In-Hand Salary Calculator
Turn a CTC offer into the amount that actually reaches your bank account — PF, professional tax by state, and income tax under both regimes, for FY 2025-26 (AY 2026-27).
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Ready when you are
Adjust the inputs on the left to see your monthly in-hand.
The gap between the CTC on your offer letter and the money that lands in your account each month is larger than most people expect, and almost none of it is negotiable once you have signed.
Where a ₹12 lakh CTC actually goes
Take a ₹12,00,000 CTC with basic set at 40%, working in Karnataka, on the new tax regime.
| Annual | |
|---|---|
| CTC on the offer letter | ₹12,00,000 |
| Less: employer PF contribution | −₹57,600 |
| Gross salary | ₹11,42,400 |
| Less: your own PF contribution | −₹57,600 |
| Less: professional tax (Karnataka) | −₹2,400 |
| Less: income tax | −₹0 |
| Annual in-hand | ₹10,82,400 |
| Monthly in-hand | ₹90,200 |
₹1,17,600 of that CTC never reaches your account in cash — it goes into your EPF, which is your money but locked. The "₹1 lakh a month" job pays ₹90,200.
The employer PF line is the one people miss
Indian CTC includes the employer's PF contribution, which is 12% of basic. It is genuinely yours, and it compounds at the EPFO rate, but it is not salary. Two offers with identical CTC but different basic percentages produce different take-home: a higher basic means more PF on both sides, which means less cash now and more retirement corpus later.
This is worth checking before you compare offers. A ₹14 lakh CTC at 50% basic and a ₹14 lakh CTC at 30% basic differ by roughly ₹33,600 a year in cash.
Professional tax depends on where you sit, not where you are paid
Professional tax is a state levy, capped at ₹2,500 a year by Article 276 of the Constitution. Karnataka, Maharashtra, West Bengal, Tamil Nadu, Telangana and several others charge it. Delhi, Uttar Pradesh, Haryana and Rajasthan do not charge it at all.
It is a small number, but it is the reason a national "in-hand salary calculator" that ignores your state is wrong for every user — either by ₹2,500 or by nothing, and it cannot tell which.
The regime choice is where the real money is
Under the new regime, income up to ₹12,75,000 for a salaried person is entirely tax-free, because the ₹75,000 standard deduction brings taxable income to ₹12,00,000 and the Section 87A rebate wipes out the tax on that.
But the new regime allows almost no deductions. No 80C, no 80D, no HRA exemption, no Section 24(b) on a self-occupied home loan. The old regime allows all of them but has higher rates and a much smaller standard deduction.
At a ₹15,00,000 salary the new regime charges ₹97,500. The old regime charges ₹1,95,000 if you claim ₹2,00,000 of deductions — twice as much. You would need to be claiming ₹5,43,750 of deductions before the old regime catches up.
That break-even figure is the whole decision, and most salaried people never compute it. Our old vs new regime calculator works it out for your own salary.
What this calculator assumes
- You are a salaried individual under 60.
- PF is computed on your actual basic, which is what most private employers do. Some restrict it to the ₹15,000 statutory wage ceiling, which raises take-home and lowers your EPF.
- Gratuity, if it appears in your CTC, is not deducted here — it is not paid monthly and you only receive it after five years.
- Variable pay and bonuses are treated as part of CTC rather than modelled separately.
Figures are for FY 2025-26 (AY 2026-27). Slabs, the standard deduction and the 87A rebate all move in the Union Budget — check the year shown on the page before relying on it in April.
In-Hand Salary — frequently asked questions
Why is my in-hand salary so much lower than my CTC?
Three things sit between them. The employer PF contribution is inside CTC but never reaches you in cash. Your own PF contribution is deducted from gross. Then income tax and state professional tax come off what is left. On a ₹12,00,000 CTC at 40% basic in Karnataka, that is ₹1,17,600 of PF plus ₹2,400 of professional tax, leaving ₹10,82,400 a year — ₹90,200 a month.
Does a higher basic salary mean more or less take-home?
Less cash now, more retirement corpus. PF is 12% of basic from both you and your employer, so raising basic from 30% to 50% of CTC on a ₹14 lakh package moves roughly ₹33,600 a year out of your bank account and into EPF. It is not lost — it compounds at the EPFO rate and is tax-free after five years of service — but it is not spendable this month.
Which states charge professional tax?
It is a state levy capped at ₹2,500 a year. Maharashtra, Karnataka, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Gujarat, Kerala, Madhya Pradesh, Odisha, Bihar, Assam and Punjab charge it. Delhi, Uttar Pradesh, Haryana and Rajasthan do not. The calculator applies your state’s figure because a national average would be wrong for everyone.
Should I pick the old or the new tax regime?
Compute your break-even deduction rather than following a rule of thumb. At a ₹15,00,000 salary the new regime charges ₹97,500 and the old regime charges ₹1,95,000 with ₹2,00,000 of deductions — you would need ₹5,43,750 of deductions before the old regime wins. Most salaried people claim nowhere near that, which is why the new regime suits the majority. If you have a large home-loan interest deduction under Section 24(b), run the numbers before assuming.
Is income up to ₹12.75 lakh really tax-free?
For a salaried person on the new regime, yes. The ₹75,000 standard deduction brings a ₹12,75,000 salary down to ₹12,00,000 of taxable income, and the Section 87A rebate cancels the ₹60,000 of tax that would otherwise apply at that level. One rupee more and the rebate is lost entirely, so the tax jumps sharply just above the threshold.
Does this include gratuity and variable pay?
Gratuity is not deducted from monthly take-home here — it is not paid monthly, and you are only entitled to it after five years of continuous service. Use the gratuity calculator for that separately. Variable pay and bonuses are treated as part of CTC; if a large share of your package is a performance bonus paid annually, your actual monthly cash will be lower than shown and the bonus month much higher.
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Results from this calculator are estimates for informational use only — not financial, medical, or professional advice. Read our full disclaimer before acting on any number you see here.