Earning Rs 18 LPA doesn’t always make you rich. CA breaks down the middle-class illusion

Earning Rs 18 lakh a year sounds fancy, right? For most Indians, that’s a dream salary. But here’s the twist—many who make that kind of money still feel stuck in the “middle class” struggle. Hatchback EMIs, SIP savings, rent, and lifestyle costs eat into the paycheck, leaving people wondering: Am I really rich? CA Nitin Kaushik recently broke down why this feeling exists, and the numbers will surprise you.

One of his clients, earning Rs 18 lakh annually, complained about feeling average and not wealthy. When Kaushik pulled out tax data, reality struck. Over 50% of Indian taxpayers earn Rs 7.5 lakh or less in a year—that’s barely Rs 62,000 a month. In comparison, Rs 18 lakh puts you straight into the top 10% of taxpayers in the country. Far from “average.”

High earning and still feel middle class?

So why do people earning this much still feel middle class? CA believes it’s the mindset. This client, like many, drives a modest car, juggles EMIs, and sticks to SIPs. Lifestyle choices create the illusion of being middle class even when the data says otherwise. In fact, if you earn above Rs 15 lakh, you’re already in a rare bracket, with only 6.2% of taxpayers falling in the Rs 15–25 lakh range. And just 2.5% make Rs 25–50 lakh a year.



Kaushik sums it up best: in India, “middle class” isn’t an income bracket—it’s a mindset. You can earn Rs 18 lakh and still feel stretched because expenses balloon with lifestyle. But the data proves you’re far from average. The real challenge, he says, isn’t about individual perception but about expanding the base of India’s middle class so more people can climb up the ladder.