India salary calculator 2026–27 — Use this free, verified India Salary Calculator to discover your estimated net take-home pay after new-regime income tax slabs, the rebate of up to ₹60,000, surcharge where applicable, and 4% Health and Education Cess. All calculations reflect official Income Tax Department, India rules for FY 2026–27.
India Salary Calculator 2026–27 — Estimated Take-Home Pay After Tax
This India Salary Calculator delivers an estimated gross-to-net payroll breakdown for salaried employees in India. Unlike simplified salary tools, our India Salary Calculator models the standard deduction, progressive new-regime slabs, the rebate and marginal relief, surcharge, and cess, showing your true estimated disposable income in Indian Rupees (₹).
🇮🇳 India Salary Calculator (2026–27)
EPF is never calculated here as 12% of your full gross salary. It is 12% of PF wages, so enter the amount from your payslip. Professional tax is state-dependent, so enter the amount from your payslip too.
| Payment Frequency | Gross Pay | Income Tax | Net Take-Home |
|---|---|---|---|
| Annual Total | ₹20,00,000 | ₹1,92,400 | ₹18,07,600 |
| Monthly Avg (÷12) | ₹1,66,667 | ₹16,033 | ₹1,50,633 |
| Bi-Weekly (÷26) | ₹76,923 | ₹7,400 | ₹69,523 |
| Weekly (÷52) | ₹38,462 | ₹3,700 | ₹34,762 |
| Hourly (40h) | ₹961.54 | ₹92.50 | ₹869.04 |
Calculated using FY 2026–27 new-regime slabs, ₹75,000 standard deduction, rebate, surcharge and 4% cess. Estimate only — not tax advice.
How the India Salary Calculator Works in 2026–27
When calculating payroll in our India Salary Calculator, your final take-home pay is determined by four layers: the standard deduction, progressive income tax slabs, the rebate with marginal relief, and surcharge plus cess. EPF and professional tax are shown separately, because they are not income tax.
1. Standard Deduction
First, the India Salary Calculator applies the standard deduction. For a salaried employee under the new regime, that is ₹75,000.
- Taxable income: annual gross salary minus ₹75,000. For example, ₹20,00,000 gross gives ₹19,25,000 taxable income.
- Old regime: standard deduction ₹50,000, used only in the old-regime comparison in this India Salary Calculator.
2. Progressive New-Regime Slabs (2026–27)
Each rate applies only to the slice of income inside that band. Crossing into a higher band does not tax your whole income at the higher rate.
| Taxable Income (₹) | Rate on That Band | Maximum Tax in That Band (₹) |
|---|---|---|
| Up to 4,00,000 | Nil | 0 |
| 4,00,001 – 8,00,000 | 5% | 20,000 |
| 8,00,001 – 12,00,000 | 10% | 40,000 |
| 12,00,001 – 16,00,000 | 15% | 60,000 |
| 16,00,001 – 20,00,000 | 20% | 80,000 |
| 20,00,001 – 24,00,000 | 25% | 1,00,000 |
| Above 24,00,000 | 30% | No fixed maximum |
At exactly ₹12,00,000 of taxable income, slab tax is ₹60,000. That is ₹20,000 at 5% plus ₹40,000 at 10%.
That ₹60,000 figure matters, because it is exactly the maximum rebate. See the next section.
3. Rebate and Marginal Relief
For an eligible resident individual under the new regime, the rebate is up to ₹60,000 where taxable income is ₹12,00,000 or less.
- Rebate, not deduction: it cancels tax already calculated, up to ₹60,000.
- Who it excludes: non-residents, HUFs, firms and companies, and tax on income charged at special rates, such as certain capital gains.
- Marginal relief: just above the limit, tax before cess is capped at the excess over ₹12,00,000. For example, gross salary ₹13,00,000 gives taxable income ₹12,25,000 and slab tax ₹63,750, capped to ₹25,000, plus 4% cess = ₹26,000 total, not ₹66,300.
The India Salary Calculator implements that cap. A calculator that simply removes the whole rebate at ₹12,00,001 would overstate tax just above the threshold.
4. Surcharge and Cess
| Total Income (₹) | New-Regime Surcharge |
|---|---|
| Up to 50,00,000 | Nil |
| Above 50,00,000 – 1,00,00,000 | 10% of tax |
| Above 1,00,00,000 – 2,00,00,000 | 15% of tax |
| Above 2,00,00,000 | 25% of tax (capped at 25% under the new regime) |
The threshold is tested on total income, not on gross salary before the standard deduction. That matters: a ₹50 lakh gross salary has taxable income of ₹49,25,000, so it has no surcharge in Worked Example 3 below.
Marginal relief also applies at each surcharge threshold, so tax plus surcharge just above a threshold cannot jump by more than the excess income over that threshold.
Finally, the India Salary Calculator adds Health and Education Cess at 4% on tax plus any surcharge. Cess is charged on the tax, not on your salary. If tax after rebate is ₹0, cess is ₹0. If tax after rebate is ₹1,85,000 with no surcharge, cess is ₹7,400.
India Salary Calculator: What Income Tax Is Not
These three are often confused with income tax. They are separate deductions, and they do not reduce your income-tax slabs.
Employee Provident Fund (EPF)
Employee EPF is 12% of PF wages. PF wages mean basic pay plus dearness allowance, as defined for PF purposes. It is not 12% of your full gross salary, and it is not 12% of CTC. Because PF wages depend on your salary structure, this page does not assume a PF-wage figure for you. Enter your actual employee EPF from your payslip into the India Salary Calculator. No EPFO ceiling is hard-coded in this calculator.
Employees' State Insurance (ESI)
ESI employee contribution is 0.75% of gross wages, and the employer pays 3.25%. It applies only where monthly wages are within the ESI wage limit of ₹21,000 per month. For the salary levels in the tables below, ESI is therefore ₹0.
Professional Tax
Professional tax is levied by state governments, varies by state, and is capped at ₹2,500 per person per year. Some states levy no employee professional tax at all. No state-by-state table is included here, because one has not been verified against state notifications. Under the new regime, professional tax paid does not reduce taxable salary. Under the old regime it is generally deductible from salary income. Either way, at most ₹2,500 per year, it will never be the main driver of your tax bill.
What “Gross Salary” Means on This Page
On this page, gross salary means your annual salary income before income tax is deducted. It is not the same as CTC (cost to company). CTC usually also includes the employer's provident fund contribution, gratuity provision, and insurance. Those employer amounts are not your pay, and they are not deducted from your salary as income tax. If your offer letter says CTC, do not enter the CTC figure as gross salary. Your estimated net will be wrong. Enter the gross salary from your salary breakup or payslip instead.
For other countries, see our salary calculators, including the Germany salary calculator, the UK salary calculator, and the US salary calculator.
India Salary Calculator Worked Examples — New Regime, Income Tax Only
All three India Salary Calculator examples use the same basis, so they can be compared directly. They are for a resident salaried individual, below 60 years of age, under the new regime, with no income other than salary. Net in these examples means gross salary minus income tax only. EPF, professional tax and ESI are not deducted here.
India Salary Calculator — Worked Example 1: ₹12,00,000 Gross Salary
| Step | Amount (₹) |
|---|---|
| Annual gross salary | 12,00,000 |
| Less: standard deduction | (75,000) |
| Taxable income | 11,25,000 |
| Slab tax (4–8 lakh at 5%, 8–11.25 lakh at 10%) | 52,500 |
| Less: rebate (taxable income ≤ ₹12 lakh) | (52,500) |
| Surcharge / cess | 0 |
| Total estimated income tax | 0 |
| Estimated net after income tax | 12,00,000 per year / 1,00,000 per month |
At ₹12 lakh gross, the rebate absorbs the entire slab tax. The same logic holds up to ₹12,75,000 gross, where slab tax of ₹60,000 equals the maximum rebate.
India Salary Calculator — Worked Example 2: ₹20,00,000 Gross Salary
| Step | Amount (₹) |
|---|---|
| Annual gross salary | 20,00,000 |
| Less: standard deduction | (75,000) |
| Taxable income | 19,25,000 |
| Slab tax (up to ₹12 lakh: 60,000; 12–16 lakh at 15%: 60,000; 16–19.25 lakh at 20%: 65,000) | 1,85,000 |
| Less: rebate | 0 |
| Health and Education Cess at 4% | 7,400 |
| Total estimated income tax | 1,92,400 |
| Estimated net after income tax | 18,07,600 per year / 1,50,633 per month |
| Effective income-tax rate | 9.62% |
The “20% slab” does not mean 20% tax on ₹20 lakh. Only the slice between ₹16 lakh and ₹19.25 lakh is taxed at 20%.
India Salary Calculator — Worked Example 3: ₹50,00,000 Gross Salary
| Step | Amount (₹) |
|---|---|
| Annual gross salary | 50,00,000 |
| Less: standard deduction | (75,000) |
| Taxable income | 49,25,000 |
| Slab tax (up to ₹24 lakh: 3,00,000; 24–49.25 lakh at 30%: 7,57,500) | 10,57,500 |
| Surcharge | 0 (taxable income below the ₹50 lakh threshold) |
| Health and Education Cess at 4% | 42,300 |
| Total estimated income tax | 10,99,800 |
| Estimated net after income tax | 39,00,200 per year / 3,25,017 per month |
| Effective income-tax rate | 22.00% |
Even at ₹50 lakh gross, there is no surcharge here. A ₹51 lakh gross salary would cross the threshold, because its taxable income would be ₹50,25,000.
From Net After Income Tax to In-Hand Pay — Illustrative Only
The examples above deliberately exclude EPF and professional tax, because those amounts depend on your payslip. For the ₹20,00,000 example, assuming employee EPF of ₹36,000 per year and professional tax of ₹2,500 per year, both entered from a payslip, illustrative in-hand pay is ₹17,69,100 per year, or ₹1,47,425 per month. If your EPF or professional tax differs, your in-hand pay differs by exactly that amount. Never compare a “net after tax” figure from one site with an “in-hand after EPF” figure from another site.
India Salary Calculator Income-Level Table
Same basis as the India Salary Calculator worked examples: resident salaried individual, new regime, ₹75,000 standard deduction, no other income or deductions. Net means gross minus income tax only.
| Annual Gross (₹) | Taxable Income (₹) | Estimated Tax (₹) | Net per Year (₹) | Net per Month (₹) | Effective Rate |
|---|---|---|---|---|---|
| 3,00,000 | 2,25,000 | 0 | 3,00,000 | 25,000 | 0% |
| 5,00,000 | 4,25,000 | 0 | 5,00,000 | 41,667 | 0% |
| 7,50,000 | 6,75,000 | 0 | 7,50,000 | 62,500 | 0% |
| 10,00,000 | 9,25,000 | 0 | 10,00,000 | 83,333 | 0% |
| 12,75,000 | 12,00,000 | 0 | 12,75,000 | 1,06,250 | 0% |
| 15,00,000 | 14,25,000 | 97,500 | 14,02,500 | 1,16,875 | 6.50% |
| 20,00,000 | 19,25,000 | 1,92,400 | 18,07,600 | 1,50,633 | 9.62% |
| 25,00,000 | 24,25,000 | 3,19,800 | 21,80,200 | 1,81,683 | 12.79% |
| 30,00,000 | 29,25,000 | 4,75,800 | 25,24,200 | 2,10,350 | 15.86% |
| 50,00,000 | 49,25,000 | 10,99,800 | 39,00,200 | 3,25,017 | 22.00% |
| 75,00,000 | 74,25,000 | 20,67,780 | 54,32,220 | 4,52,685 | 27.57% |
| 1,00,00,000 | 99,25,000 | 29,25,780 | 70,74,220 | 5,89,518 | 29.26% |
Every salary up to ₹12,75,000 shows ₹0 tax on this basis, because the rebate absorbs the slab tax. That does not mean every person earning ₹12,75,000 pays no tax. Other income, special-rate income, or a different deduction position can change the result. The ₹75 lakh and ₹1 crore rows include surcharge at 10%, plus 4% cess, in the tax figures shown.
India Salary Calculator: Old Regime vs New Regime
In this India Salary Calculator, the new regime is the default. The old regime still exists as an option, but it only helps if your eligible deductions are large enough to outweigh its higher slab rates.
| Taxable Income (₹) | Old-Regime Rate |
|---|---|
| Up to 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Old-regime basics: standard deduction ₹50,000, rebate up to ₹12,500 where taxable income is ₹5,00,000 or less, and senior-citizen exemption limits of ₹3,00,000 (ages 60 to below 80) and ₹5,00,000 (ages 80 and above).
Deductions the old regime allows but the new regime generally does not include Section 80C up to ₹1,50,000, Section 80D health insurance premium, HRA exemption, and home-loan interest up to ₹2,00,000 for a self-occupied house.
For a ₹20,00,000 salary with no deductions beyond the standard deduction, the India Salary Calculator gives new-regime tax of ₹1,92,400, while the old regime gives ₹4,13,400. On that basis the new regime saves ₹2,21,000. The old regime would need very large eligible deductions to close that gap.
Do not choose the old regime just because you have some deductions. Compare the final tax figure in both regimes for your actual deduction total.
One calculator note: professional tax is generally deductible under the old regime, but this calculator keeps it as a separate in-hand deduction in both regimes, so the comparison stays like-for-like. The effect is at most ₹2,500 per year.
From 1 April 2026 the Income-tax Act, 2025 applies. The new regime is now in Section 202 of that Act (previously Section 115BAC of the 1961 Act), and the rebate is in Section 156 (previously Section 87A). The rates in this article are unchanged — only the Act and section references have changed.
India Salary Calculator and Average Salary in India
There is no single “average salary in India” that fits every reader of this India Salary Calculator, and this page does not invent one.
The most useful official anchor is the Periodic Labour Force Survey (PLFS) 2025 Annual Report, covering January–December 2025, as summarised in secondary sources. It puts average earnings for regular wage and salaried workers at ₹24,217 per month for men and ₹18,353 per month for women. That covers all regular salaried work across India
It is not a metro IT salary, and it is not a graduate starting salary. Urban professional roles in metro cities are commonly reported well above that all-India average, but those role-level figures vary by city, experience and employer.
If you earn ₹12 lakh per year, you are well above the all-India regular-salaried average quoted above. That does not make ₹12 lakh a “high” salary in Mumbai or Bengaluru, where housing costs are far higher.
That is why this page separates the tax calculation, which is national with fixed slabs, from cost-of-living judgement, which is city-specific. No city rent figures are included here, and none should be added without sourced, dated figures.
The qualitative point stands without invented figures: the same net salary buys materially different housing in Mumbai, Bengaluru, Delhi, Hyderabad, Pune and Chennai versus smaller cities.
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Frequently Asked Questions — India Salary Calculator
Sources
Official source: Income Tax Department, India, including its Brief on Budget for the new-regime slabs and the rebate.
Surcharge and 4% Health and Education Cess, new regime, and old-regime slabs and rebate, were checked against secondary Budget 2026–27 reporting consistent across sources read for the draft.
EPF employee share of 12% of PF wages, ESI employee share of 0.75% with a ₹21,000 monthly wage limit, and the professional-tax cap of ₹2,500 per year were taken from secondary payroll-compliance sources read for the draft.
PLFS 2025 average earnings for regular wage and salaried workers — ₹24,217 per month for men and ₹18,353 per month for women — are as summarised in secondary sources.
At publish time, re-open the Income Tax Department and CBDT pages and confirm the slab, rebate, surcharge and cess figures still match this page.
Use the India Salary Calculator to test different salary levels, compare the new and old regimes, and see how the rebate, surcharge and cess change your net pay — then check the result against your payslip before relying on it. That is what this India Salary Calculator is for: a clear, planning-only estimate, not a promise of exact pay.
All salary, tax and take-home figures on this page are estimates for planning purposes only. They are based on the FY 2026–27 / Tax Year 2026–27 rules and the assumptions stated on this page, and they do not constitute tax, legal or financial advice. Actual tax depends on your complete income, deductions, exemptions, residential status, salary structure, state of employment and applicable notifications. Verify your liability against your Form 16, the Income Tax Department's guidance, or a qualified tax professional before filing or making a financial decision based on these estimates.