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Surcharge & Marginal Relief Calculator

Surcharge is a percentage of the tax and switches on the moment income crosses a threshold, so without relief a small raise can cost more than it pays. This shows the relief and the cliff it removes.

Also called: marginal relief calculator, surcharge on income tax.

₹
Regime
Tax year
Marginal relief
₹91,250

Relief of ₹91,250 cuts the surcharge from ₹1,08,750 to ₹17,500. Without it, crossing the threshold would have cost ₹91,250 more in tax than the income that triggered it.

Surcharge before relief
₹1,08,750
Surcharge actually payable
₹17,500
Threshold crossed
₹50,00,000
Income above the threshold
₹25,000
Tax that relief prevents
₹91,250
Total tax payable
₹11,49,200
How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Compare two positions: yours, and someone earning exactly the threshold. The law will not allow the extra tax to exceed the extra income, so relief is the amount by which it otherwise would. At a hundred rupees over fifty lakh the raw surcharge is over a lakh, and relief cuts it to a few tens of rupees.

relief = max(0, (tax + surcharge at your income) - tax at the threshold - (your income - threshold))
I_a
Your income (currency)
I_t
The surcharge threshold (currency)
T_a
Tax at your income (currency)
T_t
Tax at the threshold (currency)
S_a
Surcharge before relief (currency)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

just over fifty lakh, where the cliff would be

Total income
₹50,75,100
Regime
New regime (default)
Tax year
FY 2025-26 (AY 2026-27)

Marginal relief₹1,07,933

Standard deduction of 75,000 leaves 50,00,100 taxable, a hundred rupees past the threshold

Open this example

far past the threshold, surcharge applies in full

Total income
₹80,00,000
Regime
New regime (default)
Tax year
FY 2025-26 (AY 2026-27)

Marginal relief₹0

Relief tapers to nothing once the extra income exceeds the extra tax

Open this example

comfortably below the threshold, no relief and no surcharge

Total income
₹30,00,000
Regime
New regime (default)
Tax year
FY 2025-26 (AY 2026-27)

Marginal relief₹0

boundary: relief only exists where surcharge does

Open this example

Method and limits

What it assumes

  • Ordinary income only. Surcharge on capital gains is capped separately.

What it deliberately does not model

  • Relief is computed at the highest threshold crossed, which is where it binds.

Sources

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Is marginal relief automatic?
It is part of the computation rather than something claimed separately, so a correctly filed return already reflects it. It is worth checking, because it is the item calculators most often get wrong.