Income tax slab
A band of income taxed at one rate; higher bands are taxed at higher rates.
A tax slab is a band of income with its own tax rate. Your income climbs through the bands, and each part is taxed at its band’s rate, not your highest one. Read more in old vs new tax regime.
Key facts
- New regime
- Nil up to 4 lakh; 5% to 8 lakh; 10% to 12 lakh; 15% to 16 lakh; 20% to 20 lakh; 25% to 24 lakh; 30% aboveSame for all ages. Check the current rates.
- Old regime, below 60
- Nil up to 2.5 lakh; 5% to 5 lakh; 20% to 10 lakh; 30% aboveTax-free limit is 3 lakh for ages 60 to 79, and 5 lakh for 80 and above.
- Cess
- 4% health and education cess on the tax, in both regimes
Questions people ask
What are the new regime tax slabs?
Nil up to 4 lakh rupees, then 5% up to 8 lakh, 10% up to 12 lakh, 15% up to 16 lakh, 20% up to 20 lakh, 25% up to 24 lakh and 30% above that, per the Income Tax Department. With the rebate, regular income up to 12 lakh owes no tax. Check the current rates.
Does my whole income get taxed at my highest slab?
No. Each slab's rate applies only to the income inside that band. If you earn 10 lakh rupees under the new regime, the first 4 lakh is tax-free, the next 4 lakh pays 5%, and only the last 2 lakh pays 10%.
What are the old regime tax slabs?
For people under 60: nil up to 2.5 lakh rupees, 5% up to 5 lakh, 20% up to 10 lakh and 30% above. The tax-free limit is 3 lakh for ages 60 to 79 and 5 lakh for 80 and above.
One money lesson, in your inbox
A short, plain money lesson built from real news. Free. Unsubscribe anytime.
We will never spam you or sell your details. How we handle your email