CTC to In-Hand Salary Calculator 2026
Turn your CTC into a real monthly take-home number. Accounts for PF (employer & employee), gratuity, professional tax, and a new-regime income-tax estimate for FY 2025-26 / 2026-27.
Enter Your CTC
Assumptions & simplifications
- New tax regime, FY 2025-26 / 2026-27: nil to ₹4L, then 5/10/15/20/25/30% slabs; ₹75,000 standard deduction; §87A rebate to ₹12L taxable; 4% cess. No old-regime exemptions (80C, HRA exemption, home loan) are modelled.
- Basic is a % of CTC (default 40%); HRA is 50% (metro) / 40% (non-metro) of basic — a representative split, not your actual one.
- Employer & employee PF at 12% of basic (or of ₹15,000 wage if you cap it). Employer PF and a 4.81% gratuity provision are treated as part of CTC, not cash.
- Professional tax is state-dependent (max ₹2,500/yr); default ₹2,500 — set to 0 for states like Delhi / UP / Haryana.
- Assumes a fixed CTC with no variable pay / bonus split. Figures are indicative, not a payslip.
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The first two subtractions turn CTC into your gross salary — they are employer contributions that build your retirement corpus, not cash you receive. The last three are the deductions taken out of your gross before it hits your bank account. Income tax uses the new regime (₹75,000 standard deduction, Section 87A rebate up to ₹12L taxable), which makes salaried income up to about ₹12.75L tax-free.
Frequently Asked Questions
How is in-hand salary calculated from CTC?
CTC (Cost to Company) includes components you never receive in cash — the employer's PF contribution and gratuity provision. To get in-hand: start from CTC, remove employer PF and gratuity to get your gross salary, then subtract your own deductions — employee PF (12% of basic), professional tax, and income-tax TDS. What remains, divided by 12, is your monthly take-home.
Why is my in-hand salary much lower than my CTC?
Two reasons. First, CTC bundles in employer contributions (PF and gratuity) that go into your retirement corpus, not your bank account. Second, your gross is reduced by employee PF, professional tax, and income tax before it reaches you. Together these can be 15–30% of CTC, which is why take-home feels far below the CTC figure on your offer letter.
What income-tax regime does this calculator use?
It uses the new tax regime for FY 2025-26 and FY 2026-27, which is the default regime. Slabs: nil up to ₹4L, 5% ₹4–8L, 10% ₹8–12L, 15% ₹12–16L, 20% ₹16–20L, 25% ₹20–24L, 30% above ₹24L. With the ₹75,000 standard deduction and the Section 87A rebate, salaried income up to ₹12.75L pays zero tax. A 4% health & education cess is added on the tax.
How much PF is deducted from salary?
The employee contributes 12% of basic pay to EPF, and the employer contributes a matching 12% (of which ₹1,250 goes to the pension fund EPS and the rest to EPF). This calculator deducts the employee's 12% from your gross to compute take-home; the employer's 12% is part of CTC, not a deduction from your salary. Some employers cap PF at the ₹15,000 statutory wage — you can toggle that below.
What is professional tax and how much is it?
Professional tax is a state-level tax on salaried income, capped at ₹2,500 per year. States like Maharashtra, Karnataka, West Bengal, and Tamil Nadu levy it (typically about ₹200 a month); states like Delhi, Uttar Pradesh, and Haryana do not levy it at all. This calculator assumes about ₹200 a month (₹2,500 a year) by default — adjust or set it to zero for your state.