Slab rates are the foundation of your entire tax calculation, and they changed meaningfully with the Finance Act 2025. Here is the complete picture for FY 2025-26, in one place.
New regime slabs (the default)
- ✓Up to Rs 4 lakh: nil
- ✓Rs 4 to 8 lakh: 5%
- ✓Rs 8 to 12 lakh: 10%
- ✓Rs 12 to 16 lakh: 15%
- ✓Rs 16 to 20 lakh: 20%
- ✓Rs 20 to 24 lakh: 25%
- ✓Above Rs 24 lakh: 30%
The Section 87A rebate cancels your entire tax if taxable income stays within Rs 12 lakh. Add the Rs 75,000 standard deduction for salaried people, and salary up to Rs 12.75 lakh means zero tax.
Old regime slabs (optional)
- ✓Up to Rs 2.5 lakh: nil
- ✓Rs 2.5 to 5 lakh: 5%
- ✓Rs 5 to 10 lakh: 20%
- ✓Above Rs 10 lakh: 30%
The old regime keeps its deductions: 80C, 80D, HRA, home loan interest and friends. Its rebate covers income only up to Rs 5 lakh.
What gets added on top
Whatever slab tax you land on, add 4% health and education cess. High earners also pay surcharge: 10% above Rs 50 lakh, 15% above Rs 1 crore, and higher beyond that. Slabs apply progressively, so only the income inside each band is taxed at that band's rate. Earning Rs 13 lakh does not mean 15% on everything, a myth that refuses to die.
Want your exact number? The free calculator on Saathi.Tax shows your tax under both regimes, slab by slab, in seconds.
