Income tax slabs, made easier.
Understand the latest income tax slabs in India, compare the new and old tax regimes, check applicable rates and learn how rebates, deductions and cess can affect your final tax calculation.
Current slab structure
Maximum rebate for eligible taxpayers under applicable conditions.
Your final tax calculation can depend on applicable deductions, rebates, surcharge and cess in addition to slab rates.
What are income tax slabs?
Income tax slabs divide taxable income into different ranges, with a particular tax rate applying to each range. A person does not normally pay one percentage on their entire taxable income simply because they have moved into a higher slab.
The applicable calculation depends on the tax regime, income structure, eligible deductions and other provisions applicable to the taxpayer.
Your overall tax burden depends on how different portions of taxable income are treated and on other applicable tax provisions.
Current income tax slabs in India.
The new regime has seven income bands, while the old regime retains its existing slab structure. Always verify the latest applicable provisions before filing.
New Tax Regime
Old Tax Regime
A higher slab does not mean all income is taxed at that rate.
Tax slabs work progressively. When taxable income crosses a slab threshold, the applicable rate is applied to the portion falling within that slab rather than simply applying the highest rate to the entire income.
Start with total relevant income
Identify income from salary, house property, business or profession, capital gains and other sources.
Arrive at taxable income
Apply applicable deductions, exemptions and adjustments under the relevant regime.
Apply the relevant slabs
Different portions of taxable income fall into different slab ranges and applicable rates.
Check rebate, cess and surcharge
The final amount can change after considering applicable rebate, surcharge, cess and taxes already paid.
The rebate can make a major difference.
For AY 2026–27, eligible resident individuals under the new regime can receive a Section 87A rebate of up to ₹60,000 where total income does not exceed ₹12 lakh, subject to applicable conditions.
Maximum rebate under the new regime
Applicable to eligible resident individuals subject to the conditions prescribed for Section 87A.
Which tax regime should you look at?
There is no single answer for every taxpayer. The better regime depends on income structure, deductions, exemptions and individual circumstances.
New Tax Regime
- Default regime for eligible taxpayers.
- Lower slab rates across several income ranges.
- Fewer deductions and exemptions compared with the old regime.
- Section 87A rebate can be significant for eligible taxpayers.
- Useful to evaluate when you have fewer eligible deductions.
Old Tax Regime
- Higher slab rates for many income ranges.
- Different basic exemption limits can apply based on age.
- Provides access to various deductions and exemptions.
- Can remain relevant when eligible deductions are substantial.
- Requires a comparison based on your actual tax position.
Don't choose a regime using slab rates alone.
Tax planning should start with your complete financial picture. A taxpayer with substantial eligible deductions may have a different outcome from someone with a similar income but fewer deductions.
Latest tax insights & articles.
Income tax slab questions, answered.
Quick answers to common questions about tax slabs, regimes and tax calculations.
Income tax slabs divide taxable income into different ranges and apply different tax rates to those ranges. The applicable slabs depend on the tax regime and taxpayer circumstances.
Under the current structure, the new regime uses income bands beginning with a Nil rate up to ₹4 lakh, followed by progressively higher rates across subsequent income ranges.
The new tax regime is the default regime for eligible taxpayers, while eligible taxpayers may opt for the old regime subject to applicable rules and filing requirements.
Section 87A provides a tax rebate to eligible taxpayers meeting the prescribed conditions. The amount and income threshold depend on the applicable tax regime and assessment year.
No. Tax slabs generally work progressively, meaning different portions of taxable income are taxed at the rates applicable to their respective ranges.
Understand your slabs. Plan your tax better.
Tax slabs are only the starting point. Your final tax position can depend on your income sources, deductions, exemptions, rebate, surcharge, cess and taxes already paid.
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