Income-tax slabs, rates, surcharge and cess for FY 2025-26 in new and old tax regimes - Check full list

As there seems a lot of confusion among taxpayers about revised slabs and rates in the new regime, here's an updated list of tax slabs, rates, cess and surcharge that will be applicable for FY 2025-26 and announced in Budget 2025.

FY 2025-26: New Tax Regime slab and rates

The tax rebate under the new tax regime has been proposed to be revised to ₹60,000 from ₹25,000 for total income up to of ₹12 lakh.

FY 2025-26: Old Tax Regime slab and rates

The tax rebate of ₹12,500 is available for resident individuals under the old tax regime for total income up to ₹5 lakh. Budget 2025 has continued this rebate under the old regime.

FY 2025-26: Surcharge rate – both regimes

According to CA Dr Suresh Surana, the maximum rate of surcharge is capped at 25% in case of new tax regime. Also, the maximum rate of surcharge is capped at 15% in case of dividend (for residents), long-term capital gains and short-term capital gains (under section 111A).

FY 2025-25: Health and education cess – both regimes

Health and education cess will be applicable under both tax regimes at the rate of 4%. The cess is applied on top of the total tax liability in a financial year. For example, if your tax liability is ₹1 lakh, the health and education cess at 4% will be ₹4,000.