How much income tax on a Rs 8 lakh salary

A Rs 8 lakh salary is fully tax-free in the new regime, but the old regime would tax it unless you have deductions — a clear example of why the regime choice matters. Here's the breakdown. Figures assume salary is your only income; your actual tax depends on your full situation.

Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13

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1. Zero tax in the new regime
2. The old regime would tax it
3. This is why the new regime suits most people
4. The old regime can still close the gap — but rarely beats zero
5. Declare your regime to your employer
Common questions

Quick answer

A Rs 8 lakh salary is zero tax in the new regime, but taxable in the old regime without deductions. Here's the comparison.

1. Zero tax in the new regime

Under the new regime, the 87A rebate makes tax nil up to Rs 12,00,000 of total income, so a Rs 8 lakh salary falls comfortably in the tax-free band. With the Rs 75,000 standard deduction, the tax is zero.

2. The old regime would tax it

In the old regime, an Rs 8 lakh salary (after the Rs 50,000 standard deduction) leaves Rs 7,50,000 taxable, which faces tax of around Rs 62,500 before any deductions — because the old-regime rebate only reaches Rs 5,00,000. You'd need 80C and other deductions to reduce it.

3. This is why the new regime suits most people

The Rs 8 lakh level shows the new regime's advantage clearly: zero tax automatically, with nothing to invest, versus a real tax bill in the old regime unless you actively claim deductions. For most people at this income, the new regime wins.

4. The old regime can still close the gap — but rarely beats zero

If you have a home loan, significant rent (HRA) and full 80C, the old regime's deductions could bring its tax down — but matching the new regime's automatic zero at Rs 8 lakh is hard. It's usually only worth the old regime here if you'd claim those deductions anyway.

5. Declare your regime to your employer

To enjoy the zero liability through the year rather than as a refund, tell payroll you're on the new regime so unnecessary TDS isn't deducted.

Common questions

1Is a Rs 8 lakh salary taxable?

Not in the new regime — it's zero , because the 87A rebate makes tax nil up to Rs 12,00,000. In the old regime it would be taxable (around Rs 62,500 before deductions).

2Which regime is better for a Rs 8 lakh salary?

The new regime — it gives zero tax automatically. The old regime taxes Rs 8 lakh unless you claim 80C, HRA and other deductions, and even then rarely beats zero.

3How can I pay no tax on a Rs 8 lakh salary?

Choose the new regime — it's automatically tax-free at this level. No investment is needed; just ensure your employer applies the new regime so TDS isn't over-deducted.

Want zero tax confirmed on your Rs 8 lakh salary? Write to the firm and we'll check your regime and TDS.