Take Home Pay Calculator: Gross to Net Salary

How Take-Home Pay Is Calculated in India (Tax Year 2026-27)

Your take-home pay is the amount deposited into your bank account each month after statutory and voluntary deductions. This page starts from gross salary. If you only have an annual CTC figure, the in-hand salary calculator converts CTC to monthly pay first.

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Step 1: Gross Salary from CTC

Gross = CTC minus Employer PF (12% of basic, or Rs 3,000/month if your employer caps PF at the Rs 25,000 wage ceiling) minus Gratuity (4.81% of basic). This is what appears on your payslip as total salary before deductions.

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Step 2: Employee PF

You contribute 12% of your basic salary to EPF every month. If your basic is Rs 50,000, that is Rs 6,000/month. If your employer restricts PF to the statutory wage ceiling, which rose from Rs 15,000 to Rs 25,000 on 17 September 2026, it is capped at Rs 3,000/month.

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Step 3: ESI (if applicable)

ESI applies only if monthly gross salary is Rs 21,000 or below. Employee contribution is 0.75% of gross. If you earn more than Rs 21,000/month, ESI does not apply.

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Step 4: Professional Tax

A state-level levy deducted by employers, capped at Rs 2,500/year nationally. Not all states levy it. Delhi, UP, Rajasthan, and Haryana have no Professional Tax.

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Step 5: TDS (Income Tax)

Your employer deducts TDS monthly based on your projected annual tax liability. Divided by 12, this becomes a monthly deduction. Under the new regime, taxable income up to Rs 12 lakh is zero-tax in tax year 2026-27. TDS on salary now falls under Section 392 of the Income-tax Act, 2025 (earlier Section 192).

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Result: Take-Home Pay

Gross Salary minus Employee PF minus ESI minus Professional Tax minus TDS equals your monthly take-home. Typically 70 to 85% of CTC for most salaried employees.

New Tax Regime Slabs for Tax Year 2026-27

The Income-tax Act, 2025 took effect on 1 April 2026 and replaces “financial year” and “assessment year” with a single “tax year”. Budget 2026 kept the new regime slabs (Section 202, earlier Section 115BAC) unchanged. The new regime is the default for salaried employees.

New regime: standard deduction Rs 75,000 (Section 19, earlier 16(ia)). Rebate under Section 156 (earlier 87A) up to Rs 12 lakh taxable income (effective zero tax for salaried income up to Rs 12.75 lakh). 4% Health and Education Cess on tax computed.
Annual Taxable Income	Tax Rate
Up to Rs 4,00,000	Nil
Rs 4,00,001 to Rs 8,00,000	5%
Rs 8,00,001 to Rs 12,00,000	10%
Rs 12,00,001 to Rs 16,00,000	15%
Rs 16,00,001 to Rs 20,00,000	20%
Rs 20,00,001 to Rs 24,00,000	25%
Above Rs 24,00,000	30%

Old Tax Regime Slabs for Tax Year 2026-27

The old regime allows deductions like HRA exemption, 80C (up to Rs 1.5 lakh), home loan interest, NPS (80CCD), and more. Standard deduction is Rs 50,000. Tax rebate under the old regime applies to taxable income up to Rs 5 lakh.

Old regime: standard deduction Rs 50,000. Rebate for taxable income up to Rs 5 lakh. Plus 4% Cess on tax.
Annual Taxable Income	Tax Rate
Up to Rs 2,50,000	Nil
Rs 2,50,001 to Rs 5,00,000	5%
Rs 5,00,001 to Rs 10,00,000	20%
Above Rs 10,00,000	30%

Surcharge applies at 10% on tax if income exceeds Rs 50 lakh, 15% above Rs 1 crore, 25% above Rs 2 crore, and 37% above Rs 5 crore (new regime caps surcharge at 25%). This calculator covers the most common range below Rs 50 lakh; consult a CA for surcharge applicability.

Professional Tax: Key States at a Glance

State	Approx. Monthly PT	Note
Maharashtra	Rs 200 (Rs 300 in Feb)	Nil for gross below Rs 7,500; women exempt up to Rs 25,000
Karnataka	Rs 200 (Rs 300 in Feb)	Nil for gross below Rs 25,000 (revised April 2025)
Tamil Nadu (Chennai)	Up to Rs 1,250 per half-year	Half-yearly; nil if six-month income is Rs 21,000 or less (Greater Chennai Corporation slabs revised 2024-25)
West Bengal	Rs 100 to Rs 208	New schedule from 1 Oct 2026: nil up to Rs 20,000 (reported slabs; confirm with the WB Directorate of Commercial Taxes)
Andhra Pradesh / Telangana	Rs 200	Nil up to Rs 15,000; Rs 150 from Rs 15,001 to Rs 20,000
Gujarat	Rs 200	Nil up to Rs 12,000 (since April 2022)
Kerala	Up to Rs 1,250 per half-year	Half-yearly slabs on six-month income; top slab above Rs 1,25,000
Delhi / UP / Rajasthan / Haryana	Nil	No Professional Tax levied

Worked Example: Rs 1,20,000 Monthly Gross, New Regime

Item	Monthly (Rs)
Gross salary	1,20,000
Basic (50% of gross)	60,000
Employee PF (12% of full basic)	7,200
ESI (gross above Rs 21,000)	0
Professional tax, Maharashtra (Rs 2,500 a year averaged)	208
TDS: taxable Rs 13,65,000 a year, tax Rs 84,750 plus 4% cess = Rs 88,140, divided by 12	7,345
Take-home pay	1,05,247

Professional tax calculator: check the exact slab and February deduction for your state.
ESI calculator: see employee and employer ESI if your gross is Rs 21,000 or less.
Income tax calculator: compare old and new regime tax in detail.
Loss of pay calculator: see how unpaid leave days cut a month's pay.

Running payroll for a growing team? See how GetHirePlus helps with the hiring side on the pricing page.

Sources

Professional tax slabs are set by each state within the Rs 2,500 annual limit in Article 276 of the Constitution. Tamil Nadu, Kerala and West Bengal figures are taken from the respective local body or state notifications as reported; confirm with your employer.

Frequently Asked Questions

The main statutory deductions are Employee PF (12% of basic salary), Professional Tax (up to Rs 2,500/year, state-dependent), ESI (0.75% of gross if monthly gross is below Rs 21,000), and Income Tax/TDS computed on your annual taxable income. Some employers also deduct voluntary NPS contributions or group health insurance premiums.

CTC (Cost to Company) is the total spend by the employer and includes your gross salary plus employer-side costs such as employer PF (12% of basic, or up to Rs 3,000/month where the employer caps PF at the Rs 25,000 wage ceiling) and gratuity provision (4.81% of basic). Take-home is what you actually receive in your bank account after all deductions from gross salary. For most salaried employees, take-home is 70 to 85% of CTC.

Yes, under the new tax regime: after the Rs 75,000 standard deduction (for salaried individuals), if your net taxable income is Rs 12 lakh or below, a tax rebate eliminates your entire tax liability. In practice this means a salaried employee with gross annual income up to Rs 12.75 lakh (Rs 12 lakh + Rs 75,000 standard deduction) pays zero income tax under the new regime in tax year 2026-27. The rebate now sits in Section 156 of the Income-tax Act, 2025 (earlier Section 87A).

ESI (Employee State Insurance) applies when your monthly gross salary is Rs 21,000 or below (Rs 25,000 for employees with disabilities). Employee contribution is 0.75% and employer contribution is 3.25%, both computed on gross wages. Contribution periods are April to September and October to March. If your salary crosses Rs 21,000 mid-period, ESI continues until the end of that period.

For salaried employees with income below Rs 15 lakh and limited deductions, the new regime typically results in equal or lower tax. The old regime benefits those with significant HRA exemptions, home loan interest (Section 24), or heavy 80C investments close to the Rs 1.5 lakh ceiling. The new regime is the default; you must actively opt for the old regime with your employer at the start of the year. Use the toggle in the calculator above to compare both.

HRA exemption under the old regime is the least of: (1) actual HRA received, (2) 50% of basic salary in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad (the eight-city list applies from tax year 2026-27 under the Income-tax Rules, 2026) or 40% elsewhere, and (3) actual rent paid minus 10% of basic salary. Only rent exceeding 10% of basic is eligible. Under the new regime, no HRA exemption is available.

No. Professional Tax is a state-level levy and varies by state and salary slab. The constitution caps it at Rs 2,500 per financial year. Maharashtra and Karnataka charge up to Rs 200/month (with a higher deduction in February). Delhi, Uttar Pradesh, Rajasthan, and Haryana levy no Professional Tax at all.

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Disclaimer: Formulas based on the Income-tax Act, 2025, the Code on Social Security, 2020 (EPF and ESI), and state professional tax rules as of tax year 2026-27. This tool is for informational purposes only and does not constitute financial or tax advice. Consult a qualified CA for your specific situation.

Take Home Pay Calculator: Monthly Gross to Net Pay