How to Save Tax on a ₹15 LPA Salary (2026)

A ₹15 lakh salary is the sweet spot where tax planning actually matters. Below ₹12.75 lakh, the New Regime makes you virtually tax-free. Above ₹20 lakh, the Old Regime almost always wins if you have decent deductions. But at ₹15 lakh, the two regimes are neck and neck — and the right strategy can save you ₹50,000 or more.

Start by checking your exact numbers with our Tax Regime Comparator. Then read the strategies below to maximise your savings. For a detailed regime comparison with worked examples, see our Old vs New Tax Regime guide.

Tax Under New Regime at ₹15 LPA

Under the New Tax Regime (default for FY 2025-26), your tax computation at ₹15 lakh gross salary is straightforward. The only deduction available is the ₹75,000 standard deduction (and employer NPS under 80CCD(2) if your employer contributes).

• Gross salary: ₹15,00,000
• Standard deduction: ₹75,000
• Taxable income: ₹14,25,000
• Tax: 0-4L nil + 4-8L at 5% (₹20,000) + 8-12L at 10% (₹40,000) + 12-14.25L at 15% (₹33,750) = ₹93,750
• Cess (4%): ₹3,750
• Total tax: ₹97,500

This is a clean, no-effort computation. You do not need to invest in anything specific or submit proofs to your employer. Compute your exact take-home using our Salary Calculator.

Tax Under Old Regime at ₹15 LPA

The Old Regime has higher slab rates (5%, 20%, 30%) but allows you to claim deductions that can significantly reduce taxable income. Here is a worked example with typical deductions for a salaried employee living in a metro:

Salary Structure Assumption

• Basic salary: ₹6,00,000 (40% of CTC)
• HRA: ₹3,00,000
• Special allowance: ₹6,00,000

Deductions Available

• Section 80C — ₹1,50,000: EPF (₹72,000 employee share) + ELSS/PPF (₹78,000). Read our Section 80C guide for the full list of eligible investments.
• Section 80CCD(1B) — ₹50,000: Additional NPS self-contribution beyond 80C limit
• Section 80D — ₹25,000: Health insurance premium for self and family
• HRA exemption — ₹1,50,000: Paying ₹25,000/month rent in a metro. Exemption = minimum of (actual HRA ₹3L, rent minus 10% basic = ₹2.4L, 50% of basic = ₹3L) = ₹2.4L, but capped at actual HRA = ₹3L → ₹2,40,000. For simplicity, assuming ₹1.5L net impact.

Tax Computation — Old Regime

• Gross salary: ₹15,00,000
• Less HRA exemption: ₹1,50,000
• Less standard deduction: ₹50,000 (Old Regime has ₹50K, not ₹75K)
• Gross total income: ₹13,00,000
• Less 80C: ₹1,50,000
• Less 80CCD(1B): ₹50,000
• Less 80D: ₹25,000
• Taxable income: ₹10,75,000
• Tax: 0-2.5L nil + 2.5-5L at 5% (₹12,500) + 5-10L at 20% (₹1,00,000) + 10-10.75L at 30% (₹22,500) = ₹1,35,000
• Cess (4%): ₹5,400
• Total tax: ₹1,40,400

Strategies to Maximise Savings

1. Maximise Section 80C (₹1.5 Lakh)

Your EPF automatically covers ₹72,000 (at 12% of ₹6L basic). Invest the remaining ₹78,000 in ELSS mutual funds (3-year lock-in, potential for higher returns) or PPF (15-year lock-in, guaranteed returns). ELSS is preferred for younger investors due to the shorter lock-in.

2. NPS for the Extra ₹50,000 (80CCD(1B))

Contributing ₹50,000 to NPS under Section 80CCD(1B) gives you an additional deduction beyond the ₹1.5L 80C limit. At the 20% slab, this saves ₹10,400 (including cess). The employer NPS contribution under 80CCD(2) is available in both regimes — ask your employer to restructure your CTC to include this.

3. Health Insurance (Section 80D)

Buy a health insurance policy for yourself and family (₹25,000 deduction). If you also pay premium for parents, you get an additional ₹25,000 (₹50,000 if parents are senior citizens). Total 80D deduction can reach ₹75,000.

4. HRA Planning

If you live in a metro and pay rent, HRA exemption is one of the largest deductions available. Ensure your rent agreement and rent receipts are in order. If rent exceeds ₹1 lakh per year, you need the landlord's PAN. For the exact HRA exemption calculation, use our HRA Calculator.

5. Home Loan Interest (Section 24(b))

If you have a home loan, interest up to ₹2 lakh per year is deductible under the Old Regime. This single deduction can shift the balance decisively in favour of the Old Regime at ₹15 LPA. The principal repayment also counts towards 80C.

When to Just Stay with New Regime

If you do not pay significant rent, do not have a home loan, and your only deductions are 80C (through EPF) and basic health insurance — stay with the New Regime. The simplicity saves time, and the tax difference is minimal or in favour of the New Regime. At ₹15 LPA, the Old Regime only wins decisively when total deductions cross ₹4.25 lakh, which requires either HRA exemption in a metro or a home loan.