Income tax

Income tax on ₹10, ₹15, ₹20 and ₹25 lakh salary in FY 2026-27

Updated October 2026 · 5 min read

Under the new regime for FY 2026-27, a salary of up to ₹12.75 lakh pays zero tax. At ₹15 lakh you pay ₹97,500 for the year, at ₹20 lakh ₹1,92,400, and at ₹25 lakh ₹3,19,800, including 4% cess.

Tax at each salary (new regime)

The effective rate is total tax divided by gross salary. Even at ₹25 lakh, you pay under 13% overall, although your top slab is 30%.

How ₹15 lakh is calculated, step by step

1. Gross salary ₹15,00,000 minus the ₹75,000 standard deduction gives taxable income of ₹14,25,000.
2. Nil on the first ₹4 lakh.
3. 5% on ₹4 to 8 lakh: ₹20,000.
4. 10% on ₹8 to 12 lakh: ₹40,000.
5. 15% on ₹12 to 14.25 lakh: ₹33,750.
6. Tax: ₹93,750. Add 4% cess (₹3,750) for a total of ₹97,500.

No rebate applies here, because taxable income is above ₹12 lakh.

Why ₹13 lakh pays only ₹26,000

Just above the ₹12 lakh limit, a rule called marginal relief applies. Your tax can't be more than the income above ₹12 lakh. At ₹13 lakh salary, taxable income is ₹12.25 lakh, so tax is capped at ₹25,000 plus cess. Without this rule, earning a little more could leave you with less money.

Things that change your number

• Your employer's NPS contribution (up to 14% of basic) is deductible even in the new regime.
• Bonuses and arrears count as salary in the year you receive them.
• Interest from FDs and savings accounts is added to your income.
• If you claim large deductions, the old regime may cost less. Our new vs old regime guide shows when.