In short
With a ₹12,00,000 salary the new regime costs ₹0. The old regime costs ₹1,63,800 without deductions and only becomes cheaper once your deductions pass about ₹6,50,000. For most people at this salary the new regime is the better choice.
How we calculated
Salary or pension of a resident individual under 60, for FY 2026-27 (1 April 2026 to 31 March 2027). New regime: standard deduction of ₹75,000, rates of 5% to 30%, no tax on taxable income up to ₹12 lakh, and 4% health and education cess. Old regime: standard deduction of ₹50,000, rates of 5% to 30%, no tax on taxable income up to ₹5 lakh, and the deductions shown.
Income taxed at special rates, such as capital gains, is not included.
For your own figures, use the income tax calculator: old vs new regime .
Frequently asked questions
How much income tax do I pay on a ₹12 lakh salary?
Nothing in the new regime for FY 2026-27. After the ₹75,000 standard deduction your taxable income is ₹11,25,000, and a rebate cancels the tax on taxable income of up to ₹12 lakh.
Old or new regime for a ₹12 lakh salary?
The new regime, unless your old-regime deductions (80C, health insurance, HRA exemption, home-loan interest and similar) add up to more than about ₹6,50,000 a year.
What is the monthly in-hand salary on ₹12 lakh?
After income tax in the new regime about ₹1,00,000 a month. Your payslip is lower when your employee PF contribution (usually 12% of basic pay plus DA) and professional tax (in states that levy it) are deducted, and when part of your CTC is employer PF or gratuity.
Income tax on other salaries
Note
This page gives estimates for information only and is not tax advice. Your actual tax depends on your full income and circumstances.
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