1How much tax do I pay on a Rs 18 lakh salary?
About Rs 1,50,800 in the new regime — Rs 1,45,000 of slab tax on Rs 17,25,000 taxable (after the Rs 75,000 standard deduction) plus 4% cess.
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ArticleAt Rs 18 lakh part of your income reaches the 20% slab, but the new regime's wide lower bands keep the overall rate reasonable. Here's the breakdown. Figures are for the new regime, salaried, with no other income; your actual tax depends on your full situation.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
On a Rs 18 lakh salary the new-regime tax is about Rs 1,50,800. Here's the slab-by-slab breakdown and the levers to bring it down.
Under the new regime, the Rs 75,000 standard deduction brings a Rs 18 lakh salary to Rs 17,25,000 taxable. The slabs apply: 5% on Rs 4-8 lakh (Rs 20,000), 10% on Rs 8-12 lakh (Rs 40,000), 15% on Rs 12-16 lakh (Rs 60,000), and 20% on the Rs 1,25,000 from Rs 16-17.25 lakh (Rs 25,000). That totals Rs 1,45,000, plus 4% cess of Rs 5,800 — about Rs 1,50,800.
At Rs 18 lakh, roughly Rs 1,50,800 of tax is under 9% of salary, because only a small slice reaches the 20% slab while the lower bands shelter the rest. The new regime keeps mid-to-high salaries at a moderate effective rate.
The employer's NPS contribution under 80CCD(2) is deductible even in the new regime — up to 10% of salary (14% for government employees). At Rs 18 lakh this is a meaningful deduction.
Full 80C, the Rs 50,000 NPS, 80D, significant HRA and home-loan interest up to Rs 2,00,000 can bring the old-regime tax below the new regime's roughly Rs 1,50,800. Compute both before deciding.
Bonus, interest, rent or capital gains stack on top. If tax after salary TDS will cross Rs 10,000 beyond what's deducted, top up via advance tax to avoid 234B/234C interest.
About Rs 1,50,800 in the new regime — Rs 1,45,000 of slab tax on Rs 17,25,000 taxable (after the Rs 75,000 standard deduction) plus 4% cess.
Under 9% in the new regime — roughly Rs 1,50,800 on Rs 18 lakh — because only a small slice reaches the 20% slab.
Employer NPS under 80CCD(2) helps in the new regime; the old regime can win with full 80C, NPS, 80D, HRA and home-loan interest. Compare both on your numbers.
Earning around Rs 18 lakh? Write to the firm and we'll compare both regimes and structure your package to cut the tax.