Salary Calculator India

How this salary calculator works

Your CTC (cost to company) is the total your employer spends on you — not what reaches your bank account. First come the statutory deductions: 12% of your basic salary goes into EPF, a flat ₹2,500 a year goes to professional tax, and income tax applies on what's left. This calculator uses the new-regime slabs with the ₹75,000 standard deduction for salaried employees, then divides the remainder by 12.

The formula, step by step

1. EPF = 12% × annual basic salary
2. Taxable income = CTC − EPF − ₹75,000 (standard deduction)
3. Income tax on the taxable income, using the new-regime slabs below:

   Taxable income	Tax rate
   Up to ₹4,00,000	Nil
   ₹4,00,001 – ₹8,00,000	5%
   ₹8,00,001 – ₹12,00,000	10%
   ₹12,00,001 – ₹16,00,000	15%
   ₹16,00,001 – ₹20,00,000	20%
   ₹20,00,001 – ₹24,00,000	25%
   Above ₹24,00,000	30%

4. Section 87A rebate: if your taxable income is ₹12,00,000 or less, the rebate wipes your tax out — you pay zero. Just above ₹12 lakh, marginal relief caps your tax at the extra income above ₹12 lakh, so crossing the threshold never costs you more than the extra you earned.
5. 4% health and education cess on the tax after rebate.
6. Monthly in-hand = (CTC − EPF − professional tax − income tax) ÷ 12.

Worked example

Say your CTC is ₹12,00,000, your basic is ₹6,00,000 and HRA is ₹2,40,000:

• EPF = 12% × ₹6,00,000 = ₹72,000
• Taxable income = ₹12,00,000 − ₹72,000 − ₹75,000 = ₹10,53,000
• Slab tax = 5% of ₹4,00,000 + 10% of ₹2,53,000 = ₹20,000 + ₹25,300 = ₹45,300
• Section 87A: taxable income is below ₹12,00,000, so tax = ₹0
• Annual in-hand = ₹12,00,000 − ₹72,000 − ₹2,500 − ₹0 = ₹11,25,500
• Monthly in-hand = ₹11,25,500 ÷ 12 = ₹93,792

India-specific notes

• New regime is the default since FY 2023-24. Most salaried employees fall under these slabs unless they opt for the old regime.
• The new regime allows no HRA exemption or 80C deductions. If you claim those, switch to the old regime and check the income tax calculator.
• Professional tax is a state levy. Maharashtra, Karnataka, West Bengal and several other states charge it; some don't. ₹2,500 a year is a common ceiling.
• EPF is mandatory on basic wages up to ₹15,000 a month in covered establishments. Many employers apply 12% on the full basic. Your employer also contributes 12%, split between EPF and EPS.
• Variable pay, bonuses and overtime usually come separately and are taxed in the month they're paid — this estimate doesn't include them.

How to use this salary calculator

1. Enter your annual CTC — the total cost-to-company figure from your offer letter or latest appraisal.
2. Enter your annual basic salary — usually 40–50% of CTC. Your EPF is worked out from this figure.
3. Enter your annual HRA if you know it. It is informational here, because the new regime used by this calculator does not claim HRA exemption.
4. Pick your city type — metro or non-metro — then press Calculate.
5. Read the monthly in-hand salary first, then check the breakup cards below it: annual in-hand, EPF, income tax, professional tax and taxable income.

The CTC breakup method, in one line

That one line is the whole method this calculator follows, using the steps set out above. EPF is 12% of your basic salary. Professional tax is a flat ₹2,500 a year. Income tax is worked out on your taxable income — CTC minus EPF and the ₹75,000 standard deduction — using the new-regime slabs, with the Section 87A rebate, marginal relief just above ₹12 lakh, and 4% health and education cess added at the end. Whatever is left after the three deductions is your annual in-hand salary, and dividing it by 12 gives the monthly figure.