Income Tax on ₹12 Lakh Salary
Exactly how much income tax you pay on a ₹12 Lakh annual salary in India under the new tax regime for FY 2026-27 (AY 2027-28) — with a full slab-by-slab breakdown and your monthly take-home.
Quick answer
On a ₹12 Lakh salary under the new tax regime for FY 2026-27, you pay no income tax (₹0) — an effective rate of 0%. Your monthly take-home is about ₹1,00,000.
Tax breakdown on ₹12 Lakh
Figures use the new-regime slabs for FY 2026-27, a ₹75,000 standard deduction and the 4% cess — the same logic as our income tax calculator. In-hand is before EPF and professional tax.
How the tax is calculated on ₹12 Lakh
The new regime taxes your income in slabs. After the ₹75,000 standard deduction, your taxable income of ₹11,25,000 is split across these slabs, and each part is taxed at its own rate:
| Income slab | Rate | Tax |
|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,000 – ₹11,25,000 | 10% | ₹32,500 |
| Tax before rebate | ₹52,500 | |
Because your taxable income stays within ₹12,00,000, the Section 87A rebate wipes out this entire amount, so the tax before cess is ₹0. With nothing to add cess to, the total income tax on a ₹12 Lakh salary comes to ₹0.
Old regime vs new regime at ₹12 Lakh
New regime
₹0
₹75,000 standard deduction
Old regime
₹1,63,800
No extra deductions
Assuming no deductions beyond the standard deduction, the new regime saves you ₹1,63,800 on a ₹12 Lakh salary. The old regime can still win if you claim big deductions — full 80C, 80D, HRA and home-loan interest — because it taxes at higher rates but rewards those deductions. If your deductions are modest, the new regime is almost always the cheaper choice.
Adjust the numbers yourself
Change the salary or add old-regime deductions to see how your tax and in-hand pay shift in real time.
Your income
FY 2026–27 · India · below 60 years · salaried
80C, 80D, home-loan interest, HRA etc. The new regime ignores most of these but has a lower rate structure.
The New regime saves you ₹97,500 in tax this year.
New Regime
RecommendedTotal tax payable
₹97,500
Taxable income: ₹14,25,000
Old Regime
Total tax payable
₹1,95,000
Taxable income: ₹12,50,000
Want the full picture?
Compare both regimes side by side and see which one saves you more.
Frequently asked questions
Is a ₹12 Lakh salary taxable?+
A ₹12 Lakh annual salary falls in the taxable range, but under the new tax regime for FY 2026-27 you actually pay ₹0. After the ₹75,000 standard deduction your taxable income is ₹11,25,000, which is within the ₹12,00,000 Section 87A rebate limit — so the tax is fully rebated.
How much income tax do I pay on 12 LPA in the new regime?+
On a ₹12 Lakh salary you pay ₹0 in income tax for FY 2026-27 under the new regime — an effective rate of about 0% of your gross salary.
What is the monthly in-hand salary on ₹12 Lakh per year?+
Your gross monthly salary is roughly ₹1,00,000. After income tax of ₹0 a year, the take-home is about ₹1,00,000 a month. This is before EPF, professional tax and any other payroll deductions your employer applies.
New regime or old regime — which is better for a ₹12 Lakh salary?+
With no deductions beyond the standard deduction, the new regime (₹0) beats the old regime (₹1,63,800) at this income. The old regime only pulls ahead if you claim large deductions such as 80C, 80D, home-loan interest and HRA. Use the calculator below with your actual deductions to confirm.