Income Tax on Salary in India (FY 2025-26): New Regime Slabs Explained

If you earn a salary in India, the New Tax Regime is now the default from FY 2025-26 (AY 2026-27). Here's how much tax you actually pay, in plain language.

New Tax Regime slabs (FY 2025-26)

• 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%

The ₹12 lakh rebate (Section 87A)

Thanks to the enhanced Section 87A rebate, if your taxable income is up to ₹12,00,000, your tax works out to zero. For salaried people, the ₹75,000 standard deduction pushes this to a gross salary of about ₹12.75 lakh with no tax.

Standard deduction

Salaried employees and pensioners get a flat ₹75,000 standard deduction under the New Regime — no bills or proofs needed.

Health & education cess

A 4% cess is added on top of your income tax.

Check your own tax in seconds

Enter your salary into the free Income Tax Calculator (India) to see your taxable income, tax, cess and take-home instantly.

What about HRA and the Old Regime?

House Rent Allowance (HRA) exemption is available only under the Old Tax Regime. If you pay rent, it's worth comparing both regimes. Use the HRA Exemption Calculator to find your exempt HRA, and the Salary Calculator to break down your pay.

This is general information, not tax advice. Verify important decisions with a qualified professional.