What is your monthly take-home salary on a ₹12 LPA CTC under the new tax regime?
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Calculate your exact monthly take-home salary on ₹12 lakh annual CTC under the FY 2026–27 new tax regime (slabs unchanged from FY 2025–26). With the ₹75,000 standard deduction and Section 87A rebate, tax payable is zero up to ₹12 lakh taxable income.
Why ₹12 LPA Take-Home Is a Critical Slab
Under FY 2025-26 (Budget 2025) new tax regime rules, a salaried individual earning ₹12 lakh per year pays zero income tax. The ₹75,000 standard deduction brings taxable income to ₹11.25 lakh, falling within the ₹12 lakh Section 87A rebate ceiling — so the calculated tax of ₹52,500 is fully refunded as rebate. Monthly take-home is the full ₹1,00,000.
This is the biggest middle-class tax change since 2020. Earlier, a ₹12 LPA earner paid roughly ₹1.6 lakh in tax under the new regime. Budget 2025 wiped that out entirely — a real annual saving of ₹1.6 lakh, or ₹13,400 a month. For households earning ₹10-15 LPA, this is the single largest disposable-income boost in recent memory.
Two practical implications. First, the old tax regime is now mathematically inferior at ₹12 LPA because new-regime tax is already nil: the old regime can only match it if 80C + HRA + 80D + home loan interest deductions reach roughly ₹6.5 lakh combined. Most salaried earners can’t cross that threshold. Second, this changes household budgeting: a ₹1 lakh/month take-home is the new ₹86,600 of FY 2024-25 — a step-change worth running fresh SIP, EMI affordability, and retirement projections on.
Take-Home Salary Calculator (New Regime)
New tax regime with ₹75,000 standard deduction. FY 2026–27 slabs (unchanged from FY 2025–26).