{"id":3488,"date":"2026-01-13T19:30:00","date_gmt":"2026-01-13T14:00:00","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=3488"},"modified":"2026-01-13T15:21:00","modified_gmt":"2026-01-13T09:51:00","slug":"income-tax-slabs-fy-2025-26-explained-how-much-tax-will-you-pay-under-new-regime","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/income-tax-slabs-fy-2025-26-explained-how-much-tax-will-you-pay-under-new-regime\/","title":{"rendered":"Income Tax Slabs FY 2025\u201326 Explained: How Much Tax Will You Pay Under New Regime?"},"content":{"rendered":"\n
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Synopsis:<\/strong> It\u2019s essential to learn about income tax slabs to understand how much of your earnings will be taxed and how much you will get after tax. This information is crucial in everyone\u2019s financial planning journey. This article explains what tax slabs are, old as well as the new tax regime, how to calculate your tax and which regime is right for you. <\/em><\/p>\n<\/blockquote>\n\n\n\n

What is a Tax Slab?<\/strong><\/h2>\n\n\n\n

Tax slabs are income ranges set by the government where each range is taxed at a different rate. In India, income tax slabs are progressive in nature, which means the tax slabs rise with the rise in income ranges. These income tax slabs ensure fair taxation at each level of income by reducing the tax burden on low-income earners by making high-income earners contribute more. <\/p>

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New Tax Regime v\/s Old Tax Regime <\/strong><\/h2>\n\n\n\n

Income tax can be calculated using two different regimes- the Old Tax Regime and the New Tax Regime. Taxpayers get to choose which regime they want to follow. Salaried employees can choose each financial year, whereas professional or business income taxpayers can only choose once. Hence, understanding the income tax slabs under both regimes is crucial to making sound decisions.<\/p>\n\n\n\n

Income tax slabs for FY 2025-26<\/strong><\/h2>\n\n\n
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Note: Income up to \u20b912 lakh is tax-free due to the applicable rebate.<\/p>\n<\/blockquote>\n\n\n\n

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Also read: ETFs vs Mutual Funds: Where Should You Invest Your Money in 2026?<\/a><\/strong><\/h4>\n<\/blockquote>\n\n\n\n

How much will you pay in new Tax Slabs FY 2025-26?<\/strong><\/h2>\n\n\n\n
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  • Under the New Tax Regime, income up to \u20b94 lakh is tax-free. This increases the basic exemption limit from \u20b92.5 lakh to \u20b94 lakh. <\/li>\n\n\n\n
  • If your taxable income is between \u20b94 lakh and \u20b98 lakh, then the income tax slab applicable would be 5%. <\/li>\n<\/ul>\n\n\n\n

    Example<\/strong>: If an individual has a taxable income of \u20b96 lakh, no tax is payable on the first \u20b94 lakh, while the remaining \u20b92 lakh is taxed at 5%. This results in a total tax liability of \u20b910,000 before applying any rebate or health and education cess. Similarly, for individuals with taxable income between \u20b98 lakh and \u20b912 lakh, the applicable income tax rate under the new regime is 10% on the income falling within this slab.<\/p>