Income Tax on ₹27 Lakh Salary (FY 2026-27)
On a ₹27 lakh salary in FY 2026-27 the new regime charges ₹3,82,200 and the old regime ₹5,85,000 with ₹1.5 lakh in Section 123 (earlier 80C). The new regime is cheaper by ₹2,02,800. Your last rupee of income falls in the 30% new-regime slab, so each extra ₹1 lakh of salary costs ₹31,200 in tax.
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Only affects the Old Regime exemption limit.
The New Regime saves you ₹2,02,800 per year compared to the other regime.
Old Regime
Includes standard deduction + the deductions you entered above.
Total Tax Payable
₹5,85,000
Effective rate: 21.7%
New Regime
Flat ₹75,000 standard deduction. No 80C/80D/HRA benefit.
Total Tax Payable
₹3,82,200
Effective rate: 14.2%
Smart tax-saving tips
Worked out from your numbers for FY 2026-27 (Tax Year 2026-27).
Save up to
₹2,02,800/yr
The New Regime saves you ₹2,02,800 a year
That's ₹16,900 more in hand every month than the Old Regime (₹3,82,200 vs ₹5,85,000 tax).
NPS would save ₹15,600, but only in the Old Regime
Investing ₹50,000 under Section 124 (earlier 80CCD(1B)) cuts Old Regime tax to ₹5,69,400, yet the New Regime (₹3,82,200) is still cheaper, and it doesn't allow this deduction. Invest in NPS for retirement, not for tax.
Old Regime needs ₹6,50,000 more in deductions to break even
Only if your extra Section 123 (earlier 80C), Section 126 (earlier 80D), NPS, HRA or home-loan claims add up to more than this does switching to the Old Regime pay off.
Ask your employer about NPS under Section 124 (earlier 80CCD(2))
Employer NPS contributions of up to 14% of basic salary are deductible even in the New Regime, and can be restructured out of your CTC.
Estimates for salaried individuals, based only on the deductions entered above. Not investment advice.
New Regime: where your income goes
Annual gross income under the recommended regime.
- Total₹27,00,000
| Breakdown | Old Regime | New Regime |
|---|---|---|
| Taxable Income (Annual) | ₹25,00,000 | ₹26,25,000 |
| Tax Payable (Annual) | ₹5,85,000 | ₹3,82,200 |
| Tax Payable (Monthly) | ₹48,750 | ₹31,850 |
| Take-Home (Annual) | ₹21,15,000 | ₹23,17,800 |
| Take-Home (Monthly) | ₹1,76,250 | ₹1,93,150 |
FY 2026-27 · Income-tax Act, 2025
Old vs new regime on ₹27 lakh
- New regime tax
- ₹3,82,200
- 14.2% of salary
- Old regime tax
- ₹5,85,000
- with ₹1.5 lakh 80C
- Monthly in-hand
- ₹1,93,150
- new regime, before PF and PT
- Break-even deductions
- ₹8,00,000
- for the old regime to match the new
| New regime | Old: no deductions | Old: ₹1.5L Section 123 | |
|---|---|---|---|
| Gross salary | ₹27,00,000 | ₹27,00,000 | ₹27,00,000 |
| Deductions | ₹75,000 | ₹50,000 | ₹2,00,000 |
| Taxable income | ₹26,25,000 | ₹26,50,000 | ₹25,00,000 |
| Rebate / marginal relief | — | — | — |
| Health & education cess (4%) | ₹14,700 | ₹24,300 | ₹22,500 |
| Total tax | ₹3,82,200 | ₹6,31,800 | ₹5,85,000 |
Deductions are the standard deduction (₹75,000 new, ₹50,000 old) plus, in the last column, ₹1,50,000 under Section 123 (earlier 80C). Change the numbers in the calculator above to add HRA, home-loan interest, health insurance or NPS.
New regime
How the ₹26,25,000 of taxable income is taxed
| Slab | Rate | Income in slab | Tax |
|---|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹4,00,000 | ₹40,000 |
| ₹12,00,000 – ₹16,00,000 | 15% | ₹4,00,000 | ₹60,000 |
| ₹16,00,000 – ₹20,00,000 | 20% | ₹4,00,000 | ₹80,000 |
| ₹20,00,000 – ₹24,00,000 | 25% | ₹4,00,000 | ₹1,00,000 |
| Above ₹24,00,000 | 30% | ₹2,25,000 | ₹67,500 |
| Slab tax before rebate and cess | ₹3,67,500 |
Both regimes tax you at 30% at the margin now, so the gap between them is set mainly by the lower slabs and by your deductions. Each extra ₹1 lakh of salary costs about ₹31,200 in the new regime.
FAQ
Frequently asked questions
How much income tax do I pay on a ₹27 lakh salary in FY 2026-27?
Under the new regime you pay ₹3,82,200 (taxable income ₹26,25,000 after the ₹75,000 standard deduction, including ₹14,700 cess). Under the old regime you pay ₹6,31,800 with no deductions, or ₹5,85,000 if you invest ₹1.5 lakh under Section 123 (earlier 80C).
Which tax regime is better for a ₹27 lakh salary?
The new regime, unless your deductions are large. With only ₹1.5 lakh in Section 123 (earlier 80C) it saves ₹2,02,800 a year. The old regime only matches it once your total deductions (beyond the ₹50,000 standard deduction) reach about ₹8,00,000.
What is the monthly in-hand salary on ₹27 lakh?
₹27 lakh a year is ₹2,25,000 a month before tax. After income tax it is about ₹1,93,150 a month under the new regime, or ₹1,76,250 under the old regime with ₹1.5 lakh in Section 123 (earlier 80C). Employee PF and professional tax reduce it further; the salary calculator works these out from your CTC.
Compare
Tax at nearby salaries
- ₹24 lakh ₹2,92,500
- ₹25 lakh ₹3,19,800
- ₹26 lakh ₹3,51,000
- ₹28 lakh ₹4,13,400
- ₹29 lakh ₹4,44,600
- ₹30 lakh ₹4,75,800
Want your exact in-hand pay with PF, gratuity and professional tax? Use the CTC to in-hand salary calculator. See state-wise slabs on the professional tax page.
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