Home › Income tax › ₹40 lakh salary
Income tax on ₹40 lakh salary (FY 2026-27)
New regime
₹7,87,800
₹65,650 a month · 19.7% of salary
Old regime, ₹1.5 lakh 80C
₹9,90,600
₹82,550 a month
On a gross salary of ₹40,00,000, the old regime is cheaper only if your deductions and exemptions are more than about ₹8,00,000.
New regime working
| Gross salary | ₹40,00,000 |
|---|---|
| Standard deduction | − ₹75,000 |
| Taxable income | ₹39,25,000 |
| Slab | Rate | Tax |
|---|---|---|
| ₹0–4 lakh | 0% | ₹0 |
| ₹4–8 lakh | 5% | ₹20,000 |
| ₹8–12 lakh | 10% | ₹40,000 |
| ₹12–16 lakh | 15% | ₹60,000 |
| ₹16–20 lakh | 20% | ₹80,000 |
| ₹20–24 lakh | 25% | ₹1,00,000 |
| ₹24–39.25 lakh | 30% | ₹4,57,500 |
| Tax on slabs | ₹7,57,500 |
|---|---|
| Cess (4%) | ₹30,300 |
| Total tax | ₹7,87,800 |
Old regime with different deductions
Deductions here mean 80C, 80D, HRA exemption, home loan interest and the like, on top of the ₹50,000 standard deduction.
| Deductions | Taxable income | Tax | vs new regime |
|---|---|---|---|
| ₹0 | ₹39,50,000 | ₹10,37,400 | costs ₹2,49,600 more |
| ₹1,50,000 | ₹38,00,000 | ₹9,90,600 | costs ₹2,02,800 more |
| ₹2,50,000 | ₹37,00,000 | ₹9,59,400 | costs ₹1,71,600 more |
| ₹3,75,000 | ₹35,75,000 | ₹9,20,400 | costs ₹1,32,600 more |
| ₹5,00,000 | ₹34,50,000 | ₹8,81,400 | costs ₹93,600 more |
Calculate with your own deductions · In-hand pay on a ₹40 lakh CTC
Frequently asked questions
How much tax do I pay on ₹40 lakh salary?
₹7,87,800 for the year under the new regime in FY 2026-27, including 4% cess. Under the old regime with ₹1.5 lakh of 80C deductions, it is ₹9,90,600.