2025 Tax Brackets Vs 2025 Taxes. Most taxpayers pay a maximum 15% rate, but a 20% tax rate applies to the extent that taxable income exceeds the thresholds set for the 37% ordinary tax rate. This rationalization is intended to reduce tds deductions, leaving taxpayers with a higher net income.

Understand the exemption limits, tax slabs, surcharges, and eligibility for individuals, senior citizens, firms, and companies. For 2025, all five federal income tax brackets have been indexed to inflation using the 2.7 per cent rate.