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Payroll Tax Calculator

Calculate income tax, TDS, and take-home salary

Last Updated: July 2026
Cost to company (gross salary)
Old or new tax regime
Income tax calculation method
HRA exemption (old regime only)
80C deductions (old regime)
80D, 80E, etc. (old regime)
Gross Annual Salary
—
Before deductions
Taxable Income
—
After deductions
Annual Income Tax
—
Total tax payable
Monthly TDS
—
Tax deducted monthly

Tax Breakdown

ComponentAmount

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What Is a Payroll Tax Calculator?

A Payroll Tax Calculator computes your income tax, monthly TDS, and take-home salary based on CTC and chosen tax regime (old or new). It accounts for standard deduction, exemptions, and cess to give accurate tax liability.

This calculator helps you understand the tax impact on your salary, compare old vs new regime, and plan investments for tax saving. It shows monthly TDS deduction and approximate in-hand salary.

Frequently Asked Questions

What is the difference between old and new tax regime?
Old regime allows deductions (80C, 80D, HRA, etc.) but has higher tax rates. New regime (default from FY 2024-25) has lower rates but no deductions except standard deduction of ₹75,000. Choose based on your investments.
Which tax regime is better?
If your deductions exceed ₹3-4 lakh (80C + HRA + 80D + others), old regime may be better. Otherwise, new regime gives lower tax. Use this calculator to compare both regimes for your specific situation.
What is standard deduction?
Standard deduction is a flat ₹75,000 deduction available in both regimes (FY 2025-26). It is automatically applied without requiring proof. Salaried employees get this deduction from gross salary.
What is tax cess?
Health and Education Cess is 4% on income tax. If your tax is ₹1,00,000, cess is ₹4,000, making total tax ₹1,04,000. Cess is applicable on both old and new regimes.
How is monthly TDS calculated?
Monthly TDS = Annual tax / 12. Employers deduct this from salary every month and deposit with government. If you join mid-year, TDS is calculated on remaining months. Form 16 shows annual TDS summary.

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