On a salary of ₹30 lakh in FY 2026-27 (AY 2027-28), you pay ₹4,75,800 under the New regime versus ₹7,25,400 under the Old regime (standard deduction only). The New regime saves you ₹2,49,600. The Old regime becomes cheaper only if your total deductions - 80C + 80D + NPS + home-loan interest + HRA combined - exceed ₹7,99,985.
₹30 lakh salary - tax at a glance
| Particulars | Amount |
|---|---|
| Gross salary | ₹30,00,000 |
| Tax - New regime (incl. cess) | ₹4,75,800 |
| Tax - Old regime, standard deduction only | ₹7,25,400 |
| Recommended regime | New (saves ₹2,49,600) |
| Break-even deduction (Old beats New above this) | ₹7,99,985 |
| Monthly in-hand (New regime) | ₹2,10,350 |
How the tax is calculated (New regime)
Taxable income after the ₹75,000 standard deduction = ₹29,25,000. It falls into these slabs:
| Slab · rate | Tax |
|---|---|
| Up to ₹4,00,000 · 0% | ₹0 |
| ₹4,00,000 – ₹8,00,000 · 5% | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 · 10% | ₹40,000 |
| ₹12,00,000 – ₹16,00,000 · 15% | ₹60,000 |
| ₹16,00,000 – ₹20,00,000 · 20% | ₹80,000 |
| ₹20,00,000 – ₹24,00,000 · 25% | ₹1,00,000 |
| ₹24,00,000 – ₹29,25,000 · 30% | ₹1,57,500 |
| Tax on slabs | ₹4,57,500 |
| Health & Education cess (4%) | ₹18,300 |
| Total tax (New regime) | ₹4,75,800 |
Should you pick the Old or New regime at ₹30 lakh?
For most salaried people at ₹30 lakh the new regime wins because reaching ₹7,99,985 in deductions needs a home loan plus rent plus a maxed 80C - uncommon without a housing EMI. If you have all of those, run your exact figures below.
₹30 lakh: firmly in the 30% band, and why the marginal rate matters now
With taxable income of ₹29,25,000 you are ₹5,25,000 above the ₹24 lakh threshold where the top 30% rate begins. Your total tax is ₹4,75,800 - an effective rate of 15.9% - but the number to keep in mind from here on is the marginal rate of 31.2% (30% plus cess). Every additional rupee of salary, bonus or FD interest loses 31.2 paise, and every rupee you can legitimately keep out of taxable income saves the same.
That reframes decisions that did not matter at ₹12 lakh. A ₹1 lakh performance bonus is ₹68,800 in hand. Moving ₹5 lakh from an FD earning 7% to a debt fund that you do not redeem for years saves ₹10,920 a year in tax on the interest. Under the FY 2024-25 slabs this salary cost ₹5,90,200; the ₹1,14,400 you no longer pay is the maximum benefit anyone got from Budget 2025's slab changes.
The old regime needs ₹7,99,985 of deductions to compete
The break-even is ₹7,99,985. The standard "full kit" of ₹3.75 lakh (80C, ₹2 lakh home-loan interest, 80D, NPS 1B) only gets the old regime to ₹6,08,400 - still ₹1,32,600 worse than the new regime. Adding a ₹6 lakh metro HRA exemption (₹12 lakh basic, ₹6 lakh HRA, ₹7.5 lakh rent - about ₹62,000 a month) brings it to ₹4,21,200, which finally edges the new regime by ₹54,600.
So the old regime can win at ₹30 lakh, but the profile is narrow: renting an expensive flat in one of the four metro cities while also paying interest on a home loan, and maxing every other deduction. If that is you, the saving is worth the paperwork. If you own the home you live in, the new regime wins and there is nothing to optimise.
What actually reduces tax at ₹30 lakh in the new regime
| Lever | Amount | Tax saved (at 31.2%) | Catch |
|---|---|---|---|
| Employer NPS, 14% of ₹12 lakh basic | ₹1,68,000 | ₹52,420 | Locked till 60; needs HR to restructure CTC |
| Employer NPS, 10% of basic | ₹1,20,000 | ₹37,440 | Same, at the more common employer rate |
| Equity LTCG up to ₹1.25 lakh a year | ₹1,25,000 | ₹15,625 | Book gains each year to use the exemption; requires selling and re-buying |
| Interest in PPF / Sukanya instead of FD | ₹35,000 (on ₹5 lakh at 7%) | ₹10,920 | 15-year lock-in; ₹1.5 lakh annual cap |
Employer NPS is the only large one. With it, monthly take-home moves from ₹2,10,350 to about ₹2,14,700 while ₹14,000 a month goes into your retirement account - the closest thing the new regime has to a free lunch. Note that surcharge does not apply yet: it starts when taxable income crosses ₹50 lakh, so a ₹30 lakh earner has room to grow before that becomes a concern.
Your real tax depends on your 80C, HRA, NPS and home-loan interest. Add them and compare both regimes in seconds.
Calculate your exact tax →Frequently asked questions
How much income tax on a ₹30 lakh salary in FY 2026-27?
Under the new regime you pay ₹4,75,800 on a ₹30 lakh salary (after the ₹75,000 standard deduction). Under the old regime with only the standard deduction it is ₹7,25,400.
Which tax regime is better for a ₹30 lakh salary?
The new regime, unless your total deductions exceed ₹7,99,985. Below that, the new regime is cheaper by ₹2,49,600.
What is the monthly in-hand for a ₹30 lakh salary?
About ₹2,10,350 per month under the new regime, before any employer PF or other deductions.
What is the tax on a ₹30 lakh salary in FY 2026-27?
₹4,75,800 under the new regime (₹4,57,500 slab tax plus 4% cess), an effective rate of 15.9%. Monthly in-hand is about ₹2,10,350 before PF. The old regime with only the standard deduction charges ₹7,25,400.
Is there surcharge on a ₹30 lakh salary?
No. Surcharge begins when taxable income exceeds ₹50 lakh. At ₹30 lakh you pay slab tax plus 4% cess only.
How much does employer NPS save at ₹30 lakh?
At the 31.2% marginal rate, a 14% employer NPS contribution on a ₹12 lakh basic (₹1,68,000) saves ₹52,420, reducing tax from ₹4,75,800 to ₹4,23,380.