Salary Calculator — CTC to In-Hand 2026
Convert your CTC to monthly take-home salary. Compare old vs new tax regime side-by-side with HRA exemption, EPF deductions, professional tax, and Section 80C/80D savings.
Last updated: 2026-03-28
Found an error?
Help us keep calculations accurate. Report any issues you find.
Important: This calculator provides estimates based on the inputs and assumptions you provide. Results are mathematical projections, not financial advice or recommendations. Actual outcomes will vary based on market conditions, policy changes, individual circumstances, and factors not captured by this tool. Verify all figures independently and consult qualified professionals before making financial decisions.
How to Calculate In-Hand Salary from CTC
Your CTC (Cost to Company) is not what you take home. It includes employer contributions like PF, gratuity, and insurance that never hit your bank account. Here's how to calculate your actual in-hand salary.
CTC Breakdown
A typical Indian CTC is structured as:
- Basic Salary — 40-50% of CTC. This determines your PF, HRA, and gratuity.
- HRA — 40-50% of Basic. Tax-exempt if you pay rent (old regime only).
- Special Allowance — The remaining amount. Fully taxable.
- Employer PF — 12% of Basic. Employer's contribution to your EPF account.
Worked Example: ₹12 LPA CTC
For a salaried employee in Bangalore (metro) paying ₹15,000/month rent:
| Component | Annual | Monthly |
|---|---|---|
| Basic Salary (40%) | ₹4,80,000 | ₹40,000 |
| HRA (50% of Basic) | ₹2,40,000 | ₹20,000 |
| Special Allowance | ₹4,22,400 | ₹35,200 |
| Employer PF (12%) | ₹57,600 | ₹4,800 |
| CTC | ₹12,00,000 | ₹1,00,000 |
Old vs New Tax Regime: Which Is Better?
The new tax regime (default from FY 2023-24) has lower slab rates but removes most deductions. The old regime has higher rates but allows deductions under 80C, 80D, HRA, and more.
Choose the old regime if your total deductions (80C + 80D + HRA + NPS + home loan interest) exceed ₹3-4 lakh annually.
Choose the new regime if you don't have significant deductions or if your CTC is below ₹12 lakh (effectively tax-free under new regime).
Professional Tax by State
Professional Tax is a state-level tax deducted from your salary. The maximum is ₹2,500/year (₹200/month in most states).
| State | Monthly PT | Annual PT |
|---|---|---|
| Maharashtra | ₹200 | ₹2,400 |
| Karnataka | ₹200 | ₹2,400 |
| Telangana | ₹200 | ₹2,400 |
| West Bengal | ₹200 | ₹2,400 |
| Delhi | ₹0 | ₹0 |
| Tamil Nadu | ₹0 | ₹0 |
| Uttar Pradesh | ₹0 | ₹0 |
Tax-Saving Deductions (Old Regime)
- Section 80C (₹1.5L) — ELSS, PPF, EPF, Life Insurance, NSC, SSY, 5-year FD
- Section 80D (₹25K-₹1L) — Health insurance premium for self, spouse, children, and parents
- Section 80CCD(1B) (₹50K) — Additional NPS contribution (available in both regimes)
- HRA Exemption — Based on rent paid, basic salary, and city (metro vs non-metro)
- Standard Deduction (₹75K) — Available in both regimes from FY 2025-26
Frequently Asked Questions
How is in-hand salary calculated from CTC?
In-hand salary = CTC − Employer PF − Employee PF − Professional Tax − Income Tax. Your CTC includes basic salary, HRA, special allowance, and employer PF contribution. After subtracting all deductions and taxes, the remaining amount is your monthly take-home pay.
What percentage of CTC is basic salary?
Most Indian companies set basic salary at 40-50% of CTC. A higher basic means higher EPF and gratuity contributions (good for retirement) but also higher taxable income. Some companies keep basic at 40% to optimize tax efficiency.
Which tax regime is better for salaried employees in 2026?
It depends on your deductions. The new regime (default from FY 2023-24) has lower slab rates but fewer deductions. If your total deductions under 80C, 80D, HRA, and NPS exceed ₹3-4 lakh, the old regime may save more tax. Use this calculator to compare both side-by-side.
What is Professional Tax and which states charge it?
Professional Tax is a state-level tax on salaried individuals, capped at ₹2,500/year. States like Maharashtra, Karnataka, West Bengal, and Telangana charge ₹200/month. Delhi, Tamil Nadu, and UP do not charge Professional Tax.
How does HRA exemption work?
HRA exemption under Section 10(13A) is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic for metro cities or 40% for non-metro. This exemption is available only in the old tax regime.
What is the standard deduction for FY 2025-26?
The standard deduction is ₹75,000 for FY 2025-26 (increased from ₹50,000 in Budget 2024). It is available in both old and new tax regimes for salaried employees.
Does EPF contribution reduce taxable income?
Yes, employee EPF contribution qualifies for deduction under Section 80C (up to ₹1.5 lakh) in the old regime. In the new regime, 80C deductions are not available, but EPF still reduces your gross salary.
How much can I save with NPS under Section 80CCD(1B)?
You can claim an additional deduction of up to ₹50,000 under Section 80CCD(1B) for NPS contributions. This is over and above the ₹1.5 lakh limit of Section 80C. This deduction is available in both old and new tax regimes.
What is CTC vs gross salary vs net salary?
CTC (Cost to Company) includes everything your employer spends — salary, PF, gratuity, insurance. Gross salary is CTC minus employer contributions (PF, gratuity). Net/in-hand salary is gross minus employee PF, professional tax, and income tax.
How much salary is tax-free in India?
Under the new regime, income up to ₹12 lakh (after standard deduction of ₹75,000) is effectively tax-free due to the Section 87A rebate. Under the old regime, income up to ₹5 lakh is tax-free after all deductions.
Related Resources
Calculators
- Tax Regime — Old vs New tax regime — see which saves more with all deductions: 80C, 80D, HRA, NPS & more.
- HRA — Calculate HRA tax exemption under Section 10(13A). See all 3 rules and find your maximum tax-free allowance.
- Gratuity — Calculate gratuity using the Payment of Gratuity Act 1972 formula. Covers covered and non-covered employees, rounding rules, and Sec 10(10) tax exemption up to ₹20 lakh.
Comparisons
- Old vs New Regime — Side-by-side tax regime comparison with slab tables, deduction matrix, and decision tree.
Disclaimer
This calculator provides estimates based on FY 2025-26 tax rules and standard CTC structures. Actual in-hand salary may vary based on your employer's specific salary structure, additional benefits, variable pay, and applicable surcharges. This is not tax advice — consult a chartered accountant for personalised tax planning.