Tax on ₹18 Lakh Salary: New vs Old Tax Regime (FY 2025-26)
Earning ₹18 Lakhs (18 LPA) puts you in the higher tax bracket. With the New Tax Regime (FY 2025-26), income above ₹15 Lakhs is taxed at 30%. However, the slab structure still offers significant relief compared to the Old Regime, which applies the 30% rate on everything above ₹10 Lakhs.
For a ₹18 Lakh salary, the New Tax Regime is the clear winner. Your total tax will be approx ₹2,15,800.
Check Your Specific Case:
Includes 80C, 80D, HRA, Home Loan Interest etc.
New Regime saves you ₹1,35,200 🎉
Monthly In-Hand Breakdown
| Component | New Regime | Old Regime |
|---|---|---|
| Gross Salary | ₹1,50,000 | ₹1,50,000 |
| Less: PF (Est.) | - ₹9,000 | - ₹9,000 |
| Less: Prof Tax | - ₹200 | - ₹200 |
| Less: TDS | - ₹17,983 | - ₹29,250 |
| In-Hand Salary | ₹1,22,817 | ₹1,11,550 |
*PF is assumed at 12% of Basic Salary (Basic assumed as 50% of CTC).
Where Does Your ₹18,00,000 Go?
Disposable income.
New Regime Tax.
Compulsory savings.
Tax Calculation (New Regime)
Taxable Income: ₹18,00,000 - ₹75,000 = ₹17,25,000.
| Slab | Rate | Tax |
|---|---|---|
| 0 - 3L | Nil | 0 |
| 3L - 7L | 5% | ₹20,000 |
| 7L - 10L | 10% | ₹30,000 |
| 10L - 12L | 15% | ₹30,000 |
| 12L - 15L | 20% | ₹60,000 |
| 15L - 17.25L | 30% | ₹67,500 |
| Total + Cess(4%) | - | ₹2,15,800 |
The Break-Even Point
To benefit from the Old Regime, you need to claim total deductions greater than:
₹4,85,000
This requires significant deductions like maxing out 80C, 80D, NPS, and having a Home Loan Interest claim of ₹2 Lakhs plus HRA.
Conclusion
For a ₹18 Lakh salary, the New Tax Regime is the most efficient option. It saves you ~₹1.35 Lakhs compared to the Old Regime without needing any investment proofs.
Fincado Research Team
Fact CheckedOur analysis is built on deep-dive research into RBI Benchmarks and lender-specific disclosures. We verify every interest rate and fee structure against real-world borrower approvals to ensure the highest level of accuracy for Indian home buyers.
Calculations are based on income tax slabs for FY 2025-26 applicable to resident individuals below 60 years.