Salary Calculator India

How this salary calculator works

Most Indian job offers and appraisal letters quote an annual CTC (Cost to Company) figure, not the amount that actually lands in your bank account. Type your CTC into the first calculator above, choose roughly what share of it is basic pay, then pick a tax regime: the tool works out employer PF, gratuity, your real gross salary, income tax and your own PF deduction, arriving at a monthly take-home figure. The new tax regime is selected by default because it has been the default regime for salaried individuals since FY2023-24.

If you already know your exact gross salary (for example, from a payslip that already separates CTC from take-home) rather than a CTC offer figure, skip straight to the second calculator further down, which computes tax directly on a gross salary with no CTC breakdown needed.

If you choose the old regime in either calculator, an extra field appears for your combined deductions (Section 80C investments, Section 80D health insurance premiums, HRA exemption, home loan interest and so on). Enter the total amount you actually claim, and the calculator applies it before working out tax on what remains.

• Income tax across every applicable slab, for both the new and old regimes
• The Section 87A rebate, which can bring your tax to zero below a threshold
• Surcharge, for incomes above Rs 50 lakh
• 4% health and education cess on the final tax figure
• A final take-home figure, shown in the same period you entered

New tax regime slabs, FY2026-27

The new tax regime is a simplified, lower-rate structure that does not allow most deductions and exemptions, in exchange for wider slabs and lower rates than the old regime. It has been the default regime since FY2023-24, and the Union Budget 2026 made no changes to it: the slabs below carry forward unchanged from FY2025-26.

Because the system is stepped, someone with a taxable income of Rs 15,00,000 is not taxed at 15% on the whole amount. Only the last Rs 3,00,000 sits in the 15% band; everything below it is taxed at the lower rates that apply to each earlier slab. This calculator applies the full slab structure automatically, so you never need to work it out by hand.

Old tax regime slabs, FY2026-27

The old regime keeps its higher, simpler slab structure but allows a wide range of deductions and exemptions (Section 80C, 80D, HRA, home loan interest, and more) that the new regime does not. It is optional: you must actively choose it, usually by informing your employer at the start of the financial year or while filing your return.

These slabs are unchanged for FY2026-27. The old regime tends to work out cheaper for people with substantial deductions to claim, typically a home loan, a large 80C investment, or high HRA relative to their basic pay. See the old vs new tax regime comparison for a side-by-side worked example.

Standard deduction and the Section 87A rebate

Every salaried person and pensioner gets a standard deduction subtracted from gross salary before tax is calculated, no receipts or proof needed. In the new regime it is Rs 75,000 a year; in the old regime it is Rs 50,000. This calculator applies the correct figure automatically based on the regime you select.

On top of that, Section 87A gives a rebate that can wipe out tax entirely for lower and middle incomes. In the new regime, if your taxable income (after the standard deduction) is Rs 12,00,000 or less, the rebate cancels up to Rs 60,000 of tax, which is enough to bring the bill to zero at that level. Including the Rs 75,000 standard deduction, that means a gross salary of up to roughly Rs 12,75,000 can attract no income tax at all under the new regime. In the old regime, the same mechanism applies at a much lower Rs 5,00,000 taxable-income threshold, with a maximum rebate of Rs 12,500.

One limitation worth knowing: this calculator does not model marginal relief, the provision that softens the effect of crossing just over one of these thresholds. If your income sits within a few thousand rupees of Rs 12,00,000 (new regime) or Rs 5,00,000 (old regime), the figure here may be slightly higher than the exact amount after marginal relief is applied, so check the Income Tax Department's own calculator for a precise number right at that boundary.

Surcharge and health and education cess

Two further charges apply on top of the slab tax. A surcharge kicks in once taxable income passes Rs 50,00,000: 10% between Rs 50 lakh and Rs 1 crore, 15% between Rs 1 crore and Rs 2 crore, and 25% above Rs 2 crore. In the old regime a further 37% band applies above Rs 5 crore; the new regime caps the surcharge at 25% regardless of how high income goes, since the top surcharge band was removed from the new regime starting FY2023-24.

A 4% health and education cess then applies to the tax-plus-surcharge total, for every taxpayer regardless of income level. There is no threshold below which cess does not apply: it is charged on any positive tax liability, however small.

Three worked examples

These examples use the new regime with no additional deductions, so you can see how the numbers stack up at different salary levels. Your own figure may differ if you choose the old regime instead, which is exactly what the calculator above is for.

Notice that the Rs 8,00,000 salary pays no tax at all: its taxable income of Rs 7,25,000 is below the Rs 12,00,000 Section 87A threshold, so the full tax otherwise due is rebated away. On the Rs 15,00,000 salary, take-home pay works out to roughly Rs 1,16,875 a month. If you would rather focus specifically on the tax figure itself, the income tax calculator is framed around exactly that, and if your pay is quoted as a CTC (Cost to Company) figure rather than a plain salary, the in-hand salary calculator accounts for the employer PF and gratuity that CTC includes but your salary does not.

CTC, gross salary and in-hand pay are not the same number

Indian job offers are usually quoted as an annual CTC (Cost to Company) figure, which is not the same as your gross salary. CTC includes costs your employer bears on your behalf that never reach your bank account, mainly the employer's own Provident Fund contribution and a gratuity provision. Your actual gross salary, the figure income tax is calculated on, is CTC minus those two components, typically 8 to 10% lower than the headline CTC number.

The first calculator on this page handles the full CTC breakdown for you. If you already know your gross salary directly (for example, from a payslip or an offer letter that separates CTC from take-home), the second calculator further down skips the CTC breakdown and calculates tax on that figure directly. For an even more detailed CTC breakdown with a state professional-tax toggle, see the dedicated in-hand salary calculator page.

New regime or old regime: a quick guide

The new regime usually works out cheaper if you have few deductions to claim: no home loan, a modest or no 80C investment, and HRA that would not exceed the new regime's already-generous Rs 75,000 standard deduction. Because it is now the default, most salaried employees are automatically on it unless they specifically opt out.

The old regime tends to win once your deductions add up to a meaningful share of your income, commonly a combination of a home loan's interest, a full Rs 1,50,000 Section 80C investment, health insurance premiums under Section 80D, and a substantial HRA claim in a metro city. There is no universal answer: the only reliable way to know is to calculate both and compare, which is exactly what the old vs new tax regime comparison page is built to do, side by side, for your own numbers.

Government and public-sector pay

If your salary is set by the 7th Central Pay Commission's Pay Matrix rather than a private CTC structure, the calculations above still apply once you know your gross monthly pay: enter your Basic Pay plus Dearness Allowance (and any other allowances you receive) as your salary figure. The 7th Pay Commission Pay Matrix tool shows the official starting basic pay for every Pay Level from 1 to 18, plus the current Dearness Allowance rate, so you can build up that gross figure first if you only know your Pay Level.

How accurate is this estimate?

This is an independent estimate tool, built directly from the income tax slabs, standard deduction, Section 87A rebate, surcharge and cess rules published for FY2026-27. It is not affiliated with the Income Tax Department or the Government of India, and it does not replace a payslip, Form 16, or a formal tax computation from a chartered accountant.

The tool covers salaried income under both regimes. It does not model marginal relief at the rebate or surcharge thresholds (see the note above), and in the old regime it accepts your deductions as a single combined figure rather than validating each section's own cap or computing HRA exemption from rent, city and basic pay, since that calculation depends on details this tool does not collect. If your income sits close to a threshold, or your deduction claims are complex, treat this as a starting estimate and confirm the exact figure with the Income Tax Department's own tools or a qualified tax professional.