Income Tax on ₹21 Lakh Salary (FY 2026-27)
New vs old regime comparison with deductions. Adjust inputs for your exact situation.
New Regime Tax
₹2,14,500
10.21% effective rate
Old Regime Tax
₹3,27,600
15.6% (typical deductions)
New Regime Saves
₹1,13,100
vs other regime
Monthly TDS
₹17,875
new regime
New Regime Tax Calculation (FY 2026-27)
| Gross Annual Income | ₹21,00,000 |
| Less: Standard Deduction | - ₹75,000 |
| Taxable Income | ₹20,25,000 |
| Tax on Slabs | ₹2,06,250 |
| Tax After Rebate | ₹2,06,250 |
| Health & Education Cess (4%) | ₹8,250 |
| Total Tax Payable | ₹2,14,500 |
Enter your exact income and deductions
Allowed in both Old and New regime. Capped at 10% of basic+DA (private sector). Max ₹5L shown.
Zero tax payable under New Regime
After ₹75,000 standard deduction, taxable income is ₹11.25 L. Section 87A rebate of up to ₹60,000 wipes out all tax on income up to ₹12 L taxable (effective gross ≤ ₹12.75 L).
Total Tax (Annual)
₹0
₹0/month
Take-Home (Annual)
₹12 L
₹1 L/month
Effective Tax Rate
0.00%
on gross income
Marginal Tax Rate
10%
incl. 4% cess
Income Breakdown
New Regime saves you ₹86,840 in taxes
Old Regime
₹86,840
Taxable: ₹8.55 L
New Regime (2026-27)
₹0
Taxable: ₹11.25 L
To make Old Regime competitive, you would need approx. ₹4.18 L more in eligible deductions (80C, HRA, 80D etc.) on top of your current inputs.
Want a detailed side-by-side deduction analysis?
Compare Regimes →Tax Slab Breakdown
| Income Range | Rate | Tax |
|---|---|---|
| ₹4,00,000 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹32,500 |
| Income Tax + 4% Cess | ₹0 | |
Income Tax on ₹21 Lakh Salary — Key Facts
On ₹21 Lakh gross annual salary in FY 2026-27, your income tax under the new regime is ₹2,14,500 (10.21% effective rate). After the ₹75,000 standard deduction, your taxable income is ₹20,25,000, taxed up to the 25% slab.
Under the old regime with typical deductions (₹1.5L 80C + ₹25k 80D + HRA), tax is approximately ₹3,27,600. The new regime is cheaper by ₹1,13,100 here — it wins unless your total deductions exceed about ₹7,50,000.
Old vs New Regime at ₹21 Lakh
| New Regime | Old Regime* | |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| Other deductions assumed | ₹0 | ₹3,75,000 |
| Taxable income | ₹20,25,000 | ₹16,75,000 |
| Total tax | ₹2,14,500 | ₹3,27,600 |
| Effective rate | 10.21% | 15.6% |
*Old regime assumes typical deductions of ₹3,75,000 (₹1.5L 80C + ₹25k 80D + estimated HRA). Your actual old-regime tax depends on what you claim — the old regime beats the new one only once your total deductions cross about ₹7,50,000.
Rate and take-home at ₹21 Lakh
Marginal tax rate
25%
on your next ₹100 earned
Effective tax rate
10.21%
tax ÷ gross income
Avg. monthly (after tax)
₹1,57,125
before EPF & other deductions
Note the gap between your 25% marginal rate and 10.21% effective rate: only the income in your top slab is taxed at 25%. Your monthly figure above deducts income tax only — EPF (12% of basic), professional tax, and any other components reduce your actual in-hand further. Use the Salary Calculator for a full take-home breakdown.
Frequently Asked Questions
How much income tax do I pay on ₹21 Lakh salary in FY 2026-27?▾
On ₹21 Lakh gross annual income under the new tax regime (FY 2026-27), your income tax is ₹2,14,500 after the ₹75,000 standard deduction and 4% cess. That is an effective tax rate of 10.21%. Under the old regime with typical deductions, the tax would be about ₹3,27,600.
Which regime is better for ₹21 Lakh salary — old or new?▾
The new regime is better at ₹21 Lakh for most people, saving about ₹1,13,100 versus the old regime with typical deductions. The old regime only wins if your total deductions (80C + 80D + HRA + home-loan interest + NPS) exceed roughly ₹7,50,000 per year.
What is the monthly TDS and in-hand for ₹21 Lakh?▾
Your employer would deduct roughly ₹17,875 per month as TDS under the new regime. After income tax alone, your average monthly income works out to about ₹1,57,125 — before EPF and any other salary deductions. Use the Salary Calculator for an exact take-home figure.
What is my marginal tax rate at ₹21 Lakh?▾
At ₹21 Lakh, the top slab your taxable income reaches is the 25% bracket (new regime) — so every additional ₹100 you earn is taxed at 25% plus cess. Your effective (average) rate is lower, at 10.21%, because lower slabs are taxed at 0–20%.
Which deductions reduce tax on ₹21 Lakh income?▾
Deductions only help under the old regime. The most effective at this income are Section 80C (up to ₹1.5 lakh — EPF, PPF, ELSS, life insurance), Section 80D (health insurance, up to ₹25,000–₹75,000), HRA exemption, home-loan interest under Section 24(b) (up to ₹2 lakh), and the extra ₹50,000 NPS deduction under 80CCD(1B). The new regime gives a flat ₹75,000 standard deduction instead.
Do I need to file an ITR for ₹21 Lakh income?▾
Yes. Since ₹21 Lakh is above the basic exemption limit, you must file an income tax return even if your employer has already deducted TDS. Filing lets you claim refunds, report other income, and stay compliant. The due date for individuals is usually 31 July following the financial year.