Tax calculation on ₹5 lakh (new regime)
- Gross salary: ₹5,00,000
- Less standard deduction: ₹75,000
- Taxable income: ₹4,25,000
- ₹0 – ₹4 L at 0%: ₹0
- ₹4 L – ₹8 L at 5%: ₹1,250
- Less rebate: ₹1,250
- Cess at 4%: ₹0
- Total tax: ₹0
When does the old regime win?
New regime tax on ₹5 lakh: ₹0. Old regime tax with different deductions:
| Old-regime deductions | Old regime tax | Cheaper |
|---|---|---|
| No deductions | ₹0 | New |
| 80C ₹1.5 lakh | ₹0 | New |
| + 80D ₹25,000 + NPS ₹50,000 | ₹0 | New |
| + HRA ₹2 lakh + home loan interest ₹2 lakh | ₹0 | New |
Compared with nearby salaries
Frequently asked questions
How much income tax do I pay on a ₹5 lakh salary?
For FY 2026-27, a ₹5 lakh salary attracts ₹0 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 ₹0.
Which regime is better for a ₹5 lakh salary?
The old regime is already cheaper with no deductions at this salary.
What is the monthly take-home on a ₹5 lakh salary after tax?
About ₹41,667 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 ₹5 lakh salary?
After the ₹75,000 standard deduction your taxable income is ₹4,25,000, which puts your top slab at 5% in the new regime. Your effective tax rate is 0.0%.