Is 12 lakh salary tax-free in FY 2026-27?

Yes, under the New Tax Regime for FY 2026-27, salary up to Rs 12.75 lakh is effectively tax-free. The Rs 75,000 standard deduction reduces taxable income, and Section 87A provides a rebate of up to Rs 60,000 for taxable income up to Rs 12 lakh. So gross salary of Rs 12,75,000 results in zero tax payable.

How much tax on 15 lakh salary in new regime?

For Rs 15 lakh salary under New Regime FY 2026-27: Gross salary Rs 15,00,000 minus standard deduction Rs 75,000 = taxable income Rs 14,25,000. Tax calculation: 0-4L nil + 4-8L at 5% (Rs 20,000) + 8-12L at 10% (Rs 40,000) + 12-14.25L at 15% (Rs 33,750) = Rs 93,750. Plus 4% cess = Rs 3,750. Total tax = Rs 97,500. Monthly take-home = Rs 1,16,875.

Which regime is better for 20 lakh salary?

For Rs 20 lakh salary: New Regime tax is approximately Rs 2,18,400. Under Old Regime with full deductions (80C: Rs 1.5L, 80D: Rs 25K, HRA: Rs 1.5L, standard deduction: Rs 50K = Rs 3.75L total), tax is approximately Rs 1,87,200. Old Regime saves Rs 31,200. But if your total deductions are less than Rs 3.75 lakh, New Regime is better. Calculate your exact tax with EMIBharat's free calculator.

Tax on ₹12 Lakh, ₹15 Lakh, ₹20 Lakh Salary — FY 2026-27

Q: Can I switch between old and new regime?

Yes, salaried employees can switch between old and new regime every financial year. The new regime is the default — if you want the old regime, you must specifically opt for it when filing your ITR. You can switch back to new regime the next year. Self-employed individuals can switch only once in their lifetime.

Last updated: June 2026 | 8 min read

The #1 question every salaried Indian asks: "How much tax will I pay on my salary?" This page gives you the exact tax for every salary level from ₹8 lakh to ₹30 lakh, under both Old and New Regime, with monthly take-home pay.

Calculate Your Exact Tax Free →

Is ₹12 Lakh Salary Tax-Free?

Yes! Under the New Tax Regime for FY 2026-27:

Gross Salary: ₹12,75,000
Standard Deduction: −₹75,000
Taxable Income: ₹12,00,000
Tax Before Rebate: ₹60,000
Section 87A Rebate: −₹60,000
Tax Payable: ₹0 (ZERO)

Income up to ₹12.75 lakh gross salary is effectively tax-free under the New Regime. No deductions needed, no investments required.

Master Tax Table — Every Salary Level

Gross Salary	New Regime Tax	Old Regime Tax*	Better Option	Monthly Take-Home (New)
₹8,00,000	₹0	₹0	Same	₹66,667
₹10,00,000	₹0	₹23,400	New Regime	₹83,333
₹12,00,000	₹0	₹54,600	New Regime	₹1,00,000
₹12,75,000	₹0	₹62,400	New Regime	₹1,06,250
₹15,00,000	₹97,500	₹1,04,000	Depends	₹1,16,875
₹18,00,000	₹1,63,800	₹1,66,400	Depends	₹1,36,350
₹20,00,000	₹2,18,400	₹2,08,000	Depends	₹1,48,467
₹25,00,000	₹3,58,800	₹3,38,000	Old if ded >₹2.5L	₹1,78,433
₹30,00,000	₹5,14,800	₹4,94,000	Old if ded >₹2L	₹2,07,100

*Old Regime assumes: Section 80C = ₹1.5L, 80D = ₹25K, Standard Deduction = ₹50K. Tax includes 4% Health & Education Cess.

₹15 Lakh Salary — Step-by-Step Calculation

New Regime

Gross Salary	₹15,00,000
Standard Deduction	−₹75,000
Taxable Income	₹14,25,000
0 – 4L (Nil)	₹0
4L – 8L (5%)	₹20,000
8L – 12L (10%)	₹40,000
12L – 14.25L (15%)	₹33,750
Tax before cess	₹93,750
Cess (4%)	₹3,750
Total Tax Payable	₹97,500
Monthly Take-Home	₹1,16,875

Which Regime Should You Choose?

Quick Decision Guide:

Salary up to ₹12.75L → Always New Regime (zero tax)
Salary ₹12.75L – ₹15L → New Regime wins unless you have ₹3.75L+ deductions
Salary ₹15L – ₹20L → Old Regime wins IF you claim 80C + 80D + HRA + home loan
Salary above ₹20L → Old Regime usually wins if deductions exceed ₹2-3 lakh

Not sure? Calculate both regimes with your exact numbers →

How to Save Tax on ₹15-20 Lakh Salary (Old Regime)

Section	Deduction	Max Limit	Best Investment
80C	Investments	₹1,50,000	EPF + PPF + ELSS mutual fund
80D	Health Insurance	₹25,000 (self) + ₹25,000 (parents)	Family floater policy
80CCD(1B)	NPS extra	₹50,000	NPS Tier 1 account
24(b)	Home loan interest	₹2,00,000	Home loan
HRA	Rent paid	Varies	Claim actual rent paid
Standard Ded.	Automatic	₹50,000	No action needed

Maximum possible deductions: ₹1.5L + ₹50K + ₹50K + ₹2L + HRA + ₹50K = ₹5L+ per year

New Regime Tax Slabs FY 2026-27

Income Slab	Rate	Cumulative Tax
Up to ₹4,00,000	Nil	₹0
₹4L – ₹8L	5%	₹20,000
₹8L – ₹12L	10%	₹60,000
₹12L – ₹16L	15%	₹1,20,000
₹16L – ₹20L	20%	₹2,00,000
₹20L – ₹24L	25%	₹3,00,000
Above ₹24L	30%	₹3,00,000+

Standard deduction: ₹75,000 | Section 87A rebate: up to ₹60,000 for taxable income ≤ ₹12L | 4% cess on all tax

Other Calculators

Income Tax Calculator — Calculate with your exact deductions
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Frequently Asked Questions

Is ₹12 lakh salary really tax-free?

Yes, under the New Regime. After ₹75,000 standard deduction, taxable income of ₹12 lakh qualifies for Section 87A rebate of ₹60,000, making net tax zero. Gross salary up to ₹12,75,000 is effectively tax-free.

How much tax on ₹15 lakh salary new regime?

₹97,500 (including 4% cess). Taxable income after ₹75K standard deduction = ₹14.25L. Tax: 5% on 4-8L (₹20K) + 10% on 8-12L (₹40K) + 15% on 12-14.25L (₹33,750) = ₹93,750 + cess ₹3,750 = ₹97,500.

Can I switch between old and new regime every year?

Yes, salaried employees can switch every financial year. New Regime is the default. To use Old Regime, opt for it when filing ITR. You can switch back next year. No restriction on how many times you switch.