A job offer usually quotes CTC (cost to company), but the amount that reaches your bank account each month is smaller. This salary calculator estimates that in-hand figure for the tax year 2026-27 (April 2026 to March 2027). It takes off employee PF, professional tax and income tax, under either the new or the old tax regime. It runs in your browser.
How to use the salary calculator
- Enter your annual CTC.
- Set basic salary as a % of CTC. The default is 50%; your offer letter shows the real figure.
- Say whether the employer’s PF is included in your CTC (it usually is).
- Choose whether PF is worked out on your full basic or capped at the EPF wage ceiling of ₹25,000 a month.
- Pick your state to fill in a default professional tax for the year, and edit it if your payslip shows a different amount.
- Choose the tax regime: New (the default) or Old. For the old regime, enter your extra deductions: 80C (up to ₹1.5 lakh), 80D, your HRA exemption amount and any others.
- Read the monthly and yearly gross salary, employee PF, professional tax, income tax and in-hand pay.
How in-hand salary is worked out
- Gross salary = CTC − employer’s PF (if it is part of your CTC).
- Employee PF = 12% of basic, or 12% of ₹25,000 (₹3,000 a month) if capped.
- Taxable income = gross salary − standard deduction − other allowed deductions.
- Income tax = tax from the slabs − rebate (with marginal relief where it applies), plus 4% health and education cess.
- In-hand pay = gross salary − employee PF − professional tax − income tax.
Income tax slabs for 2026-27
From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act, and “previous year” became “tax year”. The Finance Act, 2026 kept the rates unchanged.
| New regime (default) | 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% |
In the new regime, salaried people get a ₹75,000 standard deduction, and a resident individual with taxable income up to ₹12 lakh gets a rebate of up to ₹60,000, so the tax is nil. Just above ₹12 lakh, marginal relief caps the tax at the amount by which income crosses ₹12 lakh. For example, at ₹12,10,000 the slab tax is ₹61,500, but you pay only ₹10,000 plus cess.
The old regime has slabs of nil up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above (with higher exemption limits for people aged 60 and over). It allows a ₹50,000 standard deduction, a rebate of up to ₹12,500 if taxable income is ₹5 lakh or less, and deductions such as 80C, 80D, HRA and professional tax. Professional tax is not deductible in the new regime.
A worked example
CTC ₹18,00,000, basic 50%, employer PF included in CTC and capped at the ceiling, professional tax ₹2,500, new regime:
| Item | Per year |
|---|---|
| Gross salary (₹18,00,000 − ₹36,000 employer PF) | ₹17,64,000 |
| Taxable income (− ₹75,000 standard deduction) | ₹16,89,000 |
| Income tax ₹1,37,800 + 4% cess | ₹1,43,312 |
| Employee PF | ₹36,000 |
| Professional tax | ₹2,500 |
| In-hand pay | ₹15,82,188 (about ₹1,31,849 a month) |
With the old regime, ₹1.5 lakh of 80C (which includes your own PF) and ₹25,000 of 80D, the tax on the same salary would be about ₹2,84,388, so the new regime is better here. With large HRA and other deductions the answer can change, which is why the calculator lets you compare both.
What the salary calculator leaves out
- Surcharge, which applies only above ₹50 lakh of income. The calculator says so when it matters.
- Gratuity, bonuses, variable pay, reimbursements and meal cards, which many CTCs include.
- Employer NPS, other income, capital gains and TDS timing.
Watch out: Tax rules change every year, and payroll practice differs between employers. Treat these numbers as an estimate. Check the official rules on incometax.gov.in and the EPF rules on epfindia.gov.in, and speak to a chartered accountant for your own case.
Planning what to do with the in-hand amount? Try the SIP calculator or the EMI calculator.
Learn more
- SIP Calculator
- EMI Calculator
- Percentage Calculator
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Frequently asked questions
Is the new or the old tax regime better for me?
It depends on your deductions. With few deductions, the new regime is usually lower. With large 80C, 80D, HRA and home-loan deductions, the old regime can win. Enter both in the calculator and compare.
Why did the PF wage ceiling change to ₹25,000?
The Government raised the EPF wage ceiling from ₹15,000 to ₹25,000 a month with effect from 17 September 2026. If your employer still calculates PF on ₹15,000 or on your full basic, change the PF option to match your payslip.
Does the calculator include surcharge?
No. Surcharge applies only when income is above ₹50 lakh. Above that level, get the figure checked by a chartered accountant.
Why is my actual payslip different?
Your employer may include gratuity, insurance or variable pay in CTC, deduct tax evenly across the year, or calculate PF on a different wage. Your payslip and Form 16 are the final word.