Income Tax Slabs FY 2025-26: New Regime vs Old Regime Explained
Understand the new and old income tax slabs for FY 2025-26, the ₹12L zero-tax benefit under the new regime, standard deduction, 87A rebate, and how to decide which regime to choose.
Quick answer
For FY 2025-26, income up to ₹12L is effectively zero-tax under the new regime after the ₹60,000 Section 87A rebate (₹12.75L for salaried after ₹75k standard deduction). The new regime is the default — old regime must be opted into.
When this matters
This is useful when you want to compare scenarios using your own numbers instead of generic rules. It is designed for Indian households using Niyamfin calculators for private, browser-side estimates.
Key numbers or assumptions
- New regime slabs (Budget 2025): 0–4L nil, 4–8L 5%, 8–12L 10%, 12–16L 15%, 16–20L 20%, 20–24L 25%, above 24L 30%.
- Section 87A rebate of ₹60,000 makes tax zero for income up to ₹12L under the new regime.
- Old regime standard deduction is ₹50,000; new regime is ₹75,000 for salaried employees.
Example calculation
Salaried income ₹12,75,000: under new regime, taxable income after ₹75k standard deduction = ₹12,00,000. Tax computed on slabs = ₹60,000. 87A rebate = ₹60,000. Net tax = ₹0.
Use the calculator
Want to estimate this with your own numbers? Use the relevant Niyamfin calculators below.
Common mistakes
- Using old regime slab rates for new regime calculations.
- Forgetting that 80C, HRA, LTA deductions are not available under the new regime.
- Not re-evaluating regime choice after salary hikes or major deduction changes.
What to do next
Use the New vs Old Tax calculator with your actual income and deductions to find which regime saves more for your situation this year.
Data sources checked
Data last checked: 2026-06-19
Disclaimer
This article is for general education only. It does not provide financial, investment, tax, insurance, lending, or legal advice and should not be used as the basis for financial decisions.