Tax calculation on ₹18 lakh (new regime)
- Gross salary: ₹18,00,000
- Less standard deduction: ₹75,000
- Taxable income: ₹17,25,000
- ₹0 – ₹4 L at 0%: ₹0
- ₹4 L – ₹8 L at 5%: ₹20,000
- ₹8 L – ₹12 L at 10%: ₹40,000
- ₹12 L – ₹16 L at 15%: ₹60,000
- ₹16 L – ₹20 L at 20%: ₹25,000
- Cess at 4%: ₹5,800
- Total tax: ₹1,50,800
When does the old regime win?
New regime tax on ₹18 lakh: ₹1,50,800. Old regime tax with different deductions:
| Old-regime deductions | Old regime tax | Cheaper |
|---|---|---|
| No deductions | ₹3,50,220 | New |
| 80C ₹1.5 lakh | ₹3,03,420 | New |
| + 80D ₹25,000 + NPS ₹50,000 | ₹2,80,020 | New |
| + HRA ₹2 lakh + home loan interest ₹2 lakh | ₹1,55,220 | New |
Break-even: the old regime needs about ₹6,42,000 of deductions to match the new regime at this salary.
Compared with nearby salaries
New regime tax and old regime tax with 80C and 80D:
| Salary | New regime | Old regime |
|---|---|---|
| ₹15 lakh | ₹97,500 | ₹2,02,020 |
| ₹16 lakh | ₹1,13,100 | ₹2,33,220 |
| ₹17 lakh | ₹1,30,000 | ₹2,64,420 |
| ₹18 lakh | ₹1,50,800 | ₹2,95,620 |
| ₹19 lakh | ₹1,71,600 | ₹3,26,820 |
| ₹20 lakh | ₹1,92,400 | ₹3,58,020 |
| ₹22 lakh | ₹2,40,500 | ₹4,20,420 |
See what you take home each month on the ₹18 lakh CTC salary page.
Frequently asked questions
How much income tax do I pay on a ₹18 lakh salary?
For FY 2026-27, a ₹18 lakh salary attracts ₹1,50,800 of tax in the new regime, including 4% cess. In the old regime, with ₹1.5 lakh under 80C, ₹25,000 health insurance and ₹2,500 professional tax, the tax is ₹2,95,620.
Which regime is better for a ₹18 lakh salary?
The new regime, unless your old-regime deductions (beyond the standard deduction) exceed about ₹6,42,000.
What is the monthly take-home on a ₹18 lakh salary after tax?
About ₹1,37,433 a month after income tax in the new regime. PF and professional tax reduce it further; see the in-hand salary page for the full picture.
What is my tax slab on a ₹18 lakh salary?
After the ₹75,000 standard deduction your taxable income is ₹17,25,000, which puts your top slab at 20% in the new regime. Your effective tax rate is 8.4%.