EPF Interest Tax Calculator
what the ₹2.5 lakh rule costs you by retirement.
Frequently asked questions
Is EPF interest tax-free?+
Interest on your own EPF and VPF contributions is tax-free on the first ₹2.5 lakh of contributions in a financial year (₹5 lakh where there is no employer contribution, as in GPF). This has applied since FY2021-22. Interest on the amount above the line is taxed every year at your slab rate.
What counts toward the ₹2.5 lakh line?+
Only your own EPF and VPF contributions. Your employer's share is tested separately: employer contributions to EPF, NPS and superannuation combined are tax-free up to ₹7.5 lakh a year, and the excess is taxed as a perquisite. The rule applies to EPF, VPF and recognised or statutory provident funds, not to PPF or NPS.
How is the tax collected?+
EPFO withholds 10% TDS from the taxable interest (20% without a valid PAN) before crediting it. If your slab is higher, you pay the difference yourself when you file your return. Nothing more is taken from your EPF account.
Why does the calculator say I never cross the line?+
On the ceiling basis, your PF is 12% of the statutory wage ceiling, ₹25,000 a month since 17 September 2026. That is about ₹36,000 a year, well under ₹2.5 lakh, so only VPF can take you past the line. If your employer contributes on your actual, higher wages, which needs a joint request from you and your employer, choose Full Basic. Not crossing only means no new money enters the taxable part of your PF; interest on a taxable balance you already hold is still taxed every year.
I already have a taxable balance. Does stopping VPF end the tax?+
No. Stopping VPF stops new money entering the taxable part of your PF. Interest on the balance already there keeps being taxed every year. Enter it under Advanced to see the cost.
What does the cost figure include?+
It is what the taxed part of your PF is short at retirement compared with a tax-free account. It adds the gap in your EPF passbook to the tax you pay yourself, grown at the EPF rate, because that money could have kept compounding inside EPF.
I earn ₹12 lakh or less. Does this affect me?+
Under the new regime, if your taxable income is ₹12 lakh or less, the tax rebate makes your tax nil, so tax on the EPF interest is nil too. Pick the 0% slab. TDS withheld during the year comes back as a refund when you file. Just above ₹12 lakh the rebate tapers off, which this calculator does not model.
What is the after-tax yield on the excess?+
It is the rate your taxable contributions effectively earn after tax: the EPF rate × (1 − slab × 1.04, which includes 4% cess). At 8.25% interest that is about 6.5% at a 20% slab and 5.7% at 30%.
I'm a government employee on GPF. Can I use this?+
This calculator models EPF. GPF has a higher ₹5 lakh line and its own interest rate, set by the government, so the numbers here will not match.
How accurate is this?+
It is an estimate. It assumes a flat tax slab, no surcharge, a constant EPF rate, yearly salary steps and a fixed VPF amount each month. 'How this is calculated' lists every assumption. It is for information only, not tax advice.
TinyThink — for informational purposes only. Not financial or tax advice. Uses FY 2025-26 EPF rate and FY 2026-27 new-regime slabs; verify with EPFO and the Income Tax Department.