Old vs New Tax Regime for Rs. 8 Lakh Income

FY $2026-27 comparison - Which regime saves you more tax?

New Regime Tax

Rs. 0

Std ded Rs. 75k + 87A rebate

Better for you

Old Regime Tax

Rs. 16,120

With typical Rs. 2.35 lakh deductions

Annual saving

Rs. 16,120

by choosing New Regime

Typical deductions assumed for old regime

80C (PF/ELSS/LIC)Rs. 1.50 lakh
80D (Health Insurance)Rs. 25,000
HRA ExemptionRs. 60,000
Total deductionsRs. 2.35 lakh

Need total deductions above ~Rs. 1 lakh for old regime to win at this income

At Rs. 8L income, the 87A rebate makes new regime very attractive. Old regime wins only with large HRA + 80C.

Customize with your actual deductions

FY 2026-27 tax slabs. New regime: standard deduction Rs. 75,000 + 87A rebate up to Rs. 60,000 (zero tax up to Rs. 12L taxable income). Old regime: standard deduction Rs. 50,000 + all exemptions.

₹8.00 L

Old regime deductions (irrelevant in new regime)

New Regime

₹0

Effective rate: 0.00%

Taxable income₹7.25 L
Income tax₹0
Cess (4%)₹0
Total tax₹0

Old Regime

₹0

Effective rate: 0.00%

Taxable income₹4.55 L
Income tax₹0
Cess (4%)₹0
Total tax₹0

Both regimes result in the same tax for your income and deductions.

FAQs - Rs. 8 Lakh Tax Regime

Which tax regime is better for Rs. 8 Lakh salary in FY 2026-27?

For Rs. 8 Lakh gross income in FY 2026-27: New regime tax = Rs. 0 (with Rs. 75,000 standard deduction and 87A rebate if applicable). Old regime tax = Rs. 16,120 (with typical deductions of Rs. 2.35 lakh including 80C + HRA + 80D). New regime saves Rs. 16,120. At Rs. 8L income, the 87A rebate makes new regime very attractive. Old regime wins only with large HRA + 80C.

What deductions are needed for old regime to beat new regime at Rs. 8 Lakh?

Need total deductions above ~Rs. 1 lakh for old regime to win at this income

What is the income tax on Rs. 8 Lakh in new regime?

New regime tax on Rs. 8 Lakh gross income (FY 2026-27): Standard deduction Rs. 75,000 reduces taxable income to Rs. 7.25 lakh. Tax calculated on progressive slabs (0%/5%/10%/15%/20%/25%/30% in Rs. 4 lakh brackets). 87A rebate of Rs. 60,000 applies if taxable income is Rs. 12 lakh or less. 4% health and education cess on final tax. Total tax payable: Rs. 0.