Gross vs Net Salary Calculator

Find your exact take-home pay in India. Calculates income tax under New & Old Regime, EPF, Professional Tax, and all deductions for FY 2026–27.

New RegimeDefault FY 2026-27
₹12.75LTax-Free Limit
EPF 12%Employee Contribution
₹2,400Max Prof. Tax/Year

Gross vs Net Salary Calculator

Enter your CTC or gross salary to get your complete take-home breakdown

Tax Regime
🆕 New Regime (Default)
📋 Old Regime
Salary Input Type
CTC (Annual)
Gross Salary (Monthly)
Annual CTC (₹)

Enter your total Cost to Company per year
Allowances & Benefits
Basic Salary (% of Gross)
40% (Common in IT/Private)50% (Standard)60% (PSU / Govt style)
HRA (% of Basic)
50% – Metro City40% – Non-Metro0% – No HRA / Company Accommodation
Monthly Rent Paid (₹) (Old Regime only)

Used to calculate HRA exemption
Special Allowance (₹/month)

LTA, Food, Internet, etc. (if separate)
Deductions & Contributions
EPF Contribution
12% of Basic (Standard)Not Applicable / Opted Out
Professional Tax (₹/month)
₹200/month (Most States)₹208/month (Karnataka)₹0 – Not Applicable
Section 80C Investment (₹/year) (Old Regime)

Max ₹1,50,000 (PF + ELSS + LIC etc.)
Section 80D – Health Insurance (₹/year) (Old Regime)

Self: ₹25,000 | With Parents 60+: ₹75,000

⚡ Calculate My Take-Home Salary

📊 Salary Breakdown
Monthly
Annual

💼 EARNINGSMonthly
Basic Salary—
House Rent Allowance (HRA)—
Special / Other Allowance—
Employer EPF Contribution—
💰 Gross Salary—

✂️ DEDUCTIONS
Employee EPF (12% of Basic)—
Professional Tax—
Income Tax (TDS)—
🏠 Net Take-Home Salary—

—Effective Tax Rate
—Take-Home % of Gross
—Annual Take-Home

📊 Salary Composition
Basic Salary—
HRA—
Other Allowances—
Total Deductions (EPF + Tax + PT)—
Net Take-Home—

Gross vs Net Salary – Explained

Everything you need to know about your salary structure in India for FY 2026–27

⚖️What is Gross vs Net Salary?

GROSS

Gross Salary

Your total salary before any deductions. Includes Basic Pay + HRA + DA + Special Allowances + Bonuses. This is what your employer pays towards you.

NET

Net / Take-Home Salary

The amount actually credited to your bank account after deducting EPF, Professional Tax, and Income Tax (TDS) from your gross salary.

CTC

Cost to Company (CTC)

The total cost your employer bears for you — including gross salary + employer EPF + gratuity + medical insurance + other benefits. CTC is always higher than gross.

🧮How Gross Salary is Calculated from CTC

1

Start with CTC – Your annual package as offered by the employer (e.g. ₹8,00,000/year).

2

Subtract Employer EPF – Employer contributes 12% of basic to EPF. This is part of CTC but never reaches your account.

3

Subtract Gratuity – 4.81% of basic/year is set aside by employer. Paid after 5 years of service.

4

Result = Gross Salary – What appears on your payslip before deductions.

5

Subtract Employee EPF, Professional Tax & TDS – These are cut from gross each month.

6

Result = Net / Take-Home Salary – The amount credited to your bank every month.

📋Income Tax Slabs FY 2026–27 (New Regime – Default)

Rebate u/s 87A: Under the New Regime, total tax is NIL if net taxable income ≤ ₹12,00,000. With Standard Deduction of ₹75,000, effective tax-free limit is ₹12,75,000. Surcharge applies on income above ₹50L.

📜Income Tax Slabs FY 2026–27 (Old Regime)

Old Regime Benefit: Allows deductions like 80C (₹1.5L), 80D (₹25K–75K), HRA exemption, LTA, NPS (80CCD(1B) ₹50K extra), Home Loan interest (₹2L) etc. Beneficial for high-investment individuals.

✂️Common Salary Deductions in India

🏠HRA Exemption – Old Regime (FY 2026–27)

HRA exemption is the minimum of these three values:

Rule 1

Actual HRA Received

The HRA component actually received from employer per year.

Rule 2

Rent Paid – 10% of Basic

Actual annual rent paid minus 10% of annual basic salary.

Rule 3

50% / 40% of Basic

50% of annual basic for Metro cities (Delhi, Mumbai, Chennai, Kolkata). 40% for all other cities.

Note: HRA exemption is not available under the New Tax Regime. If you pay high rent, the Old Regime may be more beneficial. Always compare both regimes before choosing.

⚔️New Regime vs Old Regime – Which is Better?

📘 How to Use the Gross vs Net Salary Calculator

Start by choosing the tax regime and salary input type. If you know your annual CTC, keep CTC selected. If your payslip gives monthly gross salary more clearly, switch to the Gross Salary option. The calculator uses different paths for these two inputs, so choosing the correct starting figure matters.

Next, set the Basic Salary percentage and HRA percentage. These settings define how the calculator splits gross pay into Basic, HRA and the balancing allowance. If your employer uses a different structure, choose the closest percentage and compare the output with your payslip rather than assuming every employer follows the same salary template.

Then enter rent, special allowance, EPF option, Professional Tax and old-regime deductions if relevant. The result shows monthly and annual views, effective tax rate, take-home percentage and a visual salary composition.

If you need a more detailed pay-component view before using this tool, open the Salary Breakup Calculator. For a pure concept guide, use the Gross vs Net Salary page.

💼 CTC vs Gross Salary vs Net Salary

CTC is the employer’s total annual cost. It can include monthly gross salary plus employer-side EPF, gratuity and other benefits that never reach the employee’s bank account each month. That is why dividing CTC by 12 rarely gives the true monthly take-home.

Gross salary is the monthly earnings amount before employee-side deductions such as EPF, Professional Tax and TDS. Net salary is the amount left after those deductions are removed.

The calculator’s CTC mode backs out employer EPF and gratuity using the assumptions built into the page before estimating monthly gross. Gross-input mode skips that conversion and starts directly from the monthly figure entered.

When checking an offer letter, compare CTC and gross separately. When checking a bank credit, compare gross and net separately. Mixing these three terms is one of the most common reasons salary expectations do not match actual take-home.

🧮 How the Calculator Splits Basic, HRA and Other Allowance

The calculator first derives monthly gross and then applies the selected Basic percentage. HRA is calculated as a percentage of gross according to the page logic, while the remaining balance becomes the “Other Allowance” amount after special allowance adjustments.

This is a simplified salary-structure model, not a universal payroll format. Some employers define HRA from Basic rather than from gross, or may use separate flexible-benefit components. Use the calculator as an estimate and reconcile each line with the actual payslip.

For Government-style salary structures, the Pay Matrix Calculator and DA Calculator are more appropriate because Government pay uses Basic Pay, DA, HRA and TA rather than a private-sector CTC split.

For private-sector comparisons, keep the Basic percentage constant when comparing two CTC offers. This isolates the impact of higher package size instead of mixing a pay-structure change with a salary increase.

🏠 HRA and Old-Regime Exemption

The page calculates HRA exemption only when the Old Regime is selected, rent is entered and HRA is greater than zero. It compares actual HRA, rent minus 10% of Basic and the metro/non-metro Basic percentage, then uses the lowest value.

Use the HRA Tax Exemption Calculator when HRA is the main question. The dedicated tool is better for studying exemption rules independently from EPF, Professional Tax and total salary.

Under the New Regime path on this page, HRA exemption is not applied. This is why switching regimes can change TDS even when gross salary is unchanged.

When comparing regimes, keep salary, rent and investment inputs fixed. Changing several assumptions at once makes it difficult to identify whether the tax difference came from HRA, 80C, 80D or the slab structure.

🏦 EPF and Employer Contribution

Employee EPF is deducted from gross salary and therefore directly reduces take-home. Employer EPF is shown as an employer-side CTC component and should not be treated as monthly cash income.

The page allows EPF to be switched off for scenarios where it is not applicable. If EPF is active, both employee and employer contributions are based on the Basic Salary figure generated by the calculator.

When reviewing an offer letter, check whether employer EPF is included inside CTC or paid over and above the stated package. The calculator assumes it is part of CTC in CTC mode.

For retirement-system comparisons involving Government employees, use the NPS vs Old Pension guide instead. EPF and NPS serve similar long-term purposes but follow different rules and should not be treated as interchangeable deductions.

✂️ Professional Tax, TDS and Other Deductions

Professional Tax is selected as a monthly amount because applicability and rates vary by state. Choosing zero is appropriate when the state does not levy it or when it does not apply to the employee.

TDS is calculated from estimated annual taxable income under the selected regime and then spread over 12 months. Actual employer TDS can differ because of bonus, perquisites, prior-employer income, declarations and year-end adjustments.

The calculator’s net salary excludes loan EMIs and voluntary deductions. If your actual bank credit is lower than the calculator result, compare insurance, salary advance, food-card recovery, loan deductions or other payroll items separately.

For a clean reconciliation, match gross salary first, then EPF and Professional Tax, and review TDS last. This sequence makes it easier to identify where the difference starts.

⚔️ Comparing New and Old Tax Regimes

The New Regime and Old Regime buttons change the tax path used by the calculator. The Old Regime path considers 80C, 80D and HRA exemption inputs, while the New Regime path ignores those deductions in the page logic.

A useful comparison method is to calculate the same salary twice without changing anything except the regime. Save the New Regime result, switch to Old Regime, keep salary and rent the same, and then enter the deductions you actually claim.

Compare annual tax, monthly TDS and final annual take-home rather than looking only at the slab table. The better regime depends on the full combination of income and deductions represented by the calculator.

Do not choose a regime only because one headline slab looks lower. The tax base can differ significantly after deductions and exemptions.

📊 Monthly vs Annual Result Tabs

The Monthly tab is best for payslip reconciliation because it shows the amounts you expect to see each month. The Annual tab is better for offer comparison, tax planning and budgeting across the full financial year.

Both tabs are generated from the same underlying calculation. Switching tabs should not change the effective tax rate or take-home percentage; it only changes the presentation period.

The rate pills summarize effective tax rate, take-home percentage and annual net income. These are useful when comparing two offers with different CTC structures because they provide a normalized view rather than only rupee totals.

The visual bars show how much of monthly gross is represented by Basic, HRA, other allowance, deductions and net take-home. Use them as a composition check, not as a replacement for the numerical result rows.

🧾 Offer Letter and Payslip Reconciliation Workflow

For an offer letter, start with annual CTC and the proposed Basic percentage. Calculate the expected gross and net, then compare employer EPF and gratuity assumptions with the actual compensation sheet.

For a payslip, use monthly gross mode. Enter the current monthly gross and adjust Basic and HRA percentages until the salary structure broadly matches the payslip, then compare EPF, Professional Tax and TDS.

If the employer uses a separate bonus, variable pay or retention component, keep it outside the monthly gross unless it is actually paid every month. Annual CTC often includes benefits that should not be treated as regular monthly salary.

Save one calculation for the offer and another for the first actual payslip. The difference between them reveals which assumptions changed after joining.

📈 Salary Hike Comparison

To compare a salary hike, first calculate the old salary and save the annual net figure. Then change only the CTC or monthly gross value while keeping Basic percentage, HRA, EPF and tax regime unchanged.

This isolates the value of the salary increase itself. If you change the tax regime or salary structure at the same time, the change in take-home will reflect multiple factors and may be hard to interpret.

A higher CTC does not increase take-home rupee-for-rupee because employer contributions, EPF and income tax can rise with salary. This is why percentage hike and percentage net-pay increase are often different.

For future Government pay scenarios, use the 8th CPC Salary Calculator instead of this CTC model because Government salary is not normally structured around private-sector CTC conventions.

⚠️ Common Gross vs Net Salary Calculator Mistakes

A common mistake is entering annual gross while CTC mode is selected. CTC mode assumes employer EPF and gratuity are included, so entering the wrong type can understate monthly gross.

Another mistake is treating employer EPF as spendable income. It is part of the employer’s cost but does not arrive in the monthly bank credit.

Users may also select a generic Professional Tax even when their state does not levy it, or enter old-regime deductions while the New Regime is active and expect them to reduce tax.

Finally, the calculator is an estimate. Bonuses, perquisites, surcharge, cess, other income and employer-specific payroll rules can change final TDS and take-home.

✅ Gross vs Net Salary Verification Checklist

Before accepting the result, confirm tax regime, input type, annual CTC or monthly gross, Basic percentage, HRA percentage, rent, special allowance, EPF option, Professional Tax and old-regime deductions.

Then review monthly Basic, HRA, other allowance, employer EPF, gross salary, employee EPF, Professional Tax, TDS and net take-home in order.

If the result differs from the payslip, identify the first mismatched component rather than adjusting the final net figure manually.

Keep a dated copy of the assumptions used. Salary structures and tax choices can change between jobs or financial years, so the inputs are as important as the final result.

📌 Record-Keeping Tip

Keep one saved calculation for each job offer, major salary revision or tax-regime choice. Record whether the input was annual CTC or monthly gross, because the calculator treats those modes differently.

When your first payslip arrives, compare it with the saved estimate line by line. If Basic, HRA, EPF or Professional Tax differs from the assumptions used in the offer calculation, update only that component and recalculate before judging the overall take-home difference.

For year-end tax review, keep the annual result together with Form 16 or the employer’s tax statement. This makes it easier to understand whether changes in TDS came from salary growth, regime choice, declared deductions or one-time bonus income.

A short note of salary period, tax regime and deduction assumptions is enough to make later comparisons reliable, especially when CTC changes during appraisal, promotion or job switching.

This also helps when bonus, variable pay or revised TDS changes the actual monthly credit.

Frequently Asked Questions

Common questions about gross salary, net salary and tax in India

What is the difference between CTC, Gross, and Net Salary?▾
CTC (Cost to Company) is the total expenditure a company makes on an employee, including employer EPF and gratuity. Gross Salary is what shows on your payslip before deductions — it excludes employer-side contributions. Net Salary is what you actually receive in hand after EPF, Professional Tax, and TDS are deducted from gross.
Is salary up to ₹12.75 lakh really tax-free in FY 2026–27?▾
Yes, effectively. Under the New Tax Regime, the standard deduction of ₹75,000 reduces taxable income. If your net taxable income is ₹12,00,000 or below, Section 87A rebate makes your tax liability zero. So for a salaried person with gross income up to ₹12,75,000, the effective tax payable is ₹0 in FY 2026–27.
How is EPF calculated and does it reduce take-home pay?▾
Yes, EPF directly reduces take-home. The employee contributes 12% of basic salary every month to the EPF account. The employer also contributes 12%, but that is part of your CTC — not from your gross. EPF deduction qualifies for 80C benefit under the Old Regime. The EPF balance earns interest (currently 8.25%) and is tax-free on withdrawal after 5 years.
Which states have Professional Tax in India?▾
Professional Tax is levied by state governments and is not applicable across all states. States that currently levy it include Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat, and Madhya Pradesh. The maximum amount allowed by law is ₹2,500 per year. States like Delhi, Rajasthan, Haryana, and UP do not charge Professional Tax.
Should I choose the New or Old Tax Regime in FY 2026–27?▾
The New Regime is generally better for those with income up to ₹12.75L (zero tax) or those with minimal deductions. The Old Regime is beneficial if you pay high rent (HRA exemption), have home loan interest, invest heavily in 80C (₹1.5L), NPS (₹50K extra), and health insurance. As a thumb rule: if your total deductions exceed ₹3.75L, the Old Regime may save more tax.
What is Special Allowance and is it taxable?▾
Special Allowance (also called Flexi Pay, Other Allowance, or Balancing Allowance) is the residual component of gross salary after Basic, HRA, and specific allowances. It is fully taxable under both the New and Old regime. Employers sometimes structure it to include partially exempt components like LTA (Leave Travel Allowance), which is exempt twice in a 4-year block under the Old Regime.
How is monthly TDS calculated on salary?▾
Your employer estimates your annual taxable income at the start of the financial year, calculates the total tax liability under the chosen regime, and divides it equally across 12 months. This monthly deduction is called TDS (Tax Deducted at Source). You must submit your regime choice and investment declarations to your employer (typically via Form 12BB) to ensure correct TDS deduction.
Is bonus included in gross salary for tax calculation?▾
Yes. Performance bonuses, annual bonuses, and incentive payouts are fully taxable as part of salary income under both regimes. When your employer pays a bonus, TDS for that month is higher to account for the additional income. Festival advance (interest-free) is not taxable, but festival bonus is taxable.

📌 Disclaimer: This calculator provides estimates for FY 2026–27 based on standard assumptions. Actual tax liability may vary based on additional deductions, surcharge, cess, perquisites, and other income. Always consult a Chartered Accountant or the official Income Tax India portal for precise tax planning.