New Tax Regime: How Much Tax at ₹8L, ₹12L, ₹15L, ₹20L, ₹30L Salary?
Quick reference: here's the estimated income tax you pay under the New Tax Regime in FY 2026-27 for common salary levels. All figures include the ₹75,000 standard deduction and 4% cess.
Tax Calculation Table — New Regime FY 2026-27
The following table shows the tax liability for various gross annual salaries. We have assumed a standard deduction of ₹75,000 and the applicable 87A rebate for income up to ₹12 Lakhs (taxable).
| Annual Gross | Taxable Income | Tax (before cess) | + 4% Cess | Total Tax | Monthly Take-Home* |
|---|---|---|---|---|---|
| ₹7,00,000 | ₹6,25,000 | ₹11,250 | REBATE | ₹0 | ~₹58,100 |
| ₹8,00,000 | ₹7,25,000 | ₹16,250 | REBATE | ₹0 | ~₹66,400 |
| ₹10,00,000 | ₹9,25,000 | ₹26,250 | REBATE | ₹0 | ~₹83,100 |
| ₹12,00,000 | ₹11,25,000 | ₹36,250 | REBATE | ₹0 | ~₹99,800 |
| ₹12,75,000 | ₹12,00,000 | ₹40,000 | REBATE | ₹0 | ~₹1,06,000 |
| ₹15,00,000 | ₹14,25,000 | ₹91,250 | ₹3,650 | ₹94,900 | ~₹1,15,400 |
| ₹20,00,000 | ₹19,25,000 | ₹1,91,250 | ₹7,650 | ₹1,98,900 | ~₹1,48,400 |
| ₹25,00,000 | ₹24,25,000 | ₹3,11,250 | ₹12,450 | ₹3,23,700 | ~₹1,79,700 |
| ₹30,00,000 | ₹29,25,000 | ₹4,51,250 | ₹18,050 | ₹4,69,300 | ~₹2,09,200 |
| ₹50,00,000 | ₹49,25,000 | ₹10,51,250 | ₹42,050 | ₹10,93,300 | ~₹3,23,800 |
*Monthly take-home assumes a standard ₹200 PT and minimal EPF. Actual figures vary based on your specific deductions.
The New Tax Slabs for FY 2026-27
To understand the table above, you need to know the slabs applicable for this financial year:
- ₹0 – ₹4,00,000: 0% (Nil)
- ₹4,00,001 – ₹8,00,000: 5%
- ₹8,00,001 – ₹12,00,000: 10%
- ₹12,00,001 – ₹16,00,000: 15%
- ₹16,00,001 – ₹20,00,000: 20%
- ₹20,00,001 – ₹24,00,000: 25%
- Above ₹24,00,000: 30%
The ₹12 Lakh Sweet Spot
The most significant change in the recent budget is the extension of the Section 87A rebate to taxable income up to ₹12 Lakhs. This means if your Gross Salary is ₹12,75,000, your taxable income becomes ₹12,00,000 after the standard deduction. Since it's exactly at the threshold, your tax liability becomes NIL.
However, once you cross this ₹12,75,000 mark by even a small amount, you technically owe tax on the entire amount above the exemption limit. To prevent a "cliff effect," the government provides Marginal Relief, which ensures that the tax you pay is never more than the income you earned above the threshold.
If your gross is ₹12,80,000, your income above the threshold is ₹5,000. Your actual tax calculated via slabs would be ~₹41,600. But thanks to marginal relief, your tax is capped at ₹5,000. This continues until your slab-based tax becomes lower than the excess income earned.
Why Does Tax Jump Sharply Above ₹12.75L?
Once you cross the marginal relief zone (around ₹13.2L gross), you start paying the full 15% rate on the income slab between ₹12L and ₹16L. This is why a person at ₹15L gross pays nearly ₹95,000 in tax, whereas someone at ₹12L pays zero. This jump is a key consideration when negotiating salary hikes near these thresholds.
Effective Tax Rates Comparison
Effective tax rate is the actual percentage of your total gross salary that goes to the government. It's a better metric than "tax slab" to understand your actual burden.
| Gross Salary | Total Tax | Effective Rate (on gross) |
|---|---|---|
| ₹10,00,000 | ₹0 | 0.0% |
| ₹12,75,000 | ₹0 | 0.0% |
| ₹15,00,000 | ₹94,900 | 6.3% |
| ₹20,00,000 | ₹1,98,900 | 9.9% |
| ₹30,00,000 | ₹4,69,300 | 15.6% |
| ₹50,00,000 | ₹10,93,300 | 21.8% |
Common Mistakes to Avoid
- Ignoring Standard Deduction: Always subtract ₹75,000 from your gross salary before looking at the tax slabs. Many people forget this and overestimate their tax.
- Mixing Old and New Regime: Under the New Regime, you cannot claim HRA, LTA, or 80C deductions. If you have a large home loan or heavy investments, calculate both before choosing.
- Not Checking Marginal Relief: If you're slightly above the ₹12.75L mark, don't panic. The tax isn't as high as the slab suggests due to relief provisions.
- Professional Tax: PT of ₹2,400/year (₹200/mo) is a standard deduction allowed even in the New Tax Regime.
Conclusion
The New Tax Regime for FY 2026-27 is highly beneficial for the middle class, especially those earning between ₹7L and ₹13L. With no investment proof required, it simplifies tax filing significantly. However, for high earners (above ₹20L) or those with significant deductions, the Old Regime might still offer savings depending on the quantum of exemptions.
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