On a ₹4 lakh salary you pay no income tax in FY 2026-27 under the new regime. The ₹75,000 standard deduction brings taxable income to ₹3.25 lakh, and the rebate covers all the tax on income up to ₹12 lakh. Under the old regime with ₹1.5 lakh of 80C investments you would pay ₹0.
Tax on ₹4 lakh salary, new regime (FY 2026-27)
₹0
- Monthly salary after tax
- ₹33,333
- Old regime (with 80C)
- ₹0
- Effective tax rate
- 0.0%
New vs old regime on a ₹4 lakh salary
| Option | Taxable income | Total tax | Monthly salary after tax |
|---|---|---|---|
| New regime | ₹3,25,000 | ₹0 | ₹33,333 |
| Old regime, no deductions | ₹3,50,000 | ₹0 | ₹33,333 |
| Old regime with ₹1.5 lakh 80C | ₹2,00,000 | ₹0 | ₹33,333 |
| Old regime with ₹1.5 lakh 80C + ₹2 lakh other deductions | ₹0 | ₹0 | ₹33,333 |
The new regime is better at ₹4 lakh: your tax is nil, so no amount of deductions can make the old regime cheaper.
New regime slab-wise tax on ₹4 lakh
Taxable income is ₹4,00,000 minus the ₹75,000 standard deduction = ₹3,25,000.
| Slab | Income in slab | Rate | Tax |
|---|---|---|---|
| ₹0 to ₹4,00,000 | ₹3,25,000 | 0% | ₹0 |
| Health and education cess (4%) | ₹0 | ||
| Total tax | ₹0 |
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) |
|---|---|---|---|
| ₹3 lakh | ₹0 | ₹0 | ₹25,000 |
| ₹4 lakh | ₹0 | ₹0 | ₹33,333 |
| ₹5 lakh | ₹0 | ₹0 | ₹41,667 |
| ₹6 lakh | ₹0 | ₹0 | ₹50,000 |
| ₹7 lakh | ₹0 | ₹0 | ₹58,333 |
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 ₹4 lakh salary in the new regime?
None. With the ₹75,000 standard deduction your taxable income is ₹3,25,000, and the Section 87A rebate covers tax on income up to ₹12 lakh in FY 2026-27.
Is the old or new regime better for ₹4 lakh?
The new regime is better at ₹4 lakh: your tax is nil, so no amount of deductions can make the old regime cheaper.
What is the monthly salary after tax on ₹4 lakh a year?
About ₹33,333 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