💼 Salary Calculator
Find your monthly and annual take-home salary from your CTC, with a full deduction breakdown.
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Frequently Asked Questions
How do I use the Salary Calculator?
Enter your Annual CTC, Basic Salary (% of CTC), HRA (% of Basic), Employer and Employee EPF Contribution percentages, Professional Tax, any Other Monthly Deductions, and Other Tax Deductions (for the Old Regime estimate), then click "Calculate" to see your monthly and annual take-home pay before and after estimated income tax under both the New and Old tax regimes, along with a full salary component breakdown and tax comparison table.
How is take-home salary calculated from CTC?
CTC (Cost to Company) includes your Basic salary, HRA, special allowances and the employer's EPF contribution. Take-home salary = Gross Salary (Basic + HRA + Special Allowance) − Employee EPF contribution − Professional Tax − other deductions. The employer's EPF contribution is part of your CTC but is not paid to you directly, so it is excluded from take-home pay.
Why is my take-home salary lower than my CTC?
CTC represents the total cost an employer incurs for you, which includes amounts that don't come to your bank account — such as the employer's EPF contribution and, often, gratuity provisioning. On top of that, your own EPF contribution and professional tax are deducted from your gross pay, and income tax (TDS) may apply depending on your tax slab and regime.
What is Special Allowance in this calculation?
Special Allowance is the balancing figure: CTC − Basic − HRA − Employer EPF Contribution. Many companies use this component to adjust the salary structure so that the total matches the agreed CTC.
Does this calculator include income tax (TDS)?
No. Income tax depends on your tax regime (old vs new), applicable deductions and exemptions (like HRA exemption, Section 80C, standard deduction) and your total taxable income, which varies widely from person to person. This tool focuses on the EPF and professional tax deductions that apply to almost everyone, and gives you a pre-tax in-hand estimate.
What are typical Basic salary and HRA percentages?
Basic salary is commonly structured between 40% and 50% of CTC, and HRA is often 40% (non-metro) or 50% (metro) of Basic salary. These percentages vary by company policy — adjust the inputs to match your actual salary structure for a more accurate estimate.
What is Employee EPF contribution and why is it deducted?
Under the Employees' Provident Fund scheme, you (the employee) contribute 12% of your Basic salary (capped for many employees at a Basic of ₹15,000/month, though many companies apply it on the full Basic) to your EPF account every month. This amount is deducted from your gross pay and deposited into your retirement fund — it isn't lost, but it also isn't part of your monthly in-hand salary. It earns tax-free interest and can be withdrawn on retirement, job change, or under specific conditions.
What is Employer EPF contribution?
The employer also contributes an equal amount (typically 12% of Basic) to your EPF account on your behalf. This is counted as part of your CTC since the company spends it on you, but it goes directly into your EPF account and is never paid out as salary — so it does not appear in your take-home pay or your payslip's gross earnings.
What is Professional Tax?
Professional Tax is a small monthly tax levied by state governments on salaried employees. The amount and slabs vary by state — for example, Maharashtra and Karnataka charge around ₹200/month for most salary levels, while some states (like Haryana) don't levy it at all. It's a fixed deduction (not a percentage of CTC) and is shown separately in your payslip.
Is HRA fully tax-exempt?
Not always. House Rent Allowance (HRA) is partially or fully exempt from income tax under the old tax regime, based on the least of: actual HRA received, rent paid minus 10% of Basic salary, or 50% of Basic (metro) / 40% of Basic (non-metro) — provided you actually pay rent and submit proof. Under the new tax regime, HRA exemption is not available. This calculator treats HRA as a salary component for take-home computation and does not apply tax exemption, since that depends on your tax regime and rent details.
Does CTC always include gratuity?
Many companies include an estimated gratuity provision (typically around 4.81% of Basic salary) as part of CTC, even though gratuity is only paid out after 5 years of continuous service, as per the Payment of Gratuity Act. If your CTC includes a gratuity component, your effective take-home will be lower relative to CTC than this calculator shows, since gratuity provisioning is neither paid monthly nor included in EPF deductions here.
How is income tax estimated in this calculator?
We treat Basic + HRA + Special Allowance as taxable salary income, subtract the standard deduction (₹75,000 under the New Regime, ₹50,000 under the Old Regime, FY 2025-26), apply the relevant slab rates, then apply the Section 87A rebate (zero tax if taxable income is within ₹12,00,000 for the New Regime or ₹5,00,000 for the Old Regime) and add 4% Health & Education Cess. Under the Old Regime, you can also enter "Other Tax Deductions" (80C, 80D, HRA exemption, home loan interest, etc.) to reduce taxable income. This is an estimate — it does not account for marginal relief, bonuses, other income, or employer-specific TDS rules.
Old Regime vs New Regime — which is better?
It depends on how many deductions and exemptions you can claim. The New Regime has lower slab rates and a higher tax-free threshold (effectively up to ₹12 lakh via the 87A rebate) but does not allow most exemptions (HRA, 80C, 80D, home loan interest, etc.). The Old Regime has higher rates but lets you reduce taxable income with these deductions. If your eligible deductions are large (e.g. close to ₹3-4 lakh or more), the Old Regime may work out better; otherwise the New Regime is usually more beneficial. Compare both estimates above and consult a tax advisor before choosing a regime with your employer.
What isn't included in the income tax estimate?
This estimate does not include: income from other sources (interest, rental, capital gains, bonus/variable pay beyond CTC components entered here), marginal relief calculations on the 87A rebate, employer-specific perquisite valuations, or deductions/exemptions other than the single "Other Tax Deductions" field (Old Regime only). It is intended for general planning purposes only and is not tax, financial, or legal advice. For your exact tax liability, please consult a Chartered Accountant or use the official Income Tax Department calculator.
What is the New Regime standard deduction for FY 2025-26?
For FY 2025-26 (AY 2026-27), the New Regime standard deduction is ₹75,000, higher than the ₹50,000 standard deduction under the Old Regime. This calculator applies the correct deduction automatically based on the regime, so the New Regime's effective tax-free income works out higher even before considering the Section 87A rebate.
Why is the Section 87A rebate threshold different for Old vs New Regime?
Under the New Regime for FY 2025-26, the Section 87A rebate makes tax payable zero for taxable income up to ₹12 lakh, while under the Old Regime this rebate only applies up to ₹5 lakh taxable income. This is a key reason the New Regime often results in lower or zero tax for salaries in the ₹5 lakh to ₹12 lakh taxable income range, even without claiming any deductions.