New Tax Regime: How Much Tax at ₹8L, ₹12L, ₹15L, ₹20L, ₹30L Salary?

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Quick reference: here's the exact income tax you pay under the New Tax Regime in FY 2025-26 for common salary levels. All figures include the ₹75,000 standard deduction and 4% cess.

Tax Calculation Table — New Regime FY 2025-26

Annual GrossTaxable IncomeTax (before cess)+ 4% CessTotal TaxMonthly Take-Home*
₹7,00,000₹6,25,000₹11,250₹450₹11,700~₹55,500
₹8,00,000₹7,25,000₹16,250₹650₹16,900~₹63,400
₹10,00,000₹9,25,000₹26,250₹1,050₹27,300~₹78,200
₹12,00,000₹11,25,000₹36,250REBATE₹0~₹93,500
₹12,75,000₹12,00,000₹40,000REBATE₹0~₹100,000
₹15,00,000₹14,25,000₹91,250₹3,650₹94,900~₹89,900
₹20,00,000₹19,25,000₹1,91,250₹7,650₹1,98,900~₹1,28,700
₹25,00,000₹24,25,000₹3,11,250₹12,450₹3,23,700~₹1,55,825
₹30,00,000₹29,25,000₹4,51,250₹18,050₹4,69,300~₹1,82,975
₹50,00,000₹49,25,000₹10,51,250₹42,050₹10,93,300~₹2,88,400

*Monthly take-home assumes EPF (12% of 40% basic) and ₹200 professional tax. Actual amounts vary.

The ₹12 Lakh Sweet Spot

Notice that at ₹12,75,000 gross salary, your tax is still ZERO. This is because:

  • Gross: ₹12,75,000
  • Standard deduction: −₹75,000
  • Taxable income: ₹12,00,000
  • Section 87A rebate eliminates all tax up to ₹12L taxable income

At ₹12,80,000 gross — just ₹5,000 more — you suddenly owe tax on the amount above ₹12L. This marginal relief provision ensures you never pay more tax than the income above the threshold.

Why Does Tax Jump Sharply Above ₹12L?

Between ₹12L and ~₹15L gross, the effective tax rate seems high. This is because you've lost the 87A rebate AND have taxable income in the 10–15% slabs simultaneously. The effective rate normalises as income increases further.

Effective Tax Rates

Gross SalaryTotal TaxEffective Rate (on gross)
₹10,00,000₹27,3002.7%
₹12,75,000₹00%
₹15,00,000₹94,9006.3%
₹20,00,000₹1,98,9009.9%
₹30,00,000₹4,69,30015.6%
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