs 2,50,000 | Nil | Zero | Zero |
| Rs 2,50,001 to Rs 5,00,000 | 5% | Rs 12,500 | Rs 12,500 |
| Rs 5,00,001 to Rs 10,00,000 | 20% | Rs 1,00,000 | Rs 1,12,500 |
| Above Rs 10,00,000 | 30% | 30% on amount above Rs 10L | Rs 1,12,500 + 30% above Rs 10L |
Section 156 rebate (old regime): If taxable income is up to Rs 5,00,000, tax is reduced by up to Rs 12,500 — making effective tax zero at Rs 5L income. Above Rs 5L in old regime, no 156 rebate applies.
Senior Citizen and Super Senior Citizen Slabs
Senior citizens and super senior citizens get higher basic exemption limits in the old regime. New regime basic exemption (Rs 4,00,000) is the same for all ages.
Senior Citizen (60 to 79 Years) — Old Regime Only
| Income Slab | Tax Rate | Cumulative Tax |
| Up to Rs 3,00,000 | Nil | Zero |
| Rs 3,00,001 to Rs 5,00,000 | 5% | Rs 10,000 |
| Rs 5,00,001 to Rs 10,00,000 | 20% | Rs 1,10,000 |
| Above Rs 10,00,000 | 30% | Rs 1,10,000 + 30% above Rs 10L |
Super Senior Citizen (80 Years and Above) — Old Regime Only
| Income Slab | Tax Rate | Cumulative Tax |
| Up to Rs 5,00,000 | Nil | Zero |
| Rs 5,00,001 to Rs 10,00,000 | 20% | Rs 1,00,000 |
| Above Rs 10,00,000 | 30% | Rs 1,00,000 + 30% above Rs 10L |
In new regime, basic exemption is Rs 4,00,000 for all taxpayers regardless of age. Senior citizens and super senior citizens do not get a higher basic exemption in the new regime. This is one reason some senior citizens with no deductions may find the old regime better — their Rs 3L or Rs 5L basic exemption exceeds the new regime’s Rs 4L in the Rs 80+ age bracket.
Surcharge Rates — Both Regimes
Surcharge is an additional tax on income tax. It applies only when income exceeds Rs 50 lakh. It is calculated as a percentage of your income tax (not on income directly). In the new regime, surcharge on LTCG and STCG is capped at 15%.
| Total Income Range | Surcharge Rate | Applicable To |
| Up to Rs 50,00,000 | Nil | No surcharge — all taxpayers |
| Rs 50,00,001 to Rs 1,00,00,000 | 10% | Individual, HUF, AOP, BOI |
| Rs 1,00,00,001 to Rs 2,00,00,000 | 15% | Individual, HUF, AOP, BOI |
| Rs 2,00,00,001 to Rs 5,00,00,000 | 25% | Individual, HUF, AOP, BOI |
| Above Rs 5,00,00,000 | 25% (capped in new regime) | Capped at 25% in new regime — was 37% in old regime above Rs 5Cr |
Marginal relief: if your income is just above Rs 50 lakh, the additional tax (surcharge) should not exceed the additional income over Rs 50 lakh. For example, if income is Rs 51 lakh, the extra Rs 1 lakh income should not result in surcharge greater than Rs 1 lakh. Marginal relief ensures this.
Health and Education Cess + Section 156 Rebate
Health and Education Cess – 4% on All Taxpayers
4% Health and Education Cess is added to (income tax + surcharge) for all taxpayers in both regimes. There are no exemptions. Cess = 4% x (Tax + Surcharge).
| Component | Rate | Applied On | Who Pays |
| Income Tax | Slab rates (see tables above) | Taxable income | All taxpayers above exemption limit |
| Surcharge | 10% / 15% / 25% (see table above) | Income tax amount | Only if total income exceeds Rs 50L |
| Health and Education Cess | 4% | Income Tax + Surcharge | All taxpayers — no exemption |
Section 156 Rebate — Summary
| Regime | Rebate Amount | Income Limit | Applies To |
| New Tax Regime | Rs 60,000 | Taxable income up to Rs 12,00,000 | Salary, interest income — NOT LTCG/STCG |
| Old Tax Regime | Rs 12,500 | Taxable income up to Rs 5,00,000 | Salary, interest income — NOT LTCG/STCG |
Worked Examples — Tax Calculation at Three Income Levels
Three worked examples showing how to calculate total tax including cess. All examples are for salaried individuals below 60 years of age.
Example 1 — Gross Salary Rs 12,00,000 (New Regime)
| Step | Calculation | Amount |
| Gross Salary | Rs 12,00,000 | |
| Less: Standard Deduction | Rs 75,000 (new regime) | Rs 11,25,000 taxable income |
| Tax on Rs 11,25,000 (new regime slabs) | Nil up to Rs 4L + 5% on Rs 4L = Rs 20,000 + 10% on Rs 3.25L = Rs 32,500 | Rs 52,500 |
| Less: Section 156 Rebate | Taxable income Rs 11,25,000 < Rs 12,00,000 — rebate applicable | Rs 52,500 (full rebate) |
| Tax after rebate | Zero | |
| Health and Education Cess (4%) | 4% on Rs 0 | Zero |
| Total Tax Payable | Rs 0 — Zero tax |
Example 2 — Gross Salary Rs 15,00,000 (New Regime)
| Step | Calculation | Amount |
| Gross Salary | Rs 15,00,000 | |
| Less: Standard Deduction | Rs 75,000 (new regime) | Rs 14,25,000 taxable income |
| Tax on Rs 14,25,000 (new regime slabs) | Nil up to Rs 4L + Rs 20,000 (5%) + Rs 40,000 (10%) + Rs 33,750 (15% on Rs 2.25L) | Rs 93,750 |
| Section 156 Rebate | Taxable income Rs 14,25,000 > Rs 12,00,000 — rebate NOT applicable | Nil |
| Tax before cess | Rs 93,750 | |
| Health and Education Cess (4%) | 4% on Rs 93,750 | Rs 3,750 |
| Total Tax Payable | Rs 97,500 |
Example 3 — Gross Salary Rs 10,00,000 (Old Regime with Deductions)
| Step | Calculation | Amount |
| Gross Salary | Rs 10,00,000 | |
| Less: Standard Deduction | Rs 50,000 (old regime) | Rs 9,50,000 |
| Less: Section 123 | Rs 1,50,000 (ELSS + EPF) | Rs 8,00,000 |
| Less: Section 126 | Rs 25,000 (medical insurance) | Rs 7,75,000 taxable income |
| Tax on Rs 7,75,000 (old regime) | Nil up to Rs 2.5L + Rs 12,500 (5%) + Rs 55,000 (20% on Rs 2.75L) | Rs 67,500 |
| Section 156 Rebate | Taxable income Rs 7,75,000 > Rs 5,00,000 — rebate NOT applicable | Nil |
| Health and Education Cess (4%) | 4% on Rs 67,500 | Rs 2,700 |
| Total Tax Payable | Rs 70,200 |
Compare: New regime tax on Rs 10L gross = ~Rs 45,000 (after 156 rebate). Old regime with Rs 2.25L deductions = Rs 70,200. At this deduction level, new regime is better.
Frequently Asked Questions (FAQs)
Q1: What are the income tax slabs for FY 2025-26 in the new regime?
New regime slabs for FY 2025-26 (Tax Year 2026-27): Up to Rs 4L — nil. Rs 4L to Rs 8L — 5%. Rs 8L to Rs 12L — 10%. Rs 12L to Rs 16L — 15%. Rs 16L to Rs 20L — 20%. Rs 20L to Rs 24L — 25%. Above Rs 24L — 30%. Section 156 rebate of Rs 60,000 applies if taxable income up to Rs 12L, reducing tax to zero. For salaried with Rs 75,000 standard deduction, effective zero-tax gross income = Rs 12,75,000.
Q2: What are the income tax slabs for FY 2025-26 in the old regime?
Old regime slabs for FY 2025-26 (below 60 years): Up to Rs 2,50,000 — nil. Rs 2,50,001 to Rs 5,00,000 — 5%. Rs 5,00,001 to Rs 10,00,000 — 20%. Above Rs 10,00,000 — 30%. Section 156 rebate of Rs 12,500 applies if taxable income up to Rs 5L, reducing tax to zero at that income level. Standard deduction for salaried is Rs 50,000.
Q3: Have income tax slabs changed for FY 2026-27?
No. Income tax rates and slabs for FY 2026-27 (Tax Year 2026-27) are identical to FY 2025-26. The Income Tax Act 2025, effective April 1, 2026, is a structural reform only — language simplified, sections reduced from 819 to 536. No change in tax rates, exemption limits, surcharge rates, or cess.
Q4: What is the income tax slab for senior citizens in 2026?
In the old regime: Senior citizens (60-79 years) have a basic exemption of Rs 3,00,000. Above Rs 3L: 5% up to Rs 5L, 20% up to Rs 10L, 30% above Rs 10L. Super senior citizens (80+ years) have Rs 5,00,000 basic exemption. Above Rs 5L: 20% up to Rs 10L, 30% above Rs 10L. In the new regime: basic exemption is Rs 4,00,000 for all ages — no higher exemption for senior citizens.
Q5: What is the income tax rate for salary of Rs 8 lakh in 2026?
In new regime: Gross Rs 8L minus Rs 75,000 standard deduction = Rs 7,25,000 taxable. Tax = Nil up to Rs 4L + 5% on Rs 3,25,000 = Rs 16,250. 156 rebate applies (income below Rs 12L) — full rebate, tax = zero. Health and Education Cess: zero. Total tax payable = Rs 0. In old regime: Rs 8L minus Rs 50,000 standard deduction = Rs 7,50,000. Without any other deductions, tax = Nil up to Rs 2.5L + Rs 12,500 (5%) + Rs 50,000 (20% on Rs 2.5L) = Rs 62,500 + 4% cess = Rs 65,000. New regime is significantly better at Rs 8L.
Q6: What is the income tax on Rs 12 lakh income in 2026?
In new regime for salaried: Gross Rs 12L minus Rs 75,000 standard deduction = Rs 11,25,000 taxable. Tax on Rs 11,25,000 = Rs 52,500. 156 rebate (income below Rs 12L) reduces this to zero. Total tax = Rs 0. For non-salaried with Rs 12L income and no standard deduction: taxable income = Rs 12L exactly. Tax = Rs 60,000. 156 rebate = Rs 60,000. Tax = zero. Above Rs 12,00,000 taxable income, 156 rebate is not available.
Q7: What is surcharge on income tax in India 2026?
Surcharge is additional tax on income tax for high-income taxpayers. Rates: 10% if total income Rs 50L to Rs 1Cr, 15% if Rs 1Cr to Rs 2Cr, 25% if Rs 2Cr to Rs 5Cr, 25% if above Rs 5Cr (capped in new regime — was 37% in old regime). Surcharge is added to income tax before calculating 4% cess. Surcharge on LTCG and STCG is capped at 15% in new regime. Marginal relief applies to prevent disproportionate taxation when income just crosses a surcharge threshold.
Q8: Is 156 rebate applicable on capital gains from mutual funds?
No. Section 156 rebate does NOT apply to Long Term Capital Gains (LTCG) taxed under Section 198 from equity mutual funds and shares, or to Short Term Capital Gains (STCG) taxed under Section 196. Even if your total income (including LTCG) is below Rs 12 lakh in the new regime, the LTCG portion will be taxed at 12.5% and you cannot use the 156 rebate to offset this tax. This is explicitly stated at incometaxindia.gov.in Tax Rates, footnote (b).
Conclusion
These are the complete income tax slab tables for FY 2025-26 and FY 2026-27 — both identical
The key takeaways:
- New regime zero-tax limit for salaried: Rs 12,75,000 (Rs 12L income + Rs 75K standard deduction)
- 156 rebate does NOT apply to LTCG or STCG — mutual fund investors must note this carefully
- Senior citizens get higher basic exemption only in old regime — new regime basic exemption is Rs 4L for all ages
- 4% cess applies to all taxpayers — no exemptions in either regime
To decide which regime is better for your income and deductions, read: New Tax Regime Vs Old Tax Regime 2026
For a step-by-step tax calculation at your income level: Income Tax Calculator 2026: New vs Old Regime Guide
Author
CA Ajay Khandelwal is a Chartered Accountant and financial expert with over 21 years of experience in taxation, compliance, and business advisory. As a key expert at AspirixWriters, he provides practical insights on income tax, financial planning, and regulatory matters, helping readers make informed financial decisions.
Author profile CA. Ajay Khandelwal
Disclaimer
This article is for educational and informational purposes only. All tax calculations are based on rates verified from incometaxindia.gov.in and Finance Bill 2026. Actual tax liability depends on individual circumstances, applicable surcharge, cess, deductions, and income type. Please consult your Chartered Accountant for personalised tax advice.
References
Income Tax Department — Tax Rates FY 2025-26 and Tax Year 2026-27 | New regime slabs | Old regime slabs | Section 156 rebate | Footnote (b) — 156 not applicable on LTCG/STCG | Health and Education Cess 4%
Finance Bill 2026, Bill No. 3 of 2026, Clause 2 — Income tax rates under IT Act 1961 for AY 2026-27 | First Schedule Part I-A | Individual surcharge table | Basic exemption limits for senior citizens | As introduced Lok Sabha February 1, 2026 — https://indiabudget.gov.in
Finance Act 2025 | Section 202 — New tax regime | Basic exemption Rs 4,00,000 | Standard deduction Rs 75,000 salaried and pensioners | Default regime status from April 1, 2026 — https://incometaxindia.gov.in
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