Surcharge Marginal Relief Calculator
See exactly how much surcharge you owe above ₹50L, ₹1Cr, ₹2Cr and ₹5Cr — and how marginal relief caps the extra tax when your income just crosses a threshold.
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Surcharge & marginal relief breakdown
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We compute surcharge, marginal relief and structure your income to save legally.
Disclaimer: Indicative estimate for individual residents. Slab tax uses the FY 2026-27 new/old-regime rates; surcharge and marginal relief per the Finance Act 2025. Special-rate income (capital gains, dividends) carries its own surcharge caps.
What is surcharge and marginal relief
Surcharge is an extra levy charged on your income tax (not on income) once total income crosses certain high thresholds. Because a surcharge slab switches on the moment you cross a threshold, a person earning ₹50,00,001 could otherwise pay far more tax than the ₹1 of extra income they earned. Marginal relief is the statutory cap that prevents this: the additional tax-plus-surcharge on income above a threshold can never exceed the additional income above that threshold.
| Up to ₹50,00,000 | Nil |
| ₹50L – ₹1Cr | 10% |
| ₹1Cr – ₹2Cr | 15% |
| Above ₹2Cr | 25% |
| Up to ₹50,00,000 | Nil |
| ₹50L – ₹1Cr | 10% |
| ₹1Cr – ₹2Cr | 15% |
| ₹2Cr – ₹5Cr | 25% |
| Above ₹5Cr | 37% |
How marginal relief is calculated
At each threshold the law compares two numbers. (1) The tax + surcharge actually payable on your income. (2) The tax on income exactly at the threshold, plus the extra income you earned above it. If (1) is larger, the difference is refunded as marginal relief — surcharge is reduced by that amount. The example below is a ₹51 lakh case in the new regime, computed live above. (In the new regime, relief tapers out just past ₹51.5L — set the calculator to ₹51,00,000 to reproduce it.)
Key terms explained
Surcharge thresholds
Surcharge applies on the income-tax amount once total income crosses ₹50L (10%), ₹1Cr (15%), ₹2Cr (25%) and — old regime only — ₹5Cr (37%). The new regime caps surcharge at 25%.
Marginal relief
A statutory cap ensuring the extra tax plus surcharge paid on income above a threshold never exceeds the extra income earned above that threshold. It smooths the jump at each surcharge slab.
Health & education cess
A flat 4% levied on income tax plus surcharge (after marginal relief) in both regimes. It is added last, after relief has already reduced the surcharge.
Threshold tax
The slab tax on income sitting exactly on a surcharge threshold (e.g. ₹13,30,000 at ₹50L in the new regime). Marginal relief is measured against this reference point, not against your own tax.
Questions people ask
Short answers on Marginal Relief Calculator. Tap a question to open it.
01What is surcharge on income tax?
An additional levy on the tax itself once income crosses a threshold — 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore under the old regime. Under the new regime the highest surcharge rate is capped at 25%.
02What is marginal relief?
A relief that ensures the extra tax and surcharge payable on crossing a threshold never exceeds the income by which you crossed it. Without it, earning ₹1 more than ₹50 lakh could cost far more than ₹1 in tax.
03Is there marginal relief on the section 87A rebate too?
Yes. Under the new regime, where income marginally exceeds the rebate threshold, relief limits the tax to the amount by which income exceeds that threshold — so the tax does not jump abruptly at the boundary.
04Does marginal relief apply to cess?
No. Health and education cess at 4% is computed on tax plus surcharge after marginal relief has been applied. Cess itself gets no relief.
05Do companies get marginal relief?
Yes. Domestic companies get marginal relief at the ₹1 crore and ₹10 crore surcharge thresholds, on the same principle — the additional tax cannot exceed the additional income.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.