In-Hand Salary Calculator FY 2026-27 | Take-Home Pay India

How your in-hand salary is calculated

Your cost to company (CTC) is the total a company spends on employing you in a year — but it is never what lands in your bank account. Several mandatory deductions are applied before your monthly salary is credited. Understanding each one helps you plan your finances and evaluate job offers accurately.

Step 1 — remove employer EPF to get gross salary

Your employer contributes 12% of your basic pay toward your EPF (Employees' Provident Fund). This contribution is included in your CTC but flows directly to your PF account, not to your bank. Removing it gives you your gross salary — the amount your company actually pays you as salary before tax and other deductions.

Step 2 — deduct employee EPF

You also contribute a matching 12% of your basic pay to your EPF account, deducted from your gross salary each month. Over a career, these contributions compound into a significant retirement corpus. Our EPF calculator shows you the projected maturity value.

Step 3 — deduct professional tax

Several Indian states levy a small professional tax on salaried employees. Tamil Nadu, Maharashtra, and Karnataka each charge ₹2,400 per year (₹200 per month). States like Delhi and Haryana do not levy any professional tax. Select your state above and it is included automatically.

Step 4 — deduct income tax (TDS)

Your employer estimates your annual tax liability at the start of the financial year based on your declared income and chosen tax regime, then deducts it as TDS (Tax Deducted at Source) spread equally over 12 months. This calculator computes that annual liability — under both regimes — so you can see the monthly impact and choose the regime that costs less.

The take-home formula

Gross salary = CTC − employer EPF (+ bonus if any)
Taxable income = gross salary − standard deduction (− old-regime deductions if applicable)
Tax = slab tax on taxable income − Section 87A rebate (if eligible)
Annual take-home = gross salary − employee EPF − professional tax − (tax + 4% cess)
Monthly take-home = annual take-home ÷ 12

New tax regime vs old tax regime — FY 2026-27

From FY 2023-24, the new tax regime became the default for salaried employees. Budget 2026 kept all slabs and limits unchanged from the previous year. Here is how the two regimes compare.

New regime slabs (FY 2026-27 / AY 2027-28)

Annual taxable income	Tax rate
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
Above ₹24,00,000	30%

Standard deduction for salaried employees: ₹75,000. Section 87A rebate: up to ₹60,000 — so taxable income up to ₹12,00,000 pays zero tax. For a salaried person, after the standard deduction, income up to ₹12,75,000 is completely tax-free. A 4% health and education cess applies on the remaining tax.

Old regime slabs (FY 2026-27 / AY 2027-28)

Annual taxable income	Tax rate
Up to ₹2,50,000	Nil
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

Standard deduction: ₹50,000. Section 87A rebate: ₹12,500 for taxable income up to ₹5,00,000. The old regime allows deductions under Section 80C (max ₹1.5 lakh for EPF, ELSS, PPF, LIC, etc.), Section 80D (health insurance), HRA exemption, and home-loan interest under Section 24(b) (up to ₹2 lakh for self-occupied property).

Which regime saves more tax?

The new regime is usually better for salaried people who do not have a home loan or large 80C investments. The old regime can win if your total deductions — 80C (₹1.5L) + HRA + home-loan interest + 80D — are substantial enough to offset its higher slab rates. Use the toggle at the top of this page to compare both regimes on your exact numbers.

If you pay rent and claim HRA, use our HRA exemption calculator to find the precise amount you can deduct. For standalone income tax calculations, see our income tax calculator.

Frequently asked questions

Is the new tax regime always better?

Not always. For most salaried people without large deductions, the new regime gives more take-home because of its lower slab rates and higher standard deduction (₹75,000 vs ₹50,000). But if you have a home loan (Section 24b interest up to ₹2L), claim a full ₹1.5L under 80C, and significant HRA, the old regime can come out ahead. The regime comparison callout above your breakdown shows both for your exact numbers — use it to decide.

What is the difference between CTC and in-hand salary?

CTC (cost to company) is the company's total annual spend on you, including the employer's 12% EPF contribution, gratuity provision, and any performance bonus. In-hand salary is what actually reaches your bank account each month after employee EPF (12% of basic), professional tax, and income tax (TDS) are deducted. For a ₹12 lakh CTC, the monthly in-hand amount typically ranges from ₹75,000 to ₹86,000 depending on your basic percentage, state, and tax regime.

What is the income tax-free limit for salaried employees in FY 2026-27?

Under the new tax regime, salaried employees with gross income up to ₹12,75,000 pay zero income tax. The ₹75,000 standard deduction reduces taxable income to ₹12,00,000, and the Section 87A rebate (up to ₹60,000) cancels the tax entirely at that level. Under the old regime, the effective tax-free limit is ₹5,00,000 of taxable income (after all deductions) thanks to the ₹12,500 rebate.

Is employer EPF part of my CTC?

Yes. The employer's 12% EPF contribution is included in your CTC but goes directly to your EPF account, not your monthly salary — which is why CTC is always higher than your gross pay. The employee's matching 12% is additionally deducted from your gross before you receive it. Both contributions build your EPF corpus over time. Use our EPF maturity calculator to see how much you will accumulate by retirement.

Can I change my tax regime mid-year?

Salaried employees declare their regime choice to their employer at the start of each financial year (April). Your employer then deducts TDS accordingly for the entire year. If you do not declare, the new regime is the default. You can switch regimes when filing your ITR (by July 31), regardless of what regime your employer used for TDS — but you will need to pay any resulting additional tax at that point.

Why does my actual payslip differ from this calculator?

This calculator uses standard assumptions: EPF as 12% of basic pay, professional tax as a flat annual amount, and the salaried standard deduction. Your actual payslip may vary because of company-specific allowances (food coupons, transport, leave travel), NPS contributions, additional deductions under Section 80CCD, or a different EPF calculation method. For high incomes above ₹50 lakh where surcharge applies, this calculator does not model surcharge — this is a known limitation.

Disclaimer: This calculator is for general informational and educational purposes only and does not constitute tax, legal, or financial advice. Tax rules are subject to change and individual circumstances vary. Figures are estimates based on standard assumptions (EPF at 12% of basic, standard professional tax amounts) and may differ from your actual salary slip or tax liability. Surcharge for incomes above ₹50 lakh is not modelled. Please consult a qualified chartered accountant or tax professional before making financial decisions.

In-hand salary calculator for FY 2026-27

Your salary details