Retirement Planning · Pensions & Benefits
EPF & NPS Withdrawal Tax Calculator
Estimate the income tax on withdrawing your EPF balance (tax-free after 5 years of service, taxable before) or on exiting NPS (up to 60 % tax-free, the rest of the lump sum and the annuity taxed), under the FY 2026-27 new tax regime — including TDS.
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Your inputs
Quick start — try a typical case
₹ 15 lakh
Salary, pension, interest, rent… (gross, before the standard deduction).
Across employers if you transferred your PF. 5+ years makes the withdrawal tax-free.
₹ 2.5 lakh
₹ 1.8 lakh
₹ 30 thousand
₹ 22 thousand
Your result Live
Estimated Extra Tax
₹39,156
On ₹2,32,000 of the ₹4,82,000 withdrawn — service under 5 years
- Taxable Part
- ₹2,32,000 — employer's share and all interest
- Tax-free Part
- ₹2,50,000
- TDS Deducted by EPFO
- ₹48,200 (10 % with PAN, as the withdrawal is above ₹50,000) — adjusted against your final tax
- You Receive After TDS
- ₹4,33,800
- Your Tax Without the Withdrawal
- ₹97,500
- Tax-free · 52%₹2,50,000
- Taxable · 48%₹2,32,000
Strictly, the taxable amounts are taxed in the years they were earned (earlier returns are recomputed). This estimate adds them to this year's income, which is close when your income hasn't changed much.
Withdrawals forced by ill health, the employer closing down or other reasons beyond your control are exempt even before 5 years.
Without a PAN, TDS is deducted at a much higher rate. Form 15G/15H can avoid TDS if your total income is below the taxable limit.
How this is calculated
Extra tax = Tax(other income + taxable withdrawal) − Tax(other income), new regime with 87A rebate and 4 % cess
- EPF taxable (under 5 years)
- Employer's contributions + interest on both shares (+ your contributions if you claimed 80C)
- NPS taxable
- Lump sum above 60 % of the corpus + annuity income
EPF is tax-free if you withdraw after 5 years of continuous service (including service transferred across jobs). Withdraw earlier and the employer's share and the interest become taxable, with 10 % TDS on withdrawals above ₹50,000. At NPS exit, up to 60 % of the corpus can be withdrawn tax-free; the annuity you buy pays a pension that is taxed every year at your slab rate.
Assumptions & sources
- New tax regime, FY 2026-27 (AY 2027-28): slabs 0 / 5 / 10 / 15 / 20 / 25 / 30 % with breaks at ₹4, 8, 12, 16, 20 and 24 lakh; rebate making tax nil up to ₹12 lakh (with marginal relief); ₹75,000 standard deduction; 4 % cess (checked 2026-10-11).
- Old tax regime, surcharge and special-rate income aren't modelled.
- EPF taxable components are added to this year's income as an approximation of the re-computation of earlier years.
- 1Income-tax slabs under the new tax regime (Section 115BAC; Section 202 of the Income-tax Act, 2025), rebate and standard deduction — Income Tax Department. Unchanged by Budget 2026.
- 2Tax benefits under NPS — PFRDA
- 3Taxability of EPF withdrawals and TDS under section 192A — EPFO
Calculator ID TAX-RETWD-001 · version 1.0.0
Common questions
Is EPF withdrawal taxable?
Not after 5 years of continuous service. Before that, the employer's contribution and the interest are taxable, and EPFO deducts 10 % TDS if the withdrawal is more than ₹50,000 and you've given your PAN.
How much of my NPS is tax-free?
Up to 60 % of the corpus taken as a lump sum is tax-free. Annuity income is taxed at your slab rate every year. If you withdraw more than 60 % under the new exit rules, the excess is treated as taxable here.
Does the ₹12 lakh rebate help?
Yes — under the new regime, if your total taxable income including the withdrawal stays within ₹12 lakh, the rebate makes your tax nil.