See what your salary hike is really worth after tax — compare New vs Old Regime, RI vs NRI, for FY 2025-26.
Free Annual Salary Increment Calculator for FY 2025-26 (AY 2026-27) that shows what your hike is actually worth after tax — not just the headline percentage. Enter your old and new monthly salary to instantly see your increment amount, tax owed under both the New and Old Tax Regime, and your real net take-home increase. Built separately for Resident Indians (RI) and NRIs, the calculator applies the correct slab structure, Section 87A rebate, surcharge, and 4% cess for each. It also breaks down your CTC into Basic, HRA, DA, Medical, and Bonus, and projects your salary and cumulative tax over the next 5 years assuming a 5% annual increment. All calculations run client-side in your browser — nothing is stored or transmitted. Use this before a performance review, offer negotiation, or job switch, and confirm final numbers with a Chartered Accountant before filing.
This salary increment calculator works out what your hike actually means once tax takes its cut. Built for FY 2025-26, it covers both the New and Old Tax Regime, with separate rules for Resident Indians and NRIs. You'll also get a 5-year salary projection and a full CTC breakdown — so you know the real number, not just the headline percentage.
This calculator applies the New Regime's 7-tier slab, the Old Regime with standard deduction, and a simplified 3-tier NRI slab for FY 2025-26, along with the Section 87A rebate, applicable surcharge, and 4% cess. The 5-year salary projection assumes a flat 5% annual increment and won't reflect bonuses, promotions, or off-cycle hikes. The CTC breakdown into Basic, HRA, DA, Medical, and Bonus uses standard proportions and may not match your employer's exact structure. For the finer print on what this tool does and doesn't account for, see the accuracy and limitations page.
This one's built specifically for FY 2025-26 (AY 2026-27). It'll help you:
Tax calculations
Beyond the basics
The tax estimates here exclude cess (4%), surcharge, and standard deductions. These figures are for reference, not for filing. Your actual liability depends on your specific investments, deductions, and circumstances, so run the final numbers past a Chartered Accountant before you file. If you'd rather start with a straightforward income tax calculator for salaried employees and layer in the increment math separately, that works too.
Here's what a 60% hike looks like in practice:
| Item | Amount |
|---|---|
| Gross annual increment | ₹36,00,000 (+60%) |
| Monthly increment | ₹3,00,000 |
| New Regime (RI) tax | ₹10,80,000 (30% effective rate) |
| Old Regime (RI) tax | ₹10,80,000 (30% effective rate) |
| Net take-home increase | ₹25,20,000 |
That last number — ₹25,20,000 — is what actually lands in your account each year. When you're negotiating or planning around a raise, that's the figure to anchor on, not the headline percentage.
| Income Range | New Regime | Old Regime |
|---|---|---|
| ₹0 – ₹2.5L / ₹4L | 0% | 0% |
| ₹2.5L – ₹4L / ₹5L – ₹8L | 0% / 5% | 5% |
| ₹4L – ₹8L / ₹5L – ₹10L | 5% | 20% |
| ₹8L – ₹12L | 10% | 30% |
| ₹12L – ₹16L | 15% | 30% |
| ₹16L – ₹20L | 20% | 30% |
| ₹20L – ₹24L | 25% | 30% |
| ₹24L+ | 30% | 30% |
If you want the full context behind these brackets rather than just the numbers, the income tax slabs guide walks through how each one applies and where the slab boundaries can trip people up.
One thing people frequently miss: the standard deduction (₹75,000 under New Regime, ₹50,000 under Old Regime) applies to your total annual income — it doesn't reset or double if your hike takes effect mid-year. If you joined a company partway through the financial year, your employer's TDS may not reflect this correctly, so it's worth cross-checking your Form 16 against the actual deduction you're entitled to claim.
This tool handles FY 2025-26 (AY 2026-27) salary-only estimation using the official CBDT slab, surcharge, and cess rules. It won't calculate:
For those, a Chartered Accountant or the Income Tax Department is your best bet.
All calculations run locally in your browser — nothing about your salary reaches our servers.
Because no data ever leaves your device, there's genuinely nothing for a third party to access or intercept.
What's the actual difference between New and Old Tax Regime?
New Regime gives you lower rates but strips out deductions — no 80C, no 80D, none of that — which suits people without many investments. Old Regime has higher rates but lets you claim deductions, so if you've got 80C investments or a home loan, it can work out cheaper overall. New Regime has been the default since FY 2023-24. Which one actually saves you money depends entirely on your total deductions, so it's worth running both through this tax regime comparison before you commit.
Who counts as NRI for tax purposes?
Your NRI status comes down to how much time you physically spend in India each year. NRIs pay a flat, higher rate (20–35%) with no deductions available, while Resident Indians get access to deductions and lower slabs. If you're not sure which category applies — especially in years when you've traveled frequently or changed employers across borders — check with a tax consultant rather than assuming.
How is tax on an increment actually calculated?
This calculator applies progressive tax slabs to your total income (old salary plus the increment), then compares that against the tax on your old salary alone. The gap between those two figures is your tax on the increment. People often undercount this by applying a flat rate to just the raise amount — that approach misses the slab interaction and tends to produce a lower number than what you'll actually owe.
Why does my take-home go up by less than the increment?
Your increment gets taxed at whatever rate applies to that portion of your income, and because a raise can push you into a higher slab, the effective rate on just the increment may run 20–30% or more. That's the gap between gross and net, and it's exactly why we show both figures side by side rather than just the headline percentage.
What's the 5-year projection based on?
It assumes a 5% annual increment on your new salary each year going forward. You can check the math yourself against the tax slab table above — there's no hidden logic in the projection.
Is my salary data stored anywhere?
No. Calculations happen entirely in your browser and nothing is transmitted to our servers, logged, or shared with any third party. Your figures never leave your device.
How do I work out my real salary increase after tax?
Take the difference between your new and old take-home pay after applicable income tax. This calculator applies FY 2025-26 slabs, standard deductions, cess, and surcharge based on your residential status and regime choice, so you don't have to do that math manually.
How is NRI salary taxed differently?
NRIs are taxed on income earned in India or received into India during the financial year. Income earned abroad and not remitted here generally isn't taxable in India. Your NRI status is determined by residency rules, and once established, your taxable Indian income is taxed at the applicable slab rate after allowed deductions.
What are the FY 2025-26 income tax slabs?
Rates run from 0% to 30% depending on your regime and income level. Under the New Regime, tax kicks in above ₹4 lakh after the standard deduction. Under the Old Regime, the same 0–30% range applies but with exemptions and deductions factored in. Standard deduction is ₹75,000 under the New Regime and ₹50,000 for salaried employees under the Old Regime.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
For informational purposes only. Results are estimates based on the inputs you provide and the rules in effect for the period shown, and are not tax, legal or financial advice. Verify figures against the relevant official source and consult a qualified professional before acting on them. Accuracy & limitations
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