Tax regimes, slabs and rates · Tax Year 2025-26
Income tax slabs under the old regime
The old regime has four slabs: nil, 5%, 20% and 30%, with a higher exemption for senior citizens. Learn the slab table by age, the rebate, surcharge, cess, and worked examples that show how slab tax is calculated.
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Under the old regime, a person below 60 pays no tax up to ₹2,50,000, 5% on the next ₹2,50,000, 20% on the next ₹5,00,000, and 30% above ₹10,00,000. Senior citizens (60 to 79) have a ₹3,00,000 exemption and super senior citizens (80 and above) have ₹5,00,000. Add 4% cess on the tax.
These are the Finance Act 2025 figures TaxCare applies for the tax year 2025-26, which are signed off. The tax year 2026-27, the first under the Income-tax Act, 2025, carries them forward provisionally and they are not yet signed off against that Act or the Finance Act 2026.
Slab table by age
Taxable income | Below 60 | 60 to 79 (senior) | 80 and above (super senior) |
|---|---|---|---|
Up to ₹2,50,000 | Nil | Nil | Nil |
₹2,50,001 to ₹3,00,000 | 5% | Nil | Nil |
₹3,00,001 to ₹5,00,000 | 5% | 5% | Nil |
₹5,00,001 to ₹10,00,000 | 20% | 20% | 20% |
Above ₹10,00,000 | 30% | 30% | 30% |
Think of the exemption as the first slab being nil up to the limit for your age. A super senior citizen pays nothing up to ₹5,00,000, then 20%, then 30%.
How slab tax works
Each rate applies only to the part of income inside that slab. It is not the whole income taxed at the top rate.
Example 1: age 35, taxable income ₹8,00,000
- ₹2,50,000 at nil = ₹0
- ₹2,50,000 at 5% = ₹12,500
- ₹3,00,000 at 20% = ₹60,000
- Slab tax = ₹72,500; with 4% cess, ₹75,400.
Example 2: age 65, taxable income ₹8,00,000
- ₹3,00,000 at nil = ₹0
- ₹2,00,000 at 5% = ₹10,000
- ₹3,00,000 at 20% = ₹60,000
- Slab tax = ₹70,000; with cess, ₹72,800.
Example 3: age 35, taxable income ₹15,00,000
- ₹2,50,000 at nil = ₹0; ₹2,50,000 at 5% = ₹12,500; ₹5,00,000 at 20% = ₹1,00,000; ₹5,00,000 at 30% = ₹1,50,000
- Slab tax = ₹2,62,500; with cess, ₹2,73,000.
Taxable income is not your salary
The slabs apply to taxable income, after deductions. For a salaried person this means salary less the standard deduction (₹50,000 in the old regime) and less deductions such as 80C (up to ₹1,50,000 together with 80CCC and 80CCD(1)), 80D, home loan interest and others. See old vs new tax regime for the list.
Rebate: nil tax up to ₹5,00,000
If total income is ₹5,00,000 or less, a rebate of up to ₹12,500 makes the tax nil. There is no marginal relief in the old regime. If your income is ₹5,00,001, you pay tax on the slab, with no rebate.
Surcharge
For high incomes, a surcharge is added to the tax before cess:
Total income | Surcharge |
|---|---|
Above ₹50 lakh | 10% |
Above ₹1 crore | 15% |
Above ₹2 crore | 25% |
Above ₹5 crore | 37% |
The surcharge rules have further limits for particular kinds of income. This guide does not cover them.
Special-rate income is outside the slabs
Some income does not follow the slabs. In TaxCare's 2025-26 rules: short-term gains on listed shares (section 111A) are taxed at 20%; long-term gains on listed shares (section 112A) at 12.5% above ₹1,25,000; virtual digital asset income at 30%; and lottery and similar winnings at 30%. See short-term vs long-term capital gains.
Old regime or new regime?
The old regime has higher slab rates but allows deductions. Whether it wins depends on your deductions. See is the new tax regime better for you for the break-even, and compare slabs side by side in old vs new tax regime.
A belated return cannot use the old regime in TaxCare's rules, so file on time if you want it.
How TaxCare helps
TaxCare applies these slabs to your own data, with the right age band and the rebate, surcharge and cess, and shows both regimes side by side before you decide. It brings in your salary and TDS from the portal. You can try numbers on the income tax calculator. See pricing for filing.
This guide gives general information and is not professional tax advice.
Questions on this topic
What are the old regime slabs?
On TaxCare's 2025-26 rules for a person below 60: nil up to ₹2,50,000, 5% from ₹2,50,001 to ₹5,00,000, 20% from ₹5,00,001 to ₹10,00,000 and 30% above ₹10,00,000.
Is there a rebate in the old regime?
Yes. Up to ₹12,500 if total income is ₹5,00,000 or less. It is a cliff: just above ₹5,00,000 the rebate disappears completely.
Do senior citizens get a higher exemption?
Yes. The basic exemption is ₹3,00,000 for ages 60 to 79 and ₹5,00,000 for age 80 and above.
Is cess added to the tax?
Yes. Health and education cess of 4% is added to the tax and any surcharge.
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