How we calculate in-hand salary

The order of the calculation

1. Split the CTC into basic pay, HRA, employer PF, gratuity, employer NPS and a special allowance that takes the rest of the fixed pay.
2. Gross salary is the CTC less employer PF, gratuity, employer NPS and any variable pay you do not expect to receive.
3. Your PF is 12% of basic, or of the statutory wage ceiling month by month if you choose that: ₹15,000 a month until 16 September 2026 and ₹25,000 from 17 September 2026 (Ministry of Labour and Employment notification S.O. 5109(E) of 17 September 2026).
4. Professional tax follows your state's schedule, including uneven months such as ₹300 in February in Maharashtra and Karnataka.
5. Taxable income is gross salary plus employer NPS, plus any employer PF and NPS above ₹7,50,000 a year (section 17), less the standard deduction and the deductions your regime allows, including employer NPS up to 14% of basic in the new regime or 10% in the old. It is rounded to the nearest ₹10 under section 516.
6. Income tax is slab tax less the section 156 rebate (with marginal relief), plus any surcharge (with marginal relief) and the 4% cess, rounded to the nearest ₹10.
7. In-hand salary is gross salary less your PF, professional tax and income tax. Monthly figures are the yearly amounts divided by 12.

Sources

• Income-tax Act 2025, section 202 (tax rates); section 19 (standard deduction); section 156 (rebate); section 17 (employer contributions above ₹7.5 lakh); section 516 (rounding); section 392 (tax deducted from salary)
• section 123 (formerly 80C); section 124 (NPS, formerly 80CCD); section 126 (health insurance, formerly 80D); section 22 (home loan interest); Schedule III and rule 279 (house rent allowance)
• Budget 2026: Finance Bill 2026; Finance Bill 2026, memorandum explaining the provisions
• Ministry of Labour and Employment notification S.O. 5109(E) of 17 September 2026; ESIC: contribution rates; Government of India: Code on Social Security, 2020, summary; Code on Wages, 2019 (Gazette of India)
• State professional tax schedules, listed on professional tax by state

How we test it

The calculator is checked against hand-worked examples for 6, 8, 12, 15, 25 and 50 lakh and the old regime at 15 lakh, and the version in your browser is checked against the version that writes these pages on 600 random salaries in testing.

What we could not confirm from an official source

• The final text of the Finance Act 2026: we checked the Finance Bill as introduced.
• West Bengal's final notification for professional tax from 1 October 2026 (we have seen the draft schedule).
• Whether Odisha's April 2026 ordinance removing professional tax has been replaced by an Act.
• The Assam and Jharkhand professional tax schedules, which come from published transcriptions.
• That Delhi, Haryana, Uttar Pradesh and Rajasthan levy no professional tax: we found no such tax, which is harder to prove from a primary source.
• The gratuity ceiling under the Code on Social Security; we use the ₹20 lakh ceiling from 2018.

What it does not cover

ESI for salaries of ₹21,000 a month or less, more than one employer in a year, arrears, bonuses paid in one month, perquisites such as a company car or rent-free housing, income other than salary, and the timing of TDS through the year.

Changelog

• 20 October 2026: India calculator published for tax year 2026-27.

These figures are estimates based on the information you entered and the rules for tax year 2026-27 under the Income-tax Act 2025 as it stands after Budget 2026, EPFO notifications and state professional tax schedules. They are general information, not tax, financial or legal advice. Your actual in-hand salary can differ, for example because of your company's salary structure, variable pay, PF rules, your regime choice, TDS timing or your state. Check your payslip, or ask your payroll team or a chartered accountant, before relying on these figures.