Income tax on a ₹21 lakh salary is ₹2,14,500 under the new regime for FY 2026-27, including 4% cess. That is about ₹17,875 a month, leaving ₹1,57,125 of monthly salary after tax. Under the old regime with ₹1.5 lakh of 80C investments the tax would be ₹3,97,800.
Tax on ₹21 lakh salary, new regime (FY 2026-27)
₹2,14,500
- Monthly salary after tax
- ₹1,57,125
- Old regime (with 80C)
- ₹3,97,800
- Effective tax rate
- 10.2%
New vs old regime on a ₹21 lakh salary
| Option | Taxable income | Total tax | Monthly salary after tax |
|---|---|---|---|
| New regime | ₹20,25,000 | ₹2,14,500 | ₹1,57,125 |
| Old regime, no deductions | ₹20,50,000 | ₹4,44,600 | ₹1,37,950 |
| Old regime with ₹1.5 lakh 80C | ₹19,00,000 | ₹3,97,800 | ₹1,41,850 |
| Old regime with ₹1.5 lakh 80C + ₹2 lakh other deductions | ₹17,00,000 | ₹3,35,400 | ₹1,47,050 |
The new regime is cheaper for most people at ₹21 lakh. The old regime only wins if your deductions (80C, 80D, HRA exemption, home loan interest and so on, on top of the ₹50,000 standard deduction) add up to more than about ₹7.38 lakh.
New regime slab-wise tax on ₹21 lakh
Taxable income is ₹21,00,000 minus the ₹75,000 standard deduction = ₹20,25,000.
| Slab | Income in slab | Rate | Tax |
|---|---|---|---|
| ₹0 to ₹4,00,000 | ₹4,00,000 | 0% | ₹0 |
| ₹4,00,000 to ₹8,00,000 | ₹4,00,000 | 5% | ₹20,000 |
| ₹8,00,000 to ₹12,00,000 | ₹4,00,000 | 10% | ₹40,000 |
| ₹12,00,000 to ₹16,00,000 | ₹4,00,000 | 15% | ₹60,000 |
| ₹16,00,000 to ₹20,00,000 | ₹4,00,000 | 20% | ₹80,000 |
| ₹20,00,000 to ₹24,00,000 | ₹25,000 | 25% | ₹6,250 |
| Health and education cess (4%) | ₹8,250 | ||
| Total tax | ₹2,14,500 |
Your monthly in-hand pay will also be reduced by employee PF (usually 12% of basic pay) and professional tax where your state charges it, so it is usually a little lower than the after-tax figure above.
Compare nearby salaries
| Salary | New regime tax | Old regime (80C) | Monthly after tax (new) |
|---|---|---|---|
| ₹18 lakh | ₹1,50,800 | ₹3,04,200 | ₹1,37,433 |
| ₹19 lakh | ₹1,71,600 | ₹3,35,400 | ₹1,44,033 |
| ₹20 lakh | ₹1,92,400 | ₹3,66,600 | ₹1,50,633 |
| ₹21 lakh | ₹2,14,500 | ₹3,97,800 | ₹1,57,125 |
| ₹22 lakh | ₹2,40,500 | ₹4,29,000 | ₹1,63,292 |
| ₹23 lakh | ₹2,66,500 | ₹4,60,200 | ₹1,69,458 |
| ₹24 lakh | ₹2,92,500 | ₹4,91,400 | ₹1,75,625 |
Change the numbers
Enter your own deductions, age and employer NPS to compare both regimes.
Frequently asked questions
How much tax do I pay on a ₹21 lakh salary in the new regime?
You pay ₹2,14,500 including 4% cess in FY 2026-27, on taxable income of ₹20,25,000 after the ₹75,000 standard deduction. Your effective tax rate is 10.2%.
Is the old or new regime better for ₹21 lakh?
The new regime is cheaper for most people at ₹21 lakh. The old regime only wins if your deductions (80C, 80D, HRA exemption, home loan interest and so on, on top of the ₹50,000 standard deduction) add up to more than about ₹7.38 lakh.
What is the monthly salary after tax on ₹21 lakh a year?
About ₹1,57,125 a month under the new regime, before employee PF and professional tax.
FY 2026-27 (AY 2027-28), resident individual below 60 with salary income. Excludes capital gains and other specially taxed income. An estimate, not tax advice. Related: Income tax for all salaries · income tax calculator · HRA exemption calculator