What This Calculator Estimates
Indian salaries typically follow a Cost to Company (CTC) structure, with take-home pay reduced by income tax under the New Tax Regime (the current default). This calculator computes your exact tax using the FY 2026-27 New Regime slabs, the ₹75,000 standard deduction, the Section 87A rebate (with marginal relief above ₹12 lakh taxable income), and 4% cess — automatically from your gross salary. It does not account for EPF, professional tax, HRA exemption, or the Old Regime's deductions, which vary by employer and state.
How to Use This Calculator
- Enter your annual gross salary in INR.
- Click Calculate Tax & Take-Home Pay.
- Review your exact taxable income, tax, cess, and net pay.
Worked Example
On an ₹18,00,000 annual gross salary: after the ₹75,000 standard deduction, taxable income is ₹17,25,000. Slab tax = ₹1,20,000 (cumulative tax up to ₹16 lakh) plus 20% on the remaining ₹1,25,000 (₹25,000) = ₹1,45,000. Since this exceeds the ₹5,25,000 excess over ₹12 lakh, marginal relief does not apply here. Adding 4% cess (₹5,800) gives total tax of ₹1,50,800, leaving a net take-home salary of ₹16,49,200/year.
Official Sources
Related Calculators
Income Tax Calculator India · Salary Calculator UK · Salary Calculator Canada
Tips for a More Accurate Estimate
- Understand your CTC breakdown — ask your employer for a detailed CTC-to-net breakdown if unclear.
- Pair this with the Income Tax Calculator India for a precise TDS estimate.
- Use the HRA Calculator India if you pay rent, since it can meaningfully reduce taxable income.
- Check whether professional tax applies in your state.
- Factor in EPF employee contribution as a mandatory deduction from gross to net pay.
Frequently Asked Questions
Why is CTC different from take-home salary in India?
CTC includes employer contributions (like EPF and insurance) and sometimes non-cash benefits that never reach your bank account, so take-home pay is meaningfully lower than the headline CTC figure.
What deductions typically reduce gross salary to net salary?
Income tax (TDS), employee EPF contribution, professional tax (in applicable states), and sometimes other benefit deductions reduce gross salary to net take-home pay.
Does this calculator compute exact TDS automatically?
It computes your exact New Regime income tax liability (slabs, standard deduction, 87A rebate, and cess) automatically. It does not factor in EPF, professional tax, or HRA exemption, which affect your actual TDS deduction.
What is professional tax and does it apply everywhere in India?
Professional tax is a state-level tax on employment income, and it only applies in certain states — check whether your state levies it and at what rate.
How does HRA exemption affect my net salary?
HRA exemption reduces your taxable income if you pay rent, which can lower your TDS and increase your effective take-home pay — use the HRA Calculator India to estimate this separately.
Last updated: May 11, 2026