New Tax Regime Slabs for FY 2025-26 (AY 2026-27)
Updated for FY 2025-26 · Budget 2025 rates
Budget 2025 widened the new regime slabs and raised the rebate. Here are the rates that apply to your income earned between April 2025 and March 2026.
FY 2025-26 new regime slab rates
| Income slab | Tax 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% |
On top of the calculated tax, a 4% health & education cess applies. A surcharge applies at higher incomes (above ₹50 lakh).
Standard deduction
Salaried individuals (and pensioners) get a standard deduction of ₹75,000 in the new regime for FY 2025-26 — up from ₹50,000 earlier.
Section 87A rebate — zero tax up to ₹12 lakh
If your taxable income is up to ₹12,00,000, the 87A rebate brings your tax to zero. For salaried people, the ₹75,000 standard deduction pushes the effective tax-free salary to about ₹12.75 lakh. See exactly how this works.
Calculate your exact tax under these FY 2025-26 slabs.
Open the Calculator →Worked example: ₹16 lakh salary
Taxable income after the ₹75,000 standard deduction = ₹15,25,000.
- ₹4–8L @ 5% = ₹20,000
- ₹8–12L @ 10% = ₹40,000
- ₹12–15.25L @ 15% = ₹48,750
- Tax = ₹1,08,750 + 4% cess = ₹1,13,100