Here is the updated Indian Income Tax Rate Chart for the Financial Year 2025–26 (Assessment Year 2026–27), reflecting the changes introduced in the Union Budget 2025.
New Tax Regime (Default Option)
The new tax regime offers concessional rates with few deductions and exemptions. As per Budget 2025, individuals with annual income up to ₹12 lakh are exempt from tax. Subject to rebate u/s. 87A of the Act. For salaried individuals, a standard deduction of ₹75,000 increases this exemption limit to ₹12.75 lakh
Income Tax Slabs & Rates:
| Annual Income (₹) | 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% |
Old Tax Regime (Optional)
The old tax regime allows various deductions (like 80C, 80D, HRA, etc.) but follows different slab rates.
For Individuals Below 60 Years:
| Annual Income (₹) | Tax 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% |
For Senior Citizens (60–79 Years):
| Annual Income (₹) | Tax Rate |
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
For Super Senior Citizens (80+ Years):
| Annual Income (₹) | Tax Rate |
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Key Highlights
- Standard Deduction: Increased to ₹75,000 for salaried individuals under the new regime.
- Tax-Free Limit: Up to ₹12 lakh (₹12.75 lakh for salaried individuals) under the new regime. (Subject to rebate u/s. 87A of the Act).
- Highest Tax Rate: 30% applicable on income above ₹24 lakh in the new regime.
- Surcharge & Cess: Applicable as per existing provisions.
If you need assistance in choosing between the old and new tax regimes based on your income and deductions, feel free to ask!