In-hand salary calculator
The number HR quoted vs the number your bank sees. Enter your annual gross — both regimes are computed side by side, with every rupee of the math on display.
How the in-hand salary is calculated
Take-home pay = gross salary − employee EPF − professional tax − income tax. EPF is 12% of Basic + DA. Professional tax is a state levy capped at ₹2,500/year and directly reduces take-home; it is deductible from taxable income only in the old regime.
New regime (default), FY 2026-27
Standard deduction ₹75,000. Slabs: nil up to ₹4L, then 5% (₹4–8L), 10% (₹8–12L), 15% (₹12–16L), 20% (₹16–20L), 25% (₹20–24L), 30% above ₹24L. A Section 87A rebate (up to ₹60,000) makes taxable income up to ₹12,00,000 tax-free — so a salaried person pays no tax up to about ₹12.75 lakh gross. Just above ₹12L, marginal relief caps the tax at the amount by which income exceeds ₹12L. Chapter-VI-A deductions (80C, 80D, HRA, etc.) and professional tax are not allowed here.
Old regime, FY 2026-27
Standard deduction ₹50,000, plus 80C (₹1.5L), 80D, HRA, home-loan interest (₹2L), NPS 80CCD(1B) (₹50k) and more. Slabs: nil up to ₹2.5L (₹3L for age 60–80, ₹5L for 80+), 5% (₹2.5–5L), 20% (₹5–10L), 30% above ₹10L. The 87A rebate (₹12,500) makes taxable income up to ₹5L tax-free.
A 4% health & education cess applies to the tax in both regimes; a surcharge applies at incomes above ₹50 lakh (capped at 25% in the new regime).
Questions people ask
Is ₹12.75 lakh salary really tax-free in FY 2026-27?
Effectively yes, under the new regime: the ₹75,000 standard deduction brings a ₹12.75 lakh gross salary down to ₹12 lakh taxable, and the Section 87A rebate (up to ₹60,000) wipes out the tax on that. You still pay EPF and professional tax, so in-hand is not the full gross.
What happens just above ₹12 lakh taxable income?
Marginal relief kicks in: your tax is capped at the amount by which taxable income exceeds ₹12,00,000, so earning slightly more never leaves you worse off after tax. Normal slab tax takes over at roughly ₹12.7 lakh taxable.
Which regime is better — old or new?
It depends on your deductions. The new regime allows only the ₹75,000 standard deduction but has lower rates and the big 87A rebate. The old regime allows HRA, 80C, 80D and home-loan interest but at steeper slabs. This page computes both side by side for your inputs so you can compare the actual in-hand amounts.
Does this calculator include HRA, 80C and other deductions?
Yes — switch to the old regime and fields appear for 80C, 80D, HRA exemption, home-loan interest, NPS 80CCD(1B) and other deductions. In the new regime these are not allowed by law, so only the standard deduction applies.
For information only — not tax advice. This estimates income tax on salary; it does not model every allowance, perquisite, employer-specific structure or other income. Verify against the Income Tax Department before filing or making decisions.