Income tax · salaried
Income tax on ₹12 lakh salary in FY 2026-27: zero under the new regime (₹75,000 standard deduction + rebate). Old vs new comparison and calculator.
New regime: ₹0 tax on a ₹12 lakh salary. Taxable income after the ₹75,000 standard deduction is ₹11,25,000; slab tax of ₹52,500 is fully cancelled by the rebate (allowed up to ₹12 lakh taxable income, max ₹60,000).
Old regime (with ₹1.5 lakh 80C and ₹50,000 standard deduction): about ₹1,17,000 including 4% cess.
Salaried people pay no tax under the new regime up to a salary of ₹12.75 lakh.
Updated 2 October 2026
Plus 4% health & education cess on the tax. Salaried employees get a ₹75,000 standard deduction under the new regime. The rebate makes tax nil when taxable income is up to ₹12 lakh.
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | 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% |
At ₹13 lakh salary, taxable income is ₹12,25,000. Normal slab tax would be ₹63,750, but marginal relief caps the tax at the income above ₹12 lakh (₹25,000), so you pay ₹26,000 including cess. Relief disappears at higher incomes once slab tax becomes lower than the excess income.
Old-regime column assumes ₹1.5 lakh of 80C investments and the ₹50,000 old-regime standard deduction, with no HRA or home-loan interest. Totals include 4% cess.
| Gross salary | New: taxable | New regime tax | Old regime tax |
|---|---|---|---|
| ₹7,00,000 | ₹6,25,000 | ₹0 | ₹0 |
| ₹10,00,000 | ₹9,25,000 | ₹0 | ₹75,400 |
| ₹12,00,000 | ₹11,25,000 | ₹0 | ₹1,17,000 |
| ₹12,75,000 | ₹12,00,000 | ₹0 | ₹1,40,400 |
| ₹13,00,000 | ₹12,25,000 | ₹26,000 | ₹1,48,200 |
| ₹15,00,000 | ₹14,25,000 | ₹97,500 | ₹2,10,600 |
| ₹18,00,000 | ₹17,25,000 | ₹1,50,800 | ₹3,04,200 |
Naye regime me ₹12 lakh ki salary par koi tax nahi lagta — ₹75,000 standard deduction ke baad taxable income ₹11.25 lakh bachti hai, aur ₹12 lakh tak rebate milne se poora tax zero ho jata hai. Purane regime me deductions ke hisab se tax lagbhag ₹1 lakh+ ho sakta hai, isliye zyadatar salaried logon ke liye naya regime fayde ka hai — jab tak aapke HRA, home loan interest jaise bade deductions na hon.
If your deductions are large — HRA exemption, home-loan interest, 80C, 80D health insurance and NPS together — the old regime can sometimes beat the new one at higher salaries. Compare both with your actual numbers.
Under the new regime, yes for resident individuals: the rebate makes tax nil when taxable income does not exceed ₹12 lakh. Salaried people effectively pay nothing up to ₹12.75 lakh gross salary because of the ₹75,000 standard deduction. Special-rate income such as capital gains is treated separately.
Taxable income is ₹14,25,000 and tax including cess is about ₹97,500.
The Income-tax Act, 2025 came into force from April 2026. The Union Budget 2026-27 did not announce any change to the new-regime slabs, so the rates above continue for tax year 2026-27.
Nahi. Marginal relief ki wajah se ₹12 lakh se upar ki income par tax us extra income se zyada nahi hota. Jaise ₹13 lakh salary par lagbhag ₹26,000 tax (cess sahit).
The new regime is the default. Salaried employees can choose the old regime when filing the return if it is better for them, subject to the rules for that year.