Salary Hike Calculator for FY 2026–27
Use this free salary hike calculator to convert an increment percentage or new salary offer into annual gross increase, estimated monthly post-tax salary and effective in-hand hike. The tax estimate uses India's current Tax Year 2026–27 new or old regime rules.
Salary Hike Calculator
Calculate gross and estimated post-tax salary after a hike under India's FY/Tax Year 2026–27 rules.
Choose how to enter the salary change
Income-tax regime
New Annual Gross Salary
₹0
Salary-only estimate for one individual. It includes rebate, marginal relief, surcharge and 4% cess but excludes special-rate income and employer-specific payroll rules.
Reviewed on July 13, 2026 using the Income-tax Act, 2025 as amended by the Finance Act, 2026 and official Income Tax Department tax-rate guidance.
A salary hike percentage shows the change in annual gross salary, but it does not by itself show the increase reaching a bank account. Income tax, employee PF, professional tax, insurance, loan recovery and salary-component changes can reduce the monthly benefit. This calculator separates gross hike, estimated tax and optional payroll deductions.
How to use the salary hike calculator
- Choose whether to enter a hike percentage or a new annual salary offer.
- Enter current annual gross taxable salary, excluding employer-funded or non-cash CTC components.
- Select the new or old income-tax regime and taxpayer status.
- Under the old regime, enter eligible deductions other than the automatically applied ₹50,000 standard deduction.
- Optionally enter annual employee-side payroll deductions before and after the hike.
- Review gross increase, estimated annual tax, monthly post-tax salary and effective hike.
Salary hike formulas
The effective post-tax hike compares estimated annual post-tax salary after the increase with the corresponding amount before the increase. It is normally lower than the headline hike percentage when additional tax or payroll deductions rise.
CTC, gross salary and take-home salary are different
New-regime tax slabs for Tax Year 2026–27
| Taxable income slab | Rate on that slab |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
The new regime is the default under Section 202. For salary income, the calculator subtracts the ₹75,000 standard deduction. A qualifying resident individual with total income up to ₹12 lakh receives the Section 156 rebate; marginal relief can apply just above ₹12 lakh.
Old-regime rates used by this calculator
For a resident below 60, the old-regime basic exemption is ₹2.5 lakh; it is ₹3 lakh for a resident aged 60 to 79 and ₹5 lakh for a resident aged 80 or above. A non-resident uses the ₹2.5 lakh basic exemption regardless of age. The next slabs are 5% up to ₹5 lakh, 20% from ₹5 lakh to ₹10 lakh and 30% above ₹10 lakh. The calculator applies the ₹50,000 salary standard deduction and a resident-individual rebate when eligible total income does not exceed ₹5 lakh.
Example: 15% hike on a ₹12 lakh salary
Assume a resident individual below 60 uses the new regime, has no other income and enters no additional payroll deductions.
- Current annual gross salary: ₹12,00,000.
- New annual gross salary: ₹13,80,000.
- Gross annual increase: ₹1,80,000.
- Estimated tax before hike: nil after standard deduction and rebate.
- Estimated tax after hike: approximately ₹78,780 including 4% cess.
- Estimated monthly post-tax increase: approximately ₹8,435.
- Effective post-tax hike: approximately 8.4% before other payroll deductions.
Why a salary near ₹12.75 lakh may show zero new-regime tax
With salary income of ₹12.75 lakh and no other income, the ₹75,000 standard deduction can reduce total income to ₹12 lakh. A qualifying resident individual can then receive the Section 156 rebate, reducing regular slab tax to zero. Special-rate income, other income or loss adjustments can change this result.
Surcharge, marginal relief and 4% cess
The tool applies surcharge to salary-only taxable income above ₹50 lakh. New-regime surcharge rates are 10%, 15% and 25% at the applicable thresholds; old-regime rates can rise to 37% above ₹5 crore. It also applies threshold-based marginal relief and then adds 4% Health and Education Cess. Special-rate capital gains, dividends and other income can have separate surcharge caps and are outside this salary-only estimate.
Important limits of the estimate
- It assumes the entered annual amount is taxable gross salary, not full CTC.
- It does not model bonus timing, arrears, stock compensation, perquisites or special-rate income.
- Old-regime deductions are accepted as one amount; the tool does not validate individual section limits.
- Payroll deduction inputs affect post-tax salary but are not automatically treated as tax deductions.
- Monthly TDS can differ from annual tax because employers adjust withholding through the year.
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Frequently asked questions
How is salary hike percentage calculated?
Should I enter CTC or gross salary?
What is a 15% hike on ₹12 lakh?
Does the calculator show exact monthly in-hand salary?
Which new-regime slabs apply in FY 2026–27?
Can salary of ₹12.75 lakh have zero new-regime tax?
How should old-regime deductions be entered?
Are PF and professional tax included?
Does the salary hike calculator include surcharge?
Can I compare a job offer using the calculator?
Official sources
Disclaimer: This calculator provides an educational salary and tax estimate, not tax, payroll, employment or investment advice. Actual taxable salary, deductions, TDS and take-home pay depend on the offer structure, employer records, residence, other income, special-rate income and claim eligibility. Verify the result with payroll documents and the official tax portal or consult a qualified professional.