On a ₹20 lakh salary, your income tax for FY 2026-27 is ₹1,92,400 in the new regime, including 4% cess. That is about ₹16,033 a month.
New regime: ₹20 lakh minus the ₹75,000 standard deduction gives taxable income of ₹19,25,000. Slab tax is ₹1,85,000, and 4% cess adds ₹7,400.
| New regime | Old regime | |
|---|---|---|
| Taxable income | ₹19,25,000 | ₹17,50,000 |
| Tax on slabs | ₹1,85,000 | ₹3,37,500 |
| Rebate (87A) | −₹0 | −₹0 |
| Surcharge | ₹0 | ₹0 |
| Cess (4%) | ₹7,400 | ₹13,500 |
| Total tax | ₹1,92,400 | ₹3,51,000 |
| Old-regime deductions (80C, 80D, HRA…) | Old regime tax | New regime tax | Better |
|---|---|---|---|
| None | ₹4,13,400 | ₹1,92,400 | New |
| ₹1,50,000 | ₹3,66,600 | ₹1,92,400 | New |
| ₹3,00,000 | ₹3,19,800 | ₹1,92,400 | New |
| ₹4,50,000 | ₹2,73,000 | ₹1,92,400 | 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.