What the FY2025-26 salary tax slabs mean for your monthly take-home

The Finance Act 2025 reduced the rate on the first taxable bracket for salaried individuals from 5% to 1% and the second from 15% to 11%, while leaving the exemption threshold at Rs 600,000 a year. The surcharge on very high incomes was trimmed from 10% to 9%.

Who benefits most

The relief is concentrated on salaries between Rs 50,000 and Rs 183,000 a month, the range where most formal-sector employees sit.

Monthly salary	Annual tax FY2024-25	Annual tax FY2025-26	Saving / year
Rs 75,000	Rs 15,000	Rs 3,000	Rs 12,000
Rs 100,000	Rs 30,000	Rs 6,000	Rs 24,000
Rs 150,000	Rs 120,000	Rs 72,000	Rs 48,000
Rs 250,000	Rs 380,000	Rs 300,000	Rs 80,000
Rs 500,000	Rs 1,365,000	Rs 1,281,000	Rs 84,000

Above Rs 4.1 million a year (about Rs 342,000 a month) the marginal rate stays at 35%, so the saving flattens.

What to do

Check your own figure with the Income Tax Calculator.
If your employer is still deducting at last year's rates, ask HR to update the withholding schedule; the excess is refundable only after you file a return.
Not on the Active Taxpayer List yet? Becoming a filer takes 20 minutes and cuts withholding on cars, property and bank profit.

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