New Tax Regime: Tax on ₹5, ₹10, ₹15 & ₹20 Lakh Salary

For Tax Year 2026–27, an eligible resident individual with only ordinary salary income can have no final income tax at ₹5 lakh or ₹10 lakh annual gross salary. At ₹15 lakh, the worked estimate is ₹97,500; at ₹20 lakh, it is ₹1,92,400. These figures include the ₹75,000 salary standard deduction and 4% health and education cess.

Choose the right year and income figure

Income earned from 1 April 2026 to 31 March 2027 belongs to Tax Year 2026–27 under the Income-tax Act, 2025. It is different from AY 2026–27, which relates to income earned in FY 2025–26 under the earlier Act. The official Budget 2026 FAQ gives the same new-regime slab bands for these two periods. Our calculator labels the current tax year explicitly.

Start with annual taxable gross salary before the standard deduction, including taxable bonuses and perquisites where applicable. CTC can include employer PF and other costs that are not the same as gross taxable salary. Bank interest or another ordinary taxable source can change the result.

New-regime slab rates

• Up to ₹4 lakh: nil.
• ₹4–8 lakh: 5% on this band.
• ₹8–12 lakh: 10% on this band.
• ₹12–16 lakh: 15% on this band.
• ₹16–20 lakh: 20% on this band.
• ₹20–24 lakh: 25% on this band.
• Above ₹24 lakh: 30% on the excess.

A slab rate applies only to income in its band. A ₹20 lakh salary is not taxed entirely at 20%.

Tax on ₹5, ₹10, ₹15, ₹20 and ₹25 lakh salary

Assumptions: resident individual, ordinary salary income only, full permitted ₹75,000 standard deduction, no special-rate income, other income or further deductions, and no surcharge. These are annual liability examples, not a promise about the amount on every payslip.

How the ₹15 lakh example works

Subtract ₹75,000 from ₹15,00,000 to get taxable income of ₹14,25,000. Tax is nil on the first ₹4 lakh, ₹20,000 on the next ₹4 lakh, ₹40,000 on the next ₹4 lakh and ₹33,750 on the remaining ₹2,25,000. Slab tax is ₹93,750. Cess of ₹3,750 makes final annual tax ₹97,500, or ₹8,125 per month when divided equally over twelve months.

Rebate and marginal relief

The resident rebate can eliminate ordinary slab-rate tax when taxable income is no more than ₹12 lakh, subject to the ₹60,000 limit and eligibility. With salary-only income and the standard deduction, this explains the ₹12.75 lakh gross-salary example. Non-residents do not receive this resident rebate.

Just above the rebate threshold, marginal relief limits the income-tax increase before cess. For example, ₹12.10 lakh already-taxable ordinary income gives ₹10,000 after marginal relief and ₹10,400 including cess. Our tool applies this relief instead of creating a sudden full-tax jump.

PF deductions and monthly TDS

Employee EPF contributions do not create a separate 80C deduction in the new regime. PF reduces available salary cash, while income tax is calculated using the applicable taxable-income rules. The monthly equivalent in the calculator is annual liability divided by twelve. Employers may spread TDS differently after bonuses, previous-employer income, revised declarations or tax already deducted.

Use the calculator within its scope

The tool supports ordinary slab-rate taxable income up to ₹50 lakh. It excludes capital gains, lottery and crypto income, agricultural-income aggregation, surcharge and special reliefs. “Already taxable ordinary income” mode skips the salary standard deduction. Regular pension can use salary mode; family pension follows separate rules and is excluded.

Official sources

Checked 1 November 2026. See the Income Tax Department’s Budget 2026 rates FAQ, official salary tax, rebate and cess guidance and Income-tax Act, 2025 and transition resources. Independent estimate for education, not a return-filing service.

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