New Tax Regime Slabs and Rates for FY 2025-26
The complete new tax regime slab table for FY 2025-26 with the Budget 2025 revisions. Includes surcharge rates, education cess, and effective tax at each income level.
All figures and facts in this article are sourced directly from primary government and regulatory publications — including the Reserve Bank of India, SEBI, EPFO, the Income Tax Department, PFRDA, and IRDAI — and verified before publication. No claim is published from a single source without corroboration.
New tax regime slabs for FY 2025-26
The following slabs apply under the new tax regime (Section 115BAC) for FY 2025-26 (Assessment Year 2026-27), as revised by Budget 2025 and notified in the Finance Act 2025. These slabs apply equally to individuals, HUFs, AOPs, and BOIs.
| Taxable 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% |
Important: These are the slabs on taxable income — after standard deduction (₹75,000 for salaried) and any eligible deductions.
What changed in Budget 2025?
The slabs above are a significant revision from the FY 2023-24 and 2024-25 slabs. Key changes made by Budget 2025:
- The nil-rate slab was widened from ₹0–₹3L to ₹0–₹4L
- New slab bands of ₹4L each replaced the earlier ₹3L bands
- Section 87A rebate threshold was raised from ₹7L to ₹12L, effectively making income up to ₹12L tax-free
- Standard deduction for salaried employees in the new regime was confirmed at ₹75,000 (introduced by Budget 2024)
These changes are sourced from the Finance Act 2025.
The same slabs for all ages
Unlike the old regime, the new tax regime applies the same slabs regardless of age. There is no higher basic exemption for senior citizens (60–79) or super senior citizens (80+). Both groups use the same ₹4L nil-rate slab.
This is a disadvantage for senior citizens compared to the old regime, where they get a ₹3L (senior) or ₹5L (super senior) basic exemption.
Surcharge on the new regime
For taxable income above ₹50 lakh, a surcharge is added to the base tax:
| Taxable income | Surcharge rate (new regime) | Surcharge rate (old regime) |
| Up to ₹50L | Nil | Nil |
| ₹50L – ₹1 Cr | 10% | 10% |
| ₹1 Cr – ₹2 Cr | 15% | 15% |
| ₹2 Cr – ₹5 Cr | 25% | 25% |
| Above ₹5 Cr | 25% | 37% |
The new regime caps surcharge at 25% for all income levels. The old regime applies a 37% surcharge above ₹5 crore. This cap was introduced in Budget 2023 and makes the new regime meaningfully better for very high earners.
Education cess
After computing (base tax + surcharge), a 4% Health and Education Cess is added. This applies in both regimes.
Total effective rate = (tax × (1 + surcharge rate)) × 1.04
Effective tax rates at each income level
For a salaried employee below 60 under the new regime, with no deductions except standard deduction of ₹75,000:
| Gross salary | Taxable income | Base slab tax | After 87A rebate | With 4% cess |
| ₹5,00,000 | ₹4,25,000 | ₹1,250 | ₹0 (rebate) | ₹0 |
| ₹8,00,000 | ₹7,25,000 | ₹16,250 | ₹0 (rebate) | ₹0 |
| ₹12,75,000 | ₹12,00,000 | ₹60,000 | ₹0 (rebate) | ₹0 |
| ₹13,00,000 | ₹12,25,000 | ₹63,750 | ₹25,000 (marginal relief) | ₹26,000 |
| ₹15,00,000 | ₹14,25,000 | ₹96,250 | ₹96,250 | ₹1,00,100 |
| ₹20,00,000 | ₹19,25,000 | ₹2,00,000 | ₹2,00,000 | ₹2,08,000 |
| ₹25,00,000 | ₹24,25,000 | ₹3,07,500 | ₹3,07,500 | ₹3,19,800 |
| ₹30,00,000 | ₹29,25,000 | ₹4,57,500 | ₹4,57,500 | ₹4,75,800 |
| ₹50,00,000 | ₹49,25,000 | ₹11,57,500 | ₹11,57,500 | ₹12,03,800 |
Effective tax rate comparison
The effective tax rate (total tax ÷ gross salary) under the new regime is considerably lower than common perception — especially below ₹15L:
- At ₹12.75L gross: 0%
- At ₹15L gross: 6.7%
- At ₹20L gross: 10.4%
- At ₹30L gross: 15.9%
- At ₹50L gross: 24.1%
How to compute your tax
Use the old vs new tax regime calculator](/tools/tax-regime-calculator) to see your exact tax under both regimes, with deductions, surcharge, and cess factored in. Or use the [Income Tax Department's official e-filing portal for a legally binding assessment.
Sources
Content on Ek Crore is for educational purposes only. Nothing here is financial advice. Always consult a SEBI-registered advisor, CA, or qualified professional before making investment or tax decisions.