India · FY 2026-27 tax rules
What your CTC actually pays you each month
Your offer letter shows one big CTC number. Enter it below and see what actually reaches your bank account every month — under both the old and the new tax regime, with PF, gratuity and professional tax included, and every assumption written out in the open.
Your fixed annual CTC from your offer letter, before any bonus or variable pay.
Most Indian companies keep basic at 40–50% of CTC. Check your offer letter if you know yours.
Professional tax is a small state tax your employer deducts. It depends on the state where you work.
Maharashtra charges women no professional tax on a gross salary up to ₹25,000/month, and lower slabs apply to men at low salaries. Every other state in this calculator uses the same rates for everyone.
Your estimated monthly in-hand
— per month
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Full annual breakup
HRA is shown only as a part of your salary structure (we assume HRA = 50% of basic). This calculator does not claim any HRA tax exemption — read the assumptions below so you know exactly what the numbers mean.
How we calculate — every assumption, in the open
- Basic salary = the % of CTC you chose above (default 40%).
- Employer PF and gratuity are part of your CTC, so they are removed first: Gross salary = CTC − employer PF − gratuity. Gratuity is taken as 4.81% of basic salary per year.
- PF: employer PF = 12% of PF wages. PF wages are either capped at ₹25,000/month (the statutory EPF wage ceiling since 17 September 2026) or your full basic, as you chose. Your own (employee) PF is the same amount and is deducted from gross salary.
- HRA is shown as 50% of basic, only as a salary-structure component. It is a part of gross salary. We do not calculate any HRA exemption — the full gross salary is treated as taxable (after the standard deduction). If you pay rent and claim HRA exemption under the old regime, your actual old-regime tax may be lower than shown here.
- New tax regime (FY 2026-27): standard deduction ₹75,000. Slabs: 0–₹4L nil, ₹4–8L 5%, ₹8–12L 10%, ₹12–16L 15%, ₹16–20L 20%, ₹20–24L 25%, above ₹24L 30%. Section 87A rebate up to ₹60,000 when taxable income is up to ₹12,00,000; just above ₹12,00,000, simple marginal relief caps the tax at the amount by which your income exceeds ₹12,00,000. Health & education cess 4%.
- Old tax regime (FY 2026-27): standard deduction ₹50,000. Slabs (age below 60): 0–₹2.5L nil, ₹2.5–5L 5%, ₹5–10L 20%, above ₹10L 30%. We assume you use the full ₹1,50,000 Section 80C deduction (your PF contribution is assumed to be part of this ₹1.5 lakh — it is not deducted twice). Section 87A rebate ₹12,500 when taxable income is up to ₹5,00,000. Cess 4%. No other deductions (no HRA exemption, no 80D medical insurance, no home-loan interest) are applied.
- Professional tax is charged as per your state's schedule and is deducted from gross salary. Maharashtra's schedule differs by gender — that is what the gender selector is for — and Maharashtra and Karnataka both charge ₹300 in February instead of the usual ₹200, which is why the yearly total there is ₹2,500, not ₹2,400. In this simple model professional tax is not also deducted from taxable income.
- Surcharge is not applied. If your taxable income is above roughly ₹50 lakh, your actual income tax will be somewhat higher than shown.
- In-hand = (Gross − employee PF − professional tax − income tax) ÷ 12. Figures are rounded to the nearest rupee; the statutory rounding of tax to the nearest ₹10 is not applied.
- Bonus, variable pay, employer NPS, and one-time joining amounts are not included — the CTC you enter should be your fixed annual CTC for a clean estimate.
In-hand salary for popular CTC levels
More calculators
Professional tax by state
Professional tax is deducted by your state, and every state plays by different rules — two charge nothing at all. Pick your state for its exact rates and worked in-hand examples.
Please note: these are estimates from a simplified model, not tax advice. Your real payslip can differ because of your actual salary structure, rent/HRA claims, other deductions, bonus timing and your employer's PF policy. See our methodology page for the full formulas and the tax slabs used. Rules checked for FY 2026-27.