Income tax on ₹5 lakh salary
Rules for FY 2026-27 · Checked 24 October 2026
On a ₹5 lakh salary you pay no income tax in the new regime for FY 2026-27. The old regime costs ₹0 with no deductions, or ₹0 with ₹1.5 lakh of 80C and ₹25,000 of 80D.
- Tax a year (new)₹00% of salary
- Tax a month₹0Deducted as TDS
- Old regime, 80C + 80D₹0Cheaper
- You keep₹5LAfter income tax
How the new regime tax is worked out
| Step | Amount |
|---|---|
| Gross salary | ₹5,00,000 |
| Standard deduction | − ₹75,000 |
| Taxable income | ₹4,25,000 |
| 0 – 4,00,000 at 0% | ₹0 |
| 4,00,000 – 4,25,000 at 5% | ₹1,250 |
| Rebate (income up to ₹12 lakh) | − ₹1,250 |
| Cess (4%) | ₹0 |
| Total tax | ₹0 |
Old regime on a ₹5 lakh salary
| Deductions claimed | Taxable income | Tax |
|---|---|---|
| Standard deduction only | ₹4,50,000 | ₹0 |
| Plus 80C ₹1,50,000, 80D ₹25,000, professional tax | ₹2,72,600 | ₹0 |
Neither regime charges tax at this salary.
Tax on nearby salaries
Add your own deductions
Enter your HRA, investments and other income to see your exact tax under both regimes.
Both regimes cost ₹0 for FY 2026-27.
- Your tax is zero in the new regime.
- Your taxable income is under ₹12 lakh, so the ₹1,250 rebate cancels the tax.
- You keep₹5,00,000
- Income tax₹0
How new regime tax adds up
- Gross income
- ₹5,00,000
- Standard deduction
- − ₹75,000
- Taxable income
- ₹4,25,000
| Income slab | Rate | Tax |
|---|---|---|
| 0 – 4,00,000 | 0% | ₹0 |
| 4,00,000 – 4,25,000 | 5% | ₹1,250 |
- Tax on slabs
- ₹1,250
- Rebate
- − ₹1,250
- Health and education cess (4%)
- ₹0
- Total tax (0% of income)
- ₹0
Resident individual, slab-rate income only. Capital gains are taxed separately. See the old vs new regime guide for how to choose.
Frequently asked questions
How much tax do I pay on a ₹5 lakh salary?
Nothing in the new regime for FY 2026-27. After the ₹75,000 standard deduction your taxable income is ₹12 lakh or less, so the rebate cancels the tax.
Which tax regime is better for a ₹5 lakh salary?
Either: neither regime charges any tax at this salary.
What is the taxable income on a ₹5 lakh salary?
₹4,25,000 in the new regime, after the ₹75,000 standard deduction. In the old regime it is ₹4,50,000 before any other deduction.