New regime tax slabs (default)
The new regime is the default for FY 2025-26 and FY 2026-27. Budget 2026 left the slabs unchanged.
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹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% |
- Standard deduction: ₹75,000 for salary and pension.
- Rebate: if taxable income is ₹12 lakh or less, a rebate of up to ₹60,000 makes the tax nil (section 87A, section 156 of the new Act). For a salaried person that means a salary of up to ₹12.75 lakh is tax-free. Just above ₹12 lakh of taxable income, marginal relief limits the tax to the income above ₹12 lakh.
- Few deductions: most exemptions (HRA, 80C, 80D, home-loan interest on a self-occupied house) aren't allowed. The employer's NPS contribution is.
Old regime tax slabs (optional)
| Taxable income | Below 60 | 60 to 79 | 80 and above |
|---|---|---|---|
| Up to ₹2,50,000 | 0% | 0% | 0% |
| ₹2,50,001 – ₹3,00,000 | 5% | 0% | 0% |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | 0% |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Standard deduction ₹50,000; rebate of up to ₹12,500 if taxable income is ₹5 lakh or less. In exchange for the higher rates, you keep the deductions: HRA, 80C (₹1.5 lakh), 80D, home-loan interest (₹2 lakh), NPS 80CCD(1B) (₹50,000) and others.
Both regimes add a 4% health and education cess, and a surcharge on very high incomes: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and in the old regime only 37% above ₹5 crore.
Worked example: ₹15 lakh salary
| New regime | Old regime (no deductions) | Old regime (₹4.25 lakh of deductions) | |
|---|---|---|---|
| Taxable income | ₹14,25,000 | ₹14,50,000 | ₹10,25,000 |
| Tax incl. cess | ₹97,500 | ₹2,57,400 | ₹1,24,800 |
On ₹15 lakh, the old regime only wins with more than about ₹5.44 lakh of deductions beyond the standard deduction. Typically that means full 80C, health insurance, a large HRA exemption and home-loan interest. The calculator works this break-even point out for your salary.
Which regime should you choose?
- Few deductions, or salary up to ₹12.75 lakh: the new regime almost always wins.
- High rent in a big city plus a home loan plus full 80C: check both. The old regime can still win, usually at higher salaries.
- Salaried people can switch every year when filing the return, whatever they told their employer for TDS. People with business or professional income face strict limits on switching back and forth, so check with a CA before leaving the default.
Self-employed or a freelancer? The freelancer tax calculator applies presumptive taxation (44ADA), where only 50% of receipts is taxed.
Frequently asked questions
Is income up to ₹12 lakh tax-free?
Which is better, the new or old tax regime?
Are FY 2026-27 slabs different from FY 2025-26?
Can I claim HRA in the new regime?
How is monthly TDS on salary worked out?
Can I change regime when I file my return?
Last updated . How we check our tools. Sources: Income-tax Act 1961 and Income-tax Act 2025 (s.156 rebate, s.202 new regime); Finance Act 2025 and Budget 2026 (no change to slabs); incometax.gov.in.