Budget 2025 brought significant changes to income tax slabs under the new regime, making it more attractive for a larger share of taxpayers. Here is a complete comparison of slabs for both financial years so you can plan ahead.

New Tax Regime: AY 2025-26 (FY 2024-25)

  • Up to \u20b93,00,000: Nil
  • \u20b93,00,001 \u2013 \u20b96,00,000: 5%
  • \u20b96,00,001 \u2013 \u20b99,00,000: 10%
  • \u20b99,00,001 \u2013 \u20b912,00,000: 15%
  • \u20b912,00,001 \u2013 \u20b915,00,000: 20%
  • Above \u20b915,00,000: 30%

Section 87A rebate: up to \u20b925,000 for income \u2264 \u20b97 lakh. Standard deduction: \u20b975,000.

New Tax Regime: AY 2026-27 (FY 2025-26)

  • Up to \u20b94,00,000: Nil
  • \u20b94,00,001 \u2013 \u20b98,00,000: 5%
  • \u20b98,00,001 \u2013 \u20b912,00,000: 10%
  • \u20b912,00,001 \u2013 \u20b916,00,000: 15%
  • \u20b916,00,001 \u2013 \u20b920,00,000: 20%
  • \u20b920,00,001 \u2013 \u20b924,00,000: 25%
  • Above \u20b924,00,000: 30%

Section 87A rebate: up to \u20b960,000 for income \u2264 \u20b912 lakh. Standard deduction: \u20b975,000.

Old Tax Regime Slabs (Unchanged)

  • Up to \u20b92,50,000: Nil | \u20b92,50,001\u2013\u20b95,00,000: 5% | \u20b95,00,001\u2013\u20b910,00,000: 20% | Above \u20b910,00,000: 30%

Key Takeaway

For FY 2025-26, the new regime is clearly better for most salaried employees earning up to \u20b912 lakh (zero tax) and also for high earners who lack significant deductions. The old regime remains relevant only for those with HRA, home loan interest, and substantial 80C commitments exceeding \u20b93.5\u20134 lakh in total deductions.

Use the SaveTaxNow Calculator to compute your exact tax under both regimes for FY 2025-26.