New vs old regime, monthly TDS, and the deductions you would need for the old regime to win.
Which regime is better on 5 lakh?
The old regime is already cheaper with no extra deductions.
With typical deductions of ₹1.75 lakh, the new regime saves you ₹0 a year.
How the new-regime tax is calculated
Taxable income = ₹5,00,000 − ₹75,000 standard deduction = ₹4,25,000. Since this is within ₹12 lakh, the full tax is cancelled by the section 87A rebate (up to ₹60,000).
Plan your take-home pay with the salary calculator, or see in-hand salary by CTC.
Tax on nearby salaries
Estimates for resident individuals below 60 with salary income for FY 2025-26 (AY 2026-27). Excludes capital gains and other special-rate income. Consult a tax professional before filing.
Frequently asked questions
How much tax do I pay on a 5 lakh salary?
Under the new regime for FY 2025-26, tax on a ₹5,00,000 salary is ₹0 including cess. Under the old regime it is ₹0 with only the standard deduction, or ₹0 with ₹1.75 lakh of 80C and 80D deductions.
Is 5 lakh salary tax-free in the new regime?
Yes. After the ₹75,000 standard deduction, taxable income is ₹4,25,000, which is within ₹12 lakh, so the section 87A rebate makes the tax zero.
Should I choose the old or new regime on 5 lakh?
The old regime is better even without extra deductions.