Tax on ₹18 Lakh Salary FY 2026-27: ₹1,50,800 New Regime

Part of the system: Old vs new regime in 3 steps. Steps, checks and a free printable page.

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Rates checked on 6 October 2026 against the CBDT Tax Reference Tables for the Income-tax Act, 2025 on incometaxindia.gov.in (Tax Rates page, last reviewed 28 September 2026): new-regime slabs under section 202, old-regime slabs, and 4% health and education cess. Every figure on this page was recomputed by hand on 10 October 2026 (docs/calc-tests) and matches the calculator.

Short answer

Under the new regime an ₹18 lakh salary pays ₹1,50,800 in tax for tax year 2026-27, which is ₹12,567 a month. Take off the ₹75,000 standard deduction and ₹17,25,000 is taxable. Slab tax on that is ₹1,45,000 and the 4% cess adds ₹5,800. For the old regime to match, you need ₹6,41,667 of deductions on top of its ₹50,000 standard deduction. Section 123 (old 80C), your own NPS, health insurance and professional tax add up to ₹2,27,500. With ₹2 lakh of home loan interest it is ₹4,27,500. Whatever is left has to come from HRA.

How ₹1,50,800 is worked out

Salary ₹18,00,000 minus the ₹75,000 standard deduction (section 19) leaves ₹17,25,000 of taxable income.
Slab tax: nothing on the first ₹4 lakh, 5% on ₹4 to 8 lakh (₹20,000), 10% on ₹8 to 12 lakh (₹40,000), 15% on ₹12 to 16 lakh (₹60,000) and 20% on the last ₹1,25,000 (₹25,000). Total ₹1,45,000.
No rebate. The section 156 rebate (old 87A) applies only up to ₹12 lakh of taxable income.
Health and education cess at 4% adds ₹5,800. Total tax: ₹1,50,800, or 8.4% of the salary.

Your top slab is 20%, so each extra ₹1,000 of salary costs ₹208 in tax with cess. In the old regime the same ₹1,000 costs ₹312, because old-regime income above ₹10 lakh is taxed at 30%. That gap between 20.8% and 31.2% is why the break-even keeps climbing at this salary.

The break-even rises ₹33,333 for each lakh of salary

Between a ₹16.75 lakh and a ₹20.75 lakh salary, every extra ₹1 lakh adds ₹20,800 to the new-regime tax and ₹31,200 to the old-regime tax. To keep the two equal, the old regime needs another ₹33,333 of deductions, since ₹33,333 at 31.2% is ₹10,400, the difference. Most deductions are fixed amounts, so the old regime slips further behind as pay rises.

Salary	New-regime tax	Break-even deductions	Old regime with ₹2,27,500	Old regime with ₹4,27,500
₹16,00,000	₹1,13,100	₹5,68,750	₹2,17,620	₹1,55,220
₹17,00,000	₹1,30,000	₹6,08,334	₹2,48,820	₹1,86,420
₹18,00,000	₹1,50,800	₹6,41,667	₹2,80,020	₹2,17,620
₹19,00,000	₹1,71,600	₹6,75,000	₹3,11,220	₹2,48,820
₹20,00,000	₹1,92,400	₹7,08,334	₹3,42,420	₹2,80,020

The rise is not the same everywhere. Above a ₹20.75 lakh salary the new regime moves to 25%, and the line climbs only ₹16,667 a lakh. From ₹24.75 lakh both regimes charge 30% and the line stays at ₹8,00,000; the ₹25 lakh page explains that flat stretch.

Deductions the old regime needs to match the new one, ₹16 to ₹20 lakh

Bars drawn to scale. Deductions are on top of the old regime's ₹50,000 standard deduction; age below 60, 4% cess, no surcharge.

How much HRA the old regime needs at ₹18 lakh

HRA exemption is the smallest of three amounts: the HRA your employer pays, your rent minus 10% of basic plus DA, and 50% of basic plus DA (40% outside Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad).

Other deductions you already claim	HRA exemption needed	Basic + DA needed, 50% city	Basic + DA needed, other city
₹2,27,500 (renter, no home loan)	₹4,14,167	₹8,28,334 (46% of salary)	₹10,35,418 (58% of salary)
₹4,27,500 (home loan on a house elsewhere)	₹2,14,167	₹4,28,334 (24%)	₹5,35,418 (30%)

The second row is the one to look at. With a home loan on a house you don't live in, the HRA needed falls to about ₹2.14 lakh, and almost any salary structure has a basic pay large enough for that. Then your rent decides the answer: rent minus 10% of basic has to reach ₹2,14,167.

Employer NPS at ₹18 lakh

Some salary structures include an employer NPS contribution. The new regime deducts it under section 124(1) (old 80CCD(2)) up to 14% of basic plus DA. With a ₹7.2 lakh basic, that is ₹1,00,800. Taxable income falls to ₹16,24,200 and the tax to ₹1,29,830, which is ₹20,970 less. The old regime allows only 10% (₹72,000), so its break-even drops slightly, to ₹6,36,867. NPS money is locked in until 60, with limited exceptions.

What a raise to ₹19 lakh does

₹1 lakh more salary adds ₹20,800 of new-regime tax and ₹31,200 of old-regime tax. Your deductions stay where they were, so the old regime falls ₹10,400 further behind. If you only just beat the line this year, a raise of ₹1 lakh needs another ₹33,333 of deductions to keep the old regime level.

Worked examples

Hyderabad renter: ₹9 lakh basic, rent ₹40,000 a month

Hyderabad is one of the eight 50% cities. HRA allowance ₹4,50,000; rent ₹4,80,000 − ₹90,000 = ₹3,90,000; 50% of basic ₹4,50,000. The exemption is the smallest, ₹3,90,000. Add section 123 ₹1,50,000, own NPS ₹50,000, health insurance ₹25,000 and professional tax ₹2,500: deductions ₹6,17,500, which is ₹24,167 short of the line.

Old regime: ₹18,00,000 − ₹50,000 − ₹6,17,500 = ₹11,32,500 taxable. Tax ₹1,12,500 + ₹39,750 = ₹1,52,250, plus cess = ₹1,58,340. That is ₹7,540 more than the new regime. The rent would have to be about ₹42,000 a month to close the gap.

Chennai renter with a home loan elsewhere: ₹8 lakh basic, rent ₹35,000 a month

HRA allowance ₹4,00,000; rent ₹4,20,000 − ₹80,000 = ₹3,40,000; 50% of basic ₹4,00,000. The exemption is ₹3,40,000. With ₹2 lakh of interest on a home loan for a house in another town, deductions come to ₹7,67,500, which is ₹1,25,833 over the line.

Old regime: ₹9,82,500 taxable, below the 30% band. Tax ₹1,09,000 plus cess = ₹1,13,360. Here the old regime is ₹37,440 lower than the new regime's ₹1,50,800.

Tips and tricks

How we would use it

Questions people ask

How much TDS is cut each month on an ₹18 lakh salary?

About ₹12,567 under the new regime, if your employer spreads the ₹1,50,800 evenly over the year. Under the old regime the employer works it out from the proofs you submit, so the monthly amount can change in the last quarter.

What is the tax on ₹18 lakh in the old regime?

It depends on your deductions. With only the ₹50,000 standard deduction it is ₹3,51,000. With ₹2,27,500 of common deductions it is ₹2,80,020, and with ₹2 lakh of home loan interest as well (₹4,27,500) it is ₹2,17,620.

My ₹18 lakh is CTC. Does this page apply?

Not directly. Employer PF and gratuity inside a CTC are not taxable salary, so your gross salary and your tax are lower. Find the gross with the CTC to in-hand calculator and enter that here.

I am 60 to 79. Is the break-even different?

The new-regime tax is the same at any age, ₹1,50,800. The old regime's basic exemption is ₹3 lakh from 60 instead of ₹2.5 lakh, so the break-even drops to ₹6,33,334.

I earn ₹50,000 of FD interest as well. How much more tax?

₹10,400 under the new regime, at 20.8%. The standard deduction applies only to salary or pension, so all the interest is taxed.

Written by Bulan Sarkar, who checked the results by hand and against a second public calculator. Use it for planning; it isn't tax or investment advice.

Sources

Old vs New Tax Regime Calculator

Tax under both regimes for 2026-27 and the break-even deductions the old regime needs at your income, with a chart from ₹5 lakh to ₹50 lakh.