On a ₹18 lakh salary, your income tax for FY 2026-27 is ₹1,50,800 in the new regime, including 4% cess. That is about ₹12,567 a month.
New regime: ₹18 lakh minus the ₹75,000 standard deduction gives taxable income of ₹17,25,000. Slab tax is ₹1,45,000, and 4% cess adds ₹5,800.
| New regime | Old regime | |
|---|---|---|
| Taxable income | ₹17,25,000 | ₹15,50,000 |
| Tax on slabs | ₹1,45,000 | ₹2,77,500 |
| Rebate (87A) | −₹0 | −₹0 |
| Surcharge | ₹0 | ₹0 |
| Cess (4%) | ₹5,800 | ₹11,100 |
| Total tax | ₹1,50,800 | ₹2,88,600 |
| Old-regime deductions (80C, 80D, HRA…) | Old regime tax | New regime tax | Better |
|---|---|---|---|
| None | ₹3,51,000 | ₹1,50,800 | New |
| ₹1,50,000 | ₹3,04,200 | ₹1,50,800 | New |
| ₹3,00,000 | ₹2,57,400 | ₹1,50,800 | New |
| ₹4,50,000 | ₹2,10,600 | ₹1,50,800 | New |
The old regime only wins if your deductions are large. Most salaried people pay less in the new regime.
Rates used: October–December 2026 where a government rate applies. Results are estimates.