Tax year 2026-27 · Income-tax Act 2025
In-hand salary calculator
Type your CTC from the offer letter. See your monthly take-home under the new and old tax regimes, with PF, HRA and your state’s professional tax. Nothing you type leaves this device.
Best for you: —
—
take-home per month
From CTC to take-home
| Item | Year | Month |
|---|
Tax slabs
| Income band | Rate | Taxed | Tax |
|---|
What changed for salaries in 2026-27
From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act, and the financial year is now simply called the tax year. For salaried people the numbers carried over: the new regime keeps slabs of 0% up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% in ₹4 lakh steps, and 30% above ₹24 lakh. The standard deduction stays ₹75,000 in the new regime and ₹50,000 in the old one, and the rebate (now section 156) still wipes out the tax when taxable income is ₹12 lakh or less.
The Income-tax Rules, 2026 brought one change that matters if you rent: 50% HRA exemption now covers eight cities — Mumbai, Delhi, Kolkata and Chennai plus Bengaluru, Hyderabad, Pune and Ahmedabad. In every other city the limit is 40% of basic. HRA only helps in the old regime, so it can tip the choice for people paying high rent in these cities.
How the calculator works
It starts from your CTC and removes the parts you never see each month: the employer’s PF share, gratuity and any employer NPS. What is left is your gross salary. From that it subtracts your own 12% PF, professional tax for your state and income tax, then divides by twelve. Tax is worked out under both regimes, including the rebate, marginal relief just above ₹12 lakh, surcharge for incomes above ₹50 lakh and the 4% cess, and the lower one is shown first.
Professional tax by state
Professional tax is a state tax capped at ₹2,500 a year. Karnataka charges ₹200 a month from ₹25,000 of monthly salary and ₹300 in February; Maharashtra charges ₹200 a month above ₹10,000 and ₹300 in February; Tamil Nadu and Kerala collect it half-yearly. Delhi, Uttar Pradesh, Haryana, Rajasthan, Punjab and Uttarakhand do not levy it. If your payslip shows a different amount, type it under “Rent, deductions and NPS”.
Reading your offer letter
Ask for the salary break-up before you accept. Check whether the variable pay or joining bonus is included in CTC (it usually is, but is not paid monthly), whether PF is on the ₹15,000 cap or on full basic, and whether insurance premiums are counted. Two offers with the same CTC can differ by several thousand rupees a month in hand.
Questions
How much tax is there on a ₹12 lakh salary in 2026-27?
Under the new regime a salaried person earning ₹12.75 lakh a year pays no income tax: the ₹75,000 standard deduction brings taxable income to ₹12 lakh, and the rebate covers the tax up to that level. Above that, marginal relief applies until about ₹12.7 lakh of taxable income.
Which regime should I choose?
The new regime is the default and has lower rates, but almost no deductions. The old regime can still win if you pay high rent in a big city, use the full ₹1.5 lakh under 80C and claim home-loan interest. Enter your numbers and the calculator shows which is lower for you.
Why is my in-hand salary so much lower than my CTC?
CTC includes money you do not receive each month: the employer’s PF share, gratuity and sometimes insurance or a variable bonus. Your own 12% PF, professional tax and income tax are then deducted from the gross salary.
Which cities get 50% HRA exemption now?
From 1 April 2026, the Income-tax Rules 2026 allow 50% of basic salary for Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Other cities use 40%. HRA exemption applies only in the old regime.
Is PF calculated on full basic or ₹15,000?
Employers must contribute on basic up to ₹15,000 a month (₹1,800 a month each). Many companies contribute on the full basic instead — check your offer letter and choose the matching option.
Tax tables checked on 9 November 2026 against the sources below. This is an estimate for planning, not tax advice — your employer’s payroll and your return decide the final figure.