Income Tax Slabs FY 2025-26 (AY 2026-27)
New Tax Regime (Default)
| Taxable Income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Old Tax Regime (Below 60 years)
| Taxable Income | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Section 87A Rebate FY 2025-26
Rebate Limits
Salaried example: Gross salary of ₹12,75,000 with ₹75,000 standard deduction → taxable income ₹12,00,000 → tax ₹60,000 wiped by 87A rebate → ₹0 tax.
Marginal Relief Explained
If taxable income marginally exceeds ₹12,00,000, marginal relief caps the tax at the amount by which income exceeds the threshold:
Marginal Relief = Tax before cess − (Taxable Income − ₹12,00,000)
Example: Taxable income ₹12,19,740 → excess = ₹19,740 → tax restricted to ₹19,740 + 4% cess = ₹20,530.
Health & Education Cess & Surcharge
Cess: 4% on income tax plus surcharge. Surcharge: 10% (₹50L–₹1Cr), 15% (₹1Cr–₹2Cr), 25% (above ₹2Cr). Under the new regime, surcharge is capped at 25%.
How to Use This Income Tax Calculator
- Enter your gross annual income (salary, interest, rent, etc.).
- Enter total deductions (80C, 80D, HRA, home loan interest) — used for old regime.
- Choose to compare both regimes or view one.
- See tax payable under new and old regime, plus which saves more.
Frequently Asked Questions
How is income tax calculated in India for FY 2025-26?
Income tax is calculated on slab rates. Under the new regime, taxable income up to ₹4,00,000 is nil, ₹4-8 lakh at 5%, ₹8-12 lakh at 10%, ₹12-16 lakh at 15%, ₹16-20 lakh at 20%, ₹20-24 lakh at 25%, and above ₹24 lakh at 30%. A 4% health and education cess is added.
What is the 87A rebate for FY 2025-26?
Under the new regime, income up to ₹12,00,000 gets a rebate of up to ₹60,000 under Section 87A, making tax zero. Under the old regime, the rebate is ₹12,500 for income up to ₹5,00,000.
What is marginal relief in income tax?
Marginal relief ensures that if your income marginally exceeds ₹12 lakh, tax does not exceed the income above the threshold. Example: ₹12,19,740 income → tax restricted to ₹19,740 (before cess).
Which regime is better – new or old?
New regime is better with limited deductions. Old regime is better if you claim substantial 80C, 80D, HRA, and home loan deductions. Use this calculator to compare.
What is the standard deduction for salaried employees?
₹75,000 under new regime and ₹50,000 under old regime. This makes salary up to ₹12,75,000 tax-free under the new regime.
Are the tax slabs changed for FY 2026-27?
No. Budget 2026 left the slabs unchanged. The same slabs from FY 2025-26 continue for FY 2026-27.