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Income Tax on ₹5 lakh Salary (FY 2026-27): New vs Old Regime
On a ₹5 lakh salary, income tax is ₹0 a year under the new regime. Compare the old regime with 80C and 80D deductions and see which saves more.
Your age
Old regime deductions (leave 0 if you don't have them)
Both regimes cost the same
₹0
New regime
Old regime
💡 Good to know
- New regime: tax-free up to ₹12 lakh taxable income (₹12.75 lakh salary with the ₹75,000 standard deduction).
- The new regime is the default. Salaried people can pick the old one each year when filing; business income can switch back only once.
- Old regime deductions need proof: rent receipts, 80C investments, insurance premium receipts.
- Senior citizens get a higher basic exemption only in the old regime (₹3 lakh at 60, ₹5 lakh at 80).
FY 2026-27. Rules last checked: October 2026. Special-rate income (capital gains, lottery) is not included. 🔒 Calculated on your device.
✅ Rules last checked:
📚 Official sources: Income Tax Department · Union Budget
We build every tool from the official rules and re-check them when they change. Always confirm with the official source before you rely on a result.
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Income tax on a ₹5 lakh salary: new vs old regime
On a ₹5 lakh salary you pay no income tax under the new regime: after the ₹75,000 standard deduction your taxable income is ₹4,25,000, and the rebate cancels all tax on income up to ₹12 lakh.
At this salary no amount of deductions makes the old regime cheaper than the new one.
| Regime | Tax a year | A month |
|---|---|---|
| New regime | ₹0 | ₹0 |
| Old regime, no deductions | ₹0 | ₹0 |
| Old regime, 80C ₹1.5 lakh + 80D ₹25,000 | ₹0 | ₹0 |
| Old regime, + home loan interest ₹2 lakh + NPS ₹50,000 | ₹0 | ₹0 |
FY 2026-27, below 60, salary income only. Includes 4% cess, and surcharge above ₹50 lakh.
Questions people ask
Which tax regime is better for me?+
Enter your income and your old-regime deductions. If your deductions (80C, HRA, home loan, 80D) are small, the new regime usually wins; with large deductions the old regime can be cheaper.
Is income up to ₹12 lakh tax-free?+
In the new regime, yes: the rebate cancels the tax when taxable income is up to ₹12 lakh. Salaried people also get the ₹75,000 standard deduction, so salary up to ₹12.75 lakh pays no tax.
Can I switch regimes every year?+
Yes, if you have no business income: choose when you file your return. With business income you can leave the new regime only once.