worldofcalcsIncome Tax on a ₹15 Lakh Salary in FY 2026-27 (New vs Old Regime)
A salary of ₹15 lakh a year sits just above the point where the new regime stops being tax-free. Here is the tax under each regime for tax year 2026-27, how it is worked out, and what you can do to reduce it.
Under the new regime: ₹97,500
- Salary: ₹15,00,000.
- Standard deduction: ₹75,000, leaving taxable income of ₹14,25,000.
- Tax by slab:
- Up to ₹4,00,000: nil
- ₹4,00,001 – ₹8,00,000 at 5%: ₹20,000
- ₹8,00,001 – ₹12,00,000 at 10%: ₹40,000
- ₹12,00,001 – ₹14,25,000 at 15%: ₹33,750
- Total: ₹93,750, plus 4% cess = ₹97,500 a year (₹8,125 a month).
The ₹12 lakh rebate does not apply because taxable income is above ₹12 lakh. The jump from no tax at all is steep: a ₹12,75,000 salary pays nothing, while ₹13,00,000 already pays ₹26,000.
Under the old regime: depends on your deductions
| Deductions you claim | Tax for the year |
|---|---|
| Only the ₹50,000 standard deduction | ₹2,57,400 |
| + ₹1,50,000 in 80C and ₹25,000 in 80D | ₹2,02,800 |
| + ₹50,000 NPS (80CCD(1B)) and ₹2,00,000 HRA exemption | ₹1,24,800 |
| + ₹2,00,000 home loan interest | ₹80,600 |
All amounts include cess. Only in the last row, with ₹6,25,000 of deductions on top of the standard deduction, does the old regime beat the new.
The break-even point is ₹5,43,750 of deductions (beyond the standard deduction). Below that, the new regime costs less. Few people reach it without both a large HRA exemption and a home loan.
A ₹15 lakh CTC is not a ₹15 lakh salary
If ₹15 lakh is your CTC, your taxable salary is lower. The employer's PF and gratuity come out of the CTC before you are paid. With a typical structure (basic 50% of CTC, PF on the full basic, gratuity included), the tax under the new regime is ₹77,832 and your in-hand pay is about ₹1,00,299 a month. See the full breakup for 15 LPA in-hand salary.
Ways to pay less tax on ₹15 lakh
- Employer NPS (new regime). If your employer moves ₹84,000 of your pay (14% of a ₹6 lakh basic) into NPS, the tax falls from ₹97,500 to ₹84,396. This is one of the few deductions the new regime allows.
- Claim HRA if you rent and choose the old regime. It is often the largest single deduction; see our HRA exemption guide.
- Don't buy products just for 80C. At ₹15 lakh, 80C alone rarely makes the old regime cheaper, so lock-in products bought only for the deduction may not save any tax.
- Check both regimes every year. Salaried taxpayers can choose either when filing the return, whatever they told their employer for TDS.
Work out your own tax
The income tax calculator compares both regimes with your exact deductions and shows your break-even point. For the monthly picture after PF and professional tax, use the in-hand salary calculator, and for the regime choice in more depth, read old vs new tax regime.
Figures are for a resident under 60 with only salary income. Surcharge does not apply below ₹50 lakh.