In-Hand Salary Calculator India FY 2026-27: Take-Home Pay After Tax & PF
Your CTC (Cost to Company) is just a number on your offer letter — what you actually receive every month is your in-hand or take-home salary. For FY 2026-27, with the new income tax regime now being default for most salaried employees and updated PF rules, understanding exactly how your CTC breaks down into take-home pay is critical for financial planning.
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CTC (Cost to Company) includes everything the employer spends on you: gross salary + employer PF (12% of basic) + employer ESI (3.25% if applicable) + gratuity component + any other benefits. Gross Salary is what you earn before deductions but excluding employer contributions. In-Hand (Take-Home) is gross salary minus employee PF (12% of basic), employee ESI (0.75%), professional tax (state-dependent, typically ₹200/month), and income tax (TDS).
PF Deduction Rules FY 2026-27
Employee PF contribution: 12% of basic salary. Employer PF contribution: 12% of basic (8.33% goes to EPS — Employee Pension Scheme, 3.67% to EPF). Both employee and employer contribute 12% each, but only the employee share reduces your take-home. PF is deducted only if basic salary is ≤ ₹15,000/month (mandatory) or if the company voluntarily extends it to higher salary employees. Interest earned on EPF is 8.25% p.a. (2024-25 rate).
Income Tax Under New Regime FY 2026-27
The new tax regime slabs remain unchanged from FY 2025-26: ₹0-4L (0%), ₹4-8L (5%), ₹8-12L (10%), ₹12-16L (15%), ₹16-20L (20%), ₹20-24L (25%), above ₹24L (30%). Standard deduction is ₹75,000 for salaried. Section 87A rebate makes tax zero for income up to ₹12L. Marginal relief applies between ₹12L–₹12.75L so tax never exceeds income above ₹12L.
Income Tax Under Old Regime FY 2026-27
Old regime slabs: ₹0-2.5L (0%), ₹2.5-5L (5%), ₹5-10L (20%), above ₹10L (30%). Standard deduction ₹50,000. Available deductions: 80C (₹1.5L — PF, ELSS, PPF, LIC), 80D (health insurance), HRA exemption, Section 24b (home loan interest up to ₹2L), 80CCD(1B) NPS (₹50K). 87A rebate up to ₹5L taxable income.
HRA Exemption Calculation
HRA exemption (only in old regime) = minimum of: (1) Actual HRA received, (2) Actual rent paid minus 10% of basic salary, (3) 50% of basic (metro cities: Mumbai, Delhi, Kolkata, Chennai) or 40% of basic (non-metro). If you live in employer accommodation or own your house, HRA is fully taxable. HRA is not available under new regime.
Professional Tax & ESI
Professional tax varies by state: Maharashtra ₹200/month (₹2,400/yr), Karnataka ₹200/month, West Bengal up to ₹208/month, Tamil Nadu ₹208/month. Some states (Delhi, Haryana, UP, Rajasthan) have no professional tax. ESI (Employee State Insurance) applies only if gross salary ≤ ₹21,000/month: employee contribution 0.75%, employer 3.25%. ESI provides health insurance benefits.
How to Use the Formly In-Hand Salary Calculator
Enter your annual CTC or gross salary. Set your basic salary percentage (typically 40-50% of CTC). Add HRA, special allowance, and other components. Choose new or old tax regime. If old regime, enter your deductions and rent paid. The calculator instantly shows your monthly take-home, all deductions itemized, and a comparison between regimes.
Frequently Asked Questions
What percentage of CTC is in-hand salary?⌄
Typically 65-75% of CTC is your in-hand salary. The rest goes to employer PF contribution, gratuity provision, taxes, and employee PF/ESI deductions. Higher CTC employees (above ₹15L) may see a higher take-home percentage since PF deductions are capped relative to salary.
Is new regime better for FY 2026-27?⌄
For most salaried employees without a home loan, the new regime is better in FY 2026-27. If your total deductions (HRA + 80C + home loan interest + NPS) exceed ₹3.75L, the old regime may save more tax. Use the calculator to compare both.
How is monthly salary calculated from annual CTC?⌄
Monthly in-hand ≠ CTC ÷ 12. CTC ÷ 12 gives monthly CTC which includes employer PF and other costs. Your monthly gross salary is lower, and monthly take-home is further reduced by employee deductions and TDS (tax / 12).
Does PF get deducted if salary is above ₹15,000?⌄
PF is mandatory only for employees with basic salary ≤ ₹15,000/month. For higher salaries, it depends on company policy. Many companies cap PF deduction at 12% of ₹15,000 = ₹1,800/month, while others deduct on actual basic.
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