Income Tax Slabs FY 2025-26 (AY 2026-27)
From FY 2024-25, the New Tax Regime is the default regime. You must opt in to the Old Regime to claim deductions like 80C, HRA.
New Tax Regime (Default)
- Up to Rs.3,00,000 — Nil
- Rs.3L-Rs.7L — 5%
- Rs.7L-Rs.10L — 10%
- Rs.10L-Rs.12L — 15%
- Rs.12L-Rs.15L — 20%
- Above Rs.15L — 30%
Key: No tax up to Rs.7.75L (including Rs.75,000 standard deduction). Rebate u/s 87A applies.
Old Tax Regime
- Up to Rs.2,50,000 — Nil
- Rs.2.5L-Rs.5L — 5%
- Rs.5L-Rs.10L — 20%
- Above Rs.10L — 30%
Allows: 80C (Rs.1.5L), 80D, HRA, LTA, Home Loan Interest (Rs.2L), NPS (Rs.50K extra)
Which Regime Saves More?
New regime is better if deductions are below Rs.3.75 lakhs. Old regime is better with high HRA + home loan + 80C investments.