15 Lakh Tax Slab in India: Old vs New Regime Explained

If your annual income is around ₹15 lakh, you’re likely wondering: “How much tax will I need to pay, and which regime should I choose?”

After the Budget 2025 updates, the new tax regime has become the default system with revised slab rates, offering higher relief for middle-class earners. Meanwhile, the old regime is still available for those who want to claim deductions like 80C, 80D, or HRA.

In this article, we’ll break down the 15 lakh tax slab in India, compare the old vs new regimes, and help you decide the best tax regime for 15 lakhs salary.

What is the 15 lakh tax slab in India?

✅ Under the New Regime (FY 2025–26)

The new tax regime for 15 lakh salary works on reduced slab rates with a Section 87A rebate up to ₹12–12.75 lakh. Since ₹15 lakh is above this threshold, some tax will apply.

Here’s how it falls into the slabs:

• Up to ₹4,00,000 → Nil
  
• ₹4,00,001 – ₹8,00,000 → 5% = ₹20,000
  
• ₹8,00,001 – ₹12,00,000 → 10% = ₹40,000
  
• ₹12,00,001 – ₹15,00,000 → 15% of ₹3,00,000 = ₹45,000
  
• Total tax = ₹1,05,000 (before cess)
  

Add 4% cess = ₹4,200
✅ Final tax = ₹1,09,200

So, the 15 lakh tax slab new regime results in around ₹1.09 lakh tax (without additional deductions like NPS employer contribution).

✅ Under the Old Regime (FY 2025–26)

In the old regime, ₹15 lakh falls into the 30% slab above ₹10 lakh.

Here’s the breakdown:

• Up to ₹2,50,000 → Nil
  
• ₹2,50,001 – ₹5,00,000 → 5% = ₹12,500
  
• ₹5,00,001 – ₹10,00,000 → 20% = ₹1,00,000
  
• ₹10,00,001 – ₹15,00,000 → 30% of ₹5,00,000 = ₹1,50,000
  
• Total tax = ₹2,62,500 (before cess)
  

Add 4% cess = ₹10,500
✅ Final tax = ₹2,73,000

So, the tax on 15 lakh income in old regime is almost 2.5 times higher than the new regime if no deductions are claimed.

👉 Summary of 15 lakh tax slab:

• New regime → ~₹1.09 lakh tax
  
• Old regime → ~₹2.73 lakh tax (can reduce with 80C, 80D, HRA, etc.)

How is income tax on 15 lakhs salary calculated under the new regime?

Under the new tax regime (FY 2025–26), slab rates are lower and spread across more income brackets. However, since the Section 87A rebate applies only up to ₹12–12.75 lakh, a ₹15 lakh salary will attract some tax.

Step-by-step calculation:

• Annual income = ₹15,00,000
  
• Standard deduction (for salaried) = ₹75,000
  
• Taxable income = ₹14,25,000
  

Apply new slabs:

• Up to ₹4,00,000 → Nil
  
• ₹4,00,001 – ₹8,00,000 → 5% = ₹20,000
  
• ₹8,00,001 – ₹12,00,000 → 10% = ₹40,000
  
• ₹12,00,001 – ₹14,25,000 → 15% of ₹2,25,000 = ₹33,750
  
• Total = ₹93,750
  

Add 4% cess = ₹3,750
✅ Final tax liability = ₹97,500

👉 So, under the new regime, a ₹15 lakh salaried person pays less than ₹1 lakh in tax, a big relief compared to the old system.

How is income tax on 15 lakhs salary calculated under the old regime?

The old regime has fewer slabs but allows deductions like 80C, 80D, HRA, and home loan interest. Without deductions, the tax is much higher.

Step-by-step calculation (without deductions):

• Annual income = ₹15,00,000
  
• Apply slabs:
  
  • Up to ₹2,50,000 → Nil
    
  • ₹2,50,001 – ₹5,00,000 → 5% of ₹2.5 lakh = ₹12,500
    
  • ₹5,00,001 – ₹10,00,000 → 20% of ₹5 lakh = ₹1,00,000
    
  • ₹10,00,001 – ₹15,00,000 → 30% of ₹5 lakh = ₹1,50,000
    
• Total = ₹2,62,500
  
• Add 4% cess = ₹10,500
  ✅ Final tax liability = ₹2,73,000
  

With deductions (example):

If you invest and claim:

• ₹1,50,000 under 80C,
  
• ₹25,000 under 80D,
  
• ₹50,000 HRA exemption,
  
• ₹2,00,000 home loan interest,
  

Your taxable income drops to ₹10,75,000.

• Tax calculation = ~₹1,17,000 (after cess).
  

👉 Even with deductions, the old regime tax is higher than the new regime for a ₹15 lakh salary.

Which is the best tax regime for 15 lakhs salary?

At a ₹15 lakh salary, the choice between old vs new tax regime depends on your financial habits.

• New Regime (Best for most salaried employees)
  
  • Tax liability ≈ ₹97,500 (after standard deduction).
    
  • No need to invest in tax-saving instruments just to reduce tax.
    
  • Simple filing, higher take-home salary.
    
• Old Regime (Best for heavy investors & homeowners)
  
  • Tax liability ≈ ₹2,73,000 without deductions.
    
  • With deductions (80C, 80D, HRA, home loan interest), tax can reduce to around ₹1.1–1.2 lakh.
    
  • Best for people already committed to tax-saving investments, insurance, or EMIs.
    

👉 Verdict:
For most people, the new regime is the best option for 15 lakh salary, since tax is much lower and compliance is simple.
But if you have significant deductions (like a home loan + investments), the old regime may be equally competitive.

What are the tax-saving options for 15 lakh income under the old regime?

If you stick to the old regime, you can use deductions and exemptions to reduce taxable income. Here are the major ones:

1. Section 80C (up to ₹1.5 lakh)
   

Investments in PPF, ELSS, NSC, Sukanya Samriddhi, EPF, LIC, tax-saving FDs.

2. Section 80D (₹25,000 / ₹50,000)
   

Health insurance premiums (self, spouse, children, parents).

3. House Rent Allowance (HRA)
   

If you live in rented accommodation, you can claim HRA exemption.

4. Home Loan Interest (Section 24b)
   

Deduction up to ₹2 lakh for interest on a self-occupied property.

5. Education Loan Interest (Section 80E)
   

Full deduction on interest for higher education loans.

6. Section 80G
   

Donations to eligible charities and relief funds.

👉 Example:

• Salary = ₹15,00,000
  
• 80C = ₹1,50,000
  
• 80D = ₹25,000
  
• HRA = ₹75,000
  
• Home loan interest = ₹2,00,000
  
• Taxable income = ₹10,50,000
  
• Final tax ≈ ₹1.17 lakh (after cess)
  

✅ This shows that with proper planning, you can cut your tax bill by more than half under the old regime, though it still won’t beat the new regime for simplicity.

Conclusion

If your annual income is around ₹15 lakh, the difference between the two regimes is clear:

• Under the new tax regime, your tax liability is about ₹97,500 (after standard deduction), making it the simpler and more cost-effective choice.
  
• Under the old tax regime, the tax is about ₹2.73 lakh without deductions, but with smart tax planning, through 80C, 80D, HRA, home loan interest, it can be reduced to around ₹1.1–1.2 lakh.
  

💡 The bottom line: The best tax regime for 15 lakhs salary will depend on your lifestyle. If you prefer simplicity and higher take-home pay, the new regime is better. If you already have significant deductions, the old regime may still work in your favour.

FAQs on 15 Lakh Tax Slab

1. What is the tax on 15 lakh income in the new regime?

Around ₹97,500 (after standard deduction and cess) under FY 2025–26 slab rates.

2. What is the tax on 15 lakh income in the old regime?

About ₹2.73 lakh without deductions. With deductions, it can reduce to ~₹1.1–1.2 lakh.

3. What is the current tax slab for 15 lakh salary?

• New regime → ₹12–16 lakh bracket = 15% slab.
  
• Old regime → Above ₹10 lakh = 30% slab.
  

4. Which is the best tax regime for 15 lakh salary?

For most salaried taxpayers, the new regime is better. The old regime works only if you have large deductions (home loan, 80C, 80D, etc.).

5. Can I pay zero tax on 15 lakh salary?

No. Since the Section 87A rebate applies only up to ₹12–12.75 lakh, a ₹15 lakh salary will always attract some tax under both regimes.

6. What deductions can I claim on 15 lakh income under the old regime?

80C (₹1.5 lakh), 80D (₹25k/50k), HRA, 24b (home loan interest up to ₹2 lakh), 80E (education loan interest), 80G (donations).

7. Does the new regime allow deductions like 80C and 80D?

No. The new regime does not allow most deductions, except the standard deduction of ₹75,000 and employer contributions to NPS/EPF.