Income Tax on ₹18 Lakh Salary (New vs Old Regime)
Complete tax ledger, deduction breakdown, and monthly TDS computation for an annual income of ₹18,00,000.
Monthly TDS deduction: ₹17,983/mo
Monthly TDS deduction: ₹29,250/mo
Slab-wise Tax Computation (New Regime)
| Slab Bracket | Tax Rate | Taxable in Bracket | Tax Amount |
|---|---|---|---|
| ₹1 – ₹3,00,000 | 0% | ₹3,00,000 | ₹0 |
| ₹3,00,001 – ₹7,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹7,00,001 – ₹10,00,000 | 10% | ₹3,00,000 | ₹30,000 |
| ₹10,00,001 – ₹12,00,000 | 15% | ₹2,00,000 | ₹30,000 |
| ₹12,00,001 – ₹15,00,000 | 20% | ₹3,00,000 | ₹60,000 |
| Above ₹15,00,000 | 30% | ₹2,25,000 | ₹67,500 |
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What Is Left After Tax on ₹18 Lakh?
Income tax is only one of three deductions on an Indian payslip. On ₹18,00,000 a year the New Regime takes ₹2,15,800 — an effective rate of 11.99% across the whole salary, well below the top marginal slab rate because the earlier brackets are taxed at lower rates. Employee EPF and state Professional Tax come out on top of that, which is what separates your taxable salary from the amount that actually lands in your bank account.
Income Tax on ₹18 Lakh — Frequently Asked Questions
How much income tax do I pay on a ₹18 Lakh salary under the New Tax Regime?
The total tax on a ₹18 Lakh annual salary under the New Tax Regime is ₹2,15,800, including the 4% Health and Education Cess. That is deducted by your employer as monthly TDS of roughly ₹17,983.
Is a ₹18 Lakh salary tax-free in India?
No. A ₹18 Lakh salary exceeds the Section 87A rebate threshold, so ₹2,15,800 is payable under the New Regime and ₹3,51,000 under the Old Regime before itemised deductions.
New Regime or Old Regime — which is cheaper for ₹18 Lakh?
The New Tax Regime is cheaper by ₹1,35,200 a year at ₹18 Lakh, comparing ₹2,15,800 against ₹3,51,000. The Old Regime only overtakes it if your 80C, 80D, HRA and home loan interest deductions together exceed roughly ₹4,50,667.
How much monthly TDS will my employer deduct on ₹18 Lakh?
Your employer spreads the annual liability across twelve months, so expect roughly ₹17,983 per month under the New Regime. The actual deduction varies month to month — it is recalculated whenever you declare investments, and bonus months carry a higher deduction.
Does the ₹18 Lakh figure include EPF and professional tax?
No. This page computes income tax only. Employee EPF (12% of basic pay) and state Professional Tax (up to ₹2,500 a year) are separate deductions taken from your salary before it reaches your account. Use the in-hand salary calculator to see all three together.
Check income tax for other salary levels:
Slab rates verified against Finance Act provisions on .