On a ₹8 lakh salary, your income tax for FY 2026-27 is nil in the new regime, thanks to the ₹75,000 standard deduction and the 87A rebate.
New regime: ₹8 lakh minus the ₹75,000 standard deduction gives taxable income of ₹7,25,000. Slab tax is ₹16,250, the 87A rebate takes off ₹16,250, and 4% cess adds ₹0.
| New regime | Old regime | |
|---|---|---|
| Taxable income | ₹7,25,000 | ₹5,50,000 |
| Tax on slabs | ₹16,250 | ₹22,500 |
| Rebate (87A) | −₹16,250 | −₹0 |
| Surcharge | ₹0 | ₹0 |
| Cess (4%) | ₹0 | ₹900 |
| Total tax | ₹0 | ₹23,400 |
| Old-regime deductions (80C, 80D, HRA…) | Old regime tax | New regime tax | Better |
|---|---|---|---|
| None | ₹65,000 | ₹0 | New |
| ₹1,50,000 | ₹33,800 | ₹0 | New |
| ₹3,00,000 | ₹0 | ₹0 | New |
| ₹4,50,000 | ₹0 | ₹0 | 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.