Annual Salary Increment Calculator – FY 2025-26
Calculate your real take-home annual salary increase with accurate FY 2025-26 tax slabs. Support for New/Old Tax Regime and RI/NRI. Includes 5-year projection and CTC breakdown.
For Indian Residents (ROR) earning overseas bank interest. NRIs: Your foreign interest is NOT taxable in India — use this calculator to see ₹0 Indian tax result. About Accuracy: This calculator uses FY 2025-26 tax rules including Section 5(1) (global income), Section 91 (Foreign Tax Credit), and New Regime slabs with surcharge and 4% cess. For methodology details, see our Accuracy & Limitations page.
About This Calculator
This salary increment calculator is designed for FY 2025-26 (AY 2026-27) with accurate tax slab calculations. It helps you:
- ✓ Calculate exact salary increment with accurate percentage
- ✓ Compare New vs Old Tax Regime tax impact
- ✓ Calculate tax for Resident Indian (RI) and NRI separately
- ✓ See real take-home increase after taxes
- ✓ Project 5-year salary growth with cumulative tax impact
- ✓ View CTC breakdown (Basic, HRA, DA, Medical, Bonus)
✓ Accurate Tax Calculations
- • New Regime (7-tier slab)
- • Old Regime with standard deductions
- • NRI simplified 3-tier slab
- • Effective tax rate calculation
- • FY 2025-26 compliant slabs
📊 Advanced Features
- • Quick increment buttons (+5%, +10%, etc.)
- • 5-year salary projection table
- • CTC breakdown analysis
- • Comparison of tax regimes
- • Zero data storage (client-side only)
Example: ₹60,00,000 → ₹96,00,000 (60% Hike)
Gross Annual Increment: ₹36,00,000 (+60%)
Monthly Increment: ₹3,00,000
New Regime (RI)
₹10,80,000
30% effective rate
Old Regime (RI)
₹10,80,000
30% effective rate
Net Take-Home Increase
₹25,20,000
Your actual annual gain
💡 How to Use This Calculator Effectively
- ✓ Step 1: Select your resident status (RI or NRI)
- ✓ Step 2: Choose your tax regime (New by default, or Old if you have deductions)
- ✓ Step 3: Enter old and new monthly salary
- ✓ Step 4: Review the tax impact and net take-home increase
- ✓ Step 5: Use 5-year projection to plan long-term
- ✓ Step 6: Consult a CA to finalize tax estimates (this excludes cess, surcharge, etc.)
Disclaimer: This calculator is for FY 2025–26 (AY 2026–27) salary-only estimation using official CBDT slab/surcharge/cess rules. It does not cover:
- Special-rate income (capital gains, dividend, etc.)
- DTAA relief or treaty benefits
- Employer-specific exemptions beyond standard deduction
- HRA exemption or other salary-specific deductions
- Marginal relief edge cases or manual adjustments
For accurate tax filing, consult a Chartered Accountant or the Income Tax Department.
Tax Slabs Reference (AY 2026–27)
New Regime
Old Regime
87A Rebate (Resident Only)
New: ₹60,000 if income ≤ ₹12L | Old: ₹12,500 if income ≤ ₹5L
Surcharge
10% (₹50L-₹1Cr) | 15% (₹1Cr-₹2Cr) | 25% (₹2Cr-₹5Cr) | 37% (>₹5Cr)
Cess
4% on (Income Tax + Surcharge)
Frequently Asked Questions
Q: What is the difference between New and Old Tax Regime?
A: New Regime: Lower tax rates but no deductions (80C, 80D, etc.). Best for those with few investments. Old Regime: Higher rates but allows deductions. Best for those with 80C investments, home loans, etc. From FY 2023-24, New Regime is default. Choose based on your deductions.
Q: Who are NRI (Non-Resident Indian) for tax purposes?
A: NRI status is determined by your physical presence in India and residence status. An NRI has a flat higher tax rate (20-35%) with no deductions allowed. Resident Indians (RI) get deductions and lower rates. Check with your tax consultant for your exact status.
Q: What is the correct formula for calculating tax on increment?
A: This calculator uses progressive tax slabs. Tax is calculated on your total annual income (old salary + increment), then compared to tax on old salary alone. The difference is tax on increment. This is more accurate than applying a flat rate.
Q: Why does my take-home increase less than the gross increment?
A: Because taxes apply to the increment! As your salary increases, you move to higher tax slabs. The effective tax rate on your increment could be 20-30% or higher. That's why we show both gross and net take-home amounts.
Q: What is the 5-year projection based on?
A: The 5-year projection assumes a 5% annual increment on your new salary. It shows how your salary and taxes grow over time. You can verify the tax calculations using this table and the tax slab reference provided.
Q: Is my salary data stored or shared?
A: No! All calculations happen entirely in your browser (client-side). We don't store, collect, transmit, or share any of your salary data. This calculator is 100% private.
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Accuracy, Expert Review & Official Sources
Built on official Indian tax regulations and verified by certified professionals
Last Updated: 9 February 2026
Specialized in financial tools, tax regulations, and calculator precision
Calculations verified against official Indian tax guidelines and regulations
This Salary Increment Calculator is built on official Indian tax regulations and government guidelines:
Official source for Indian income tax acts, rules, notifications, and guidance
Official income tax slab rates for FY 2025-26 under New and Old Tax Regime
Section 16 - Standard deduction rules and limits
This calculator is for informational and educational purposes only. This calculator applies FY 2025-26 tax rates and slabs for salary increment calculations. Results are estimates based on current regulations. Actual take-home salary may vary based on HRA applicability, additional income sources, investments, and applicable surcharge. Consult a qualified CA for personalized tax planning.
Key Limitations:
- • Does not constitute professional tax or legal advice
- • Individual tax situations are unique and may require adjustments
- • Changes in tax laws may affect accuracy of results
- • Additional deductions, exemptions, or taxes may apply
- • State-specific taxes and other regulations are not included
Always consult a qualified Chartered Accountant or tax professional before making tax-related decisions.
All calculations are performed locally in your browser. No data is sent to servers or stored. Your financial information remains completely private.
Meet the Toolisky Team
Specialists dedicated to making tax tools and calculators easier for everyone
Toolisky is an independent platform created to help users with tax calculations and educational insights. For official filing or legal decisions, users should consult a certified tax professional.