Explore our collection of free tools and calculators to make informed decisions.
Explore All Tools
Your trusted hub for free calculators and tools. We make financial planning simple and accessible for everyone.
Tools & Calculators
Calculations
Fast Results
Trusted
See which tax regime — Old or New — stays cheaper as your income grows, not just this year. Project 5, 10, or 20 years of tax side by side.
A tax regime projection calculator income growth tool tells you which regime — Old or New — stays cheaper as your salary rises, not just this year. Enter your income once, set a growth rate, and see 5, 10, or 20 years of Old vs New Regime tax side by side. Salaried employees, freelancers, and small business owners use it before locking into tax-saving investments that only pay off under one regime. CAs and payroll teams use it to model multi-year outcomes for clients and employees. Try our <a href="https://toolisky.com/old-vs-new-tax-regime-calculator">Old vs New Tax Regime Calculator</a> first if you only need this year's number.
The projection runs the tax computation prescribed under Section 115BAC of the Income-tax Act, 1961 on your income after it compounds at your chosen growth rate, for every year in the window you set.
Projected Income (Year N) = Current Income × (1 + Growth Rate)^(N−1)
Taxable Income = Projected Income − Standard Deduction
(₹75,000 New Regime / ₹50,000 Old Regime, salaried only)
Tax = Slab-wise tax on Taxable Income
− Section 87A Rebate (up to ₹60,000 New Regime, with marginal relief /
up to ₹12,500 Old Regime, hard cliff — no marginal relief)
+ Surcharge (if taxable income > ₹50 lakh, with marginal relief)
+ 4% Health & Education CessNew Regime slabs (FY 2025-26 / AY 2026-27): ₹0–4L: Nil, ₹4–8L: 5%, ₹8–12L: 10%, ₹12–16L: 15%, ₹16–20L: 20%, ₹20–24L: 25%, above ₹24L: 30%.
Old Regime slabs (below 60 years): ₹0–2.5L: Nil, ₹2.5–5L: 5%, ₹5–10L: 20%, above ₹10L: 30%. Senior and super senior citizens get a higher exemption limit — check our <a href="https://toolisky.com/standard-deduction-tax-impact-calculator">Standard Deduction Tax Impact Calculator</a> to see how much that's worth for you.
The calculator runs this exact formula for every projected year and compares both regimes.
Rakesh earns ₹14,00,000 a year. He's salaried, below 60, and expects a 10% annual hike over the next 3 years.
Year 1 — Income ₹14,00,000
Year 2 — Income ₹15,40,000 (10% growth)
Year 3 — Income ₹16,94,000
The calculator runs this automatically for up to 20 years. You don't redo this math every time you get a hike.
Not always. It's usually better for people with few deductions, but if your income grows and you also claim large HRA, 80C, or home loan interest deductions, the Old Regime can become cheaper again at higher income levels. Run the projection with your real numbers to check.
Yes, if you have only salary and no business income, you can choose the regime afresh each year while filing your ITR. If you have business or professional income, you can switch back to the Old Regime only once in your lifetime after opting for the New Regime.
Use your average annual salary hike percentage over the last 2–3 years, or your typical appraisal increment (commonly 8–10% for salaried employees in India). Freelancers and business owners should use their realistic revenue growth estimate instead.
No, it compares both regimes assuming only the applicable standard deduction, since the New Regime disallows most other deductions. If you claim large deductions under the Old Regime, your actual Old Regime tax will be lower than what's shown here. Use the <a href="https://toolisky.com/section-87a-marginal-relief-calculator">Section 87A Marginal Relief Calculator</a> to check the rebate edge cases exactly.
Because tax is calculated in slabs, not as a flat percentage. Crossing a new slab boundary, the ₹12 lakh New Regime rebate cutoff, the ₹5 lakh Old Regime cliff, or a surcharge threshold can cause a bigger jump in one year than another, even with steady income growth.
Yes. Since AY 2024-25, the New Regime under Section 115BAC is the default for all individuals, HUFs, AOPs, and BOIs. You have to actively choose the Old Regime — salaried individuals do this in the ITR itself; business or professional taxpayers must file Form 10-IEA.
Budget 2026 kept the FY 2025-26 slabs, rebate limits, and surcharge rates unchanged for FY 2026-27, per multiple budget-day reports. Tax slabs are usually revised only in the Union Budget, so check incometax.gov.in each February before relying on multi-year projections.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
Explore other tools in the same category or find similar calculators
demo
Free calculator to compute Section 89(1) relief on salary arrears, applying the correct standard deduction (₹75,000 new regime / ₹50,000 old regime) for both the current year and the arrear year, per Rule 21A of the Income Tax Rules.
Calculate tax relief on salary arrears or advance salary under Section 89(1) using Rule 21A. Find your eligible relief amount, compare tax across financial years and prepare accurate Form 10E calculations for FY 2025-26.
Calculate the exact home loan interest and principal tax deductions for each co-owner based on ownership share, repayment contribution, co-borrower status and Income Tax Act provisions under Section 24(b), Section 80C and Section 26.