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CTC to In-Hand Salary Calculator 2026-27

See exactly what lands in your bank account. EPF, professional tax, and income tax all broken down — old vs new regime.

✓ FY 2026-27  ·  ✓ Old & New Regime  ·  ✓ EPF + PT Included
Salary Details
₹12L
40%
Typically 40–50% of CTC
City (Professional Tax)
Results update automatically as you type
Monthly In-Hand (New Regime)
After all deductions
₹0
Annual CTC₹0
Gross Monthly Salary₹0
Employee EPF (12% of Basic)₹0
Professional Tax₹0
Income Tax (New Regime)₹0
Income Tax (Old Regime)₹0
Monthly Breakup
Basic₹0
HRA (50% of Basic)₹0
Special Allowance (Rest)₹0

What is CTC and In-Hand Salary?

CTC (Cost to Company) is the total annual expenditure a company bears for an employee — including basic salary, HRA, allowances, employer EPF, and gratuity. In-hand salary (take-home pay) is the actual amount credited to your bank account after all deductions. CTC and in-hand can differ by 20–35% depending on your tax bracket.

How is In-Hand Salary Calculated?

In-hand salary is derived by subtracting all mandatory and voluntary deductions from your gross salary.

In-Hand = Gross Salary − Employee EPF − Professional Tax − Income Tax Gross Salary = Basic + HRA + Special Allowance + Other Allowances Employee EPF = 12% of Basic Salary (capped at ₹15,000 basic) Professional Tax = Up to ₹2,500/year (state-dependent) Income Tax = Based on old or new regime slabs

Salary Calculation Example

Suppose your CTC is ₹12,00,000 per annum (New Tax Regime, Mumbai):

Monthly Gross: ₹1,00,000 Employee EPF (12% of Basic ~₹40K): ₹4,800 Professional Tax: ₹200 Income Tax (New Regime): ₹0 (within ₹12L rebate limit) Monthly In-Hand: ₹94,800 to ₹95,000

Old Regime vs New Regime — Which is Better?

Under the New Tax Regime (2026-27), income up to ₹12 lakh is effectively tax-free for salaried employees (after ₹75,000 standard deduction + Section 87A rebate). No deductions like 80C, HRA, or home loan are available. Under the Old Regime, you can claim HRA, 80C (₹1.5L), 80D (health insurance), home loan interest, and more — better if total deductions exceed ₹3–4 lakh.

Who Uses a Salary Calculator?

Freshers negotiating first salary packages, employees evaluating job offers, HR professionals computing payroll, and anyone wanting to understand their CTC breakup and actual take-home pay. Especially useful when comparing two job offers with different CTC structures.

EPF and Gratuity in CTC

Employer EPF (12% of basic) and gratuity contribution are part of your CTC but never appear in your monthly salary. They go toward your PF account and long-term gratuity fund respectively. This is why a ₹12L CTC doesn’t mean ₹1L/month in hand.

Related Calculators

Check HRA exemption with our HRA Calculator. Compare old vs new regime in detail with our Income Tax Calculator. See how much gratuity you’ll receive with our Gratuity Calculator.

Frequently Asked Questions

What is CTC and how is it different from in-hand salary? ⌄
CTC (Cost to Company) is the total annual cost your employer bears for you. In-hand salary is what you actually receive after deducting employee EPF, professional tax, and income tax. CTC also includes employer EPF and gratuity which you never receive monthly.
What is the EPF deduction rate? ⌄
Both employee and employer contribute 12% of basic salary to EPF. The employee's 12% is deducted from your in-hand salary. The employer's 12% is usually part of your CTC but you don't receive it monthly — it goes to your PF account.
What is Professional Tax? ⌄
Professional Tax is a state-level tax on employment income. It is capped at ₹2,500/year nationally. States like Maharashtra, Karnataka, West Bengal, and Tamil Nadu levy it. Some states like Delhi and Rajasthan do not have professional tax.
Is ₹12 lakh CTC really tax-free under the new regime? ⌄
Yes — for salaried individuals. The ₹75,000 standard deduction brings taxable income to ₹11.25L on a ₹12L salary, and Section 87A rebate covers tax up to ₹12.75L net income. So effectively, up to ₹12L CTC results in zero income tax under the new regime.