Info
AY 2026-27 (FY 2025-26). New-regime slabs reflect Budget 2025; old-regime slabs unchanged. Last reviewed 7 May 2026.
A ₹15 lakh salary is the most common decision point for the regime question. Below ₹12.75 lakh, the new regime's 87A rebate makes the answer trivial — zero tax. Above ₹25 lakh, the surcharge ladder and stacked deductions get specific. The ₹15 lakh band is where the comparison actually demands real numbers, because the profile of who you are — renter, home-owner, both, neither — flips the answer by tens of thousands.
This guide walks four common ₹15 LPA profiles through both regimes and shows where the line actually sits.
The base case — only standard deduction, no investments
A salaried employee on ₹15 lakh with no HRA claim, no investments under 80C, and no health insurance:
| Component | Old regime | New regime |
|---|---|---|
| Gross salary | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | (₹50,000) | (₹75,000) |
| Other deductions | — | — |
| Taxable income | ₹14,50,000 | ₹14,25,000 |
| Slab tax | ₹2,47,500 | ₹93,750 |
| 4% cess | ₹9,900 | ₹3,750 |
| Tax payable | ₹2,57,400 | ₹97,500 |
The new regime wins by ₹1,59,900 — almost ₹1.6 lakh per year. With no investments and no rent paid to claim, the old regime is structurally worse at this income.
The realistic floor — basic 80C + 80D, no HRA, no home loan
Most salaried Indians have at least EPF (which automatically fills part of 80C) and some health insurance. A typical "I'm not optimising" profile:
| Old regime | New regime | |
|---|---|---|
| Gross | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | (₹50,000) | (₹75,000) |
| 80C (EPF + ELSS) | (₹1,50,000) | — |
| 80D (self + parents) | (₹25,000) | — |
| Taxable | ₹12,75,000 | ₹14,25,000 |
| Slab tax | ₹1,95,000 | ₹93,750 |
| 4% cess | ₹7,800 | ₹3,750 |
| Tax payable | ₹2,02,800 | ₹97,500 |
New regime wins by ~₹1,05,300. The full ₹1.75L of deductions on the old side reduces tax by less than the new regime's broader slabs save anyway.
The renter — HRA + 80C + 80D, no home loan
A Bangalore engineer paying ₹35,000/month rent. Basic ₹7.5L (50% of CTC), HRA ₹3.75L. Annual rent ₹4.2L. Bangalore is non-metro for HRA, so the third leg of the formula is 40% of basic.
HRA exemption (lowest of three): min(₹3.75L actual, ₹4.2L − ₹0.75L = ₹3.45L, 40% × ₹7.5L = ₹3L) = ₹3L.
| Old regime | New regime | |
|---|---|---|
| Gross | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | (₹50,000) | (₹75,000) |
| HRA exemption | (₹3,00,000) | — (HRA fully taxable) |
| 80C | (₹1,50,000) | — |
| 80D | (₹25,000) | — |
| Taxable | ₹9,75,000 | ₹14,25,000 |
| Slab tax | ₹1,07,500 | ₹93,750 |
| 4% cess | ₹4,300 | ₹3,750 |
| Tax payable | ₹1,11,800 | ₹97,500 |
New regime still wins by ~₹14,300 — even with a ₹3L HRA exemption. The structural saving from the wider slabs outweighs HRA at this income.
This is the result most renters in 2026 don't expect. Until Budget 2024 widened the slabs and Budget 2025 lifted the rebate to ₹12L, this comparison flipped — old regime won. At AY 2026-27 it does not.
The home-owner — full 80C + 80D + Section 24(b), no HRA
A homeowner with a ₹50L self-occupied loan accruing roughly ₹4L of interest in the year (₹2L claimable under Section 24(b)). Basic 80C also fills with EPF + principal repayment.
| Old regime | New regime | |
|---|---|---|
| Gross | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | (₹50,000) | (₹75,000) |
| 80C | (₹1,50,000) | — |
| 80D | (₹25,000) | — |
| 24(b) home-loan interest | (₹2,00,000) | — |
| Taxable | ₹10,75,000 | ₹14,25,000 |
| Slab tax | ₹1,35,000 | ₹93,750 |
| 4% cess | ₹5,400 | ₹3,750 |
| Tax payable | ₹1,40,400 | ₹97,500 |
New regime still wins by ~₹42,900. Even ₹3.75L of stacked deductions can't overcome the new regime's structural advantage at ₹15 LPA.
The full stack — HRA + 80C + 80D + home-loan interest
A homeowner who rents in another city for work. Both Section 10(13A) HRA and Section 24(b) interest are claimable simultaneously under the old regime.
| Old regime | New regime | |
|---|---|---|
| Gross | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | (₹50,000) | (₹75,000) |
| HRA exemption | (₹1,50,000) | — |
| 80C | (₹1,50,000) | — |
| 80D | (₹25,000) | — |
| 24(b) home-loan interest | (₹2,00,000) | — |
| Taxable | ₹9,25,000 | ₹14,25,000 |
| Slab tax | ₹97,500 | ₹93,750 |
| 4% cess | ₹3,900 | ₹3,750 |
| Tax payable | ₹1,01,400 | ₹97,500 |
The old regime barely wins by ~₹3,900 — under ₹400 per month. At this margin, a single-percentage-point change in any input flips the verdict. Adding ₹50,000 of NPS under 80CCD(1B) on the old side, available only in the old regime, swings the gap by another ~₹15,000 in favour of the old regime — making the choice clearer.
Verify with your actual salary structure
Where the break-even sits at ₹15 LPA
Solving for the deduction stack at which old-regime tax equals the new-regime ₹97,500:
- Required old-regime taxable income: ~₹9,06,000
- Implied total deductions (from gross ₹15L): ~₹5,44,000, including the ₹50K standard deduction.
Profiles that clear this line require, broadly, all of: HRA on real rent in a metro or near-metro, full 80C, 80D for self and parents, and active home-loan interest near ₹2L. Drop any one and the new regime overtakes.
What this means for your decision
- No active deductions or only basic EPF — new regime, no contest.
- Renter only — new regime, by ~₹14,000.
- Home-owner only — new regime, by ~₹43,000.
- HRA + home loan + full 80C — old regime by a hair (~₹4,000); add NPS 80CCD(1B) to widen the gap.
The 80CCD(1B) lever is one of the few places the old regime still has a non-trivial lead. For more on that and the new regime's surviving 80CCD(2) employer NPS, see Section 80CCD(2): the only deduction left in the new regime.
Warning
Numbers above use 2026-27 slab assumptions and exclude surcharge (which doesn't apply below ₹50 lakh). They also exclude special-rate income — capital gains, lottery, crypto — which are taxed independently of the slab regime. Run your full payroll through the salary tax calculator before electing a regime.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
What is the income tax on ₹15 lakh salary in 2026?
Under the AY 2026-27 new regime with no investments and only the ₹75,000 standard deduction, tax on ₹15 lakh gross salary is approximately ₹97,500 (including 4% cess). Under the old regime with basic ₹1.5L 80C and ₹25K 80D, tax is approximately ₹2,02,800. The new regime wins by ~₹1,05,300.
Should I choose old or new regime for ₹15 LPA?
For most ₹15 LPA profiles, the new regime is comfortably better. Only when HRA exemption (~₹1.5L), full 80C (₹1.5L), 80D (₹25K), and Section 24(b) home-loan interest (₹2L) are all real — combining to roughly ₹5.5L+ of deductions — does the old regime narrowly overtake. If any one of those is missing, the new regime wins.
How much tax can I save by switching to the new regime at ₹15L?
Most ₹15L profiles save between ₹40,000 and ₹1,05,000 per year by being on the new regime. The exact figure depends on your deduction profile: a renter without a home loan saves ~₹58K, a home-owner without HRA saves ~₹43K, and a profile without either deduction saves ~₹1.05L.