How marginal relief cuts the tax on income just above ₹12 lakh in the new regime
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 18 Oct 2026.Under the new regime, taxable income up to ₹12,00,000 pays no tax. Just above that line, marginal relief stops the tax from exceeding the income above ₹12,00,000. A salary of ₹12,80,000 leaves ₹12,05,000 taxable after the ₹75,000 standard deduction; the slabs would charge ₹60,750, but relief cuts that to ₹5,000, or ₹5,200 with cess. Enter your salary to see the relief applied step by step.
Salary is taken as the full amount before tax, and the employer's NPS contribution is assumed to be within the limit the law allows (10% of basic and DA in the old regime, 14% in the new). Capital gains, business income and relief under sections 89 and 90 are not included.
Estimates for information only, not financial advice. Slabs, rebate, surcharge and cess for FY 2026-27 (AY 2027-28) under the Income-tax Act, 2025, reviewed on 18 Oct 2026. Confirm with the Income Tax Department before you file.
| Item | Old regime | New regime |
|---|---|---|
| Gross total income | ₹12,80,000 | ₹12,80,000 |
| Standard deduction | ₹50,000 | ₹75,000 |
| Professional tax | ₹2,500 | ₹0 |
| Section 80C | ₹1,50,000 | ₹0 |
| Section 80D, health insurance | ₹25,000 | ₹0 |
| Total deductions | ₹2,27,500 | ₹75,000 |
| Taxable income | ₹10,52,500 | ₹12,05,000 |
| Tax before rebate | ₹1,28,250 | ₹60,750 |
| Rebate | ₹0 | ₹55,750 |
| Surcharge | ₹0 | ₹0 |
| Cess | ₹5,130 | ₹200 |
| Total tax for the year | ₹1,33,380 | ₹5,200 |
| Tax each month | ₹11,115 | ₹433 |
FY 2026-27 and FY 2025-26 · Rates and rules read from the sources listed on this page (the earliest on 18 Oct 2026); they may have changed since.
The page opens on FY 2026-27 with a salary of 12.8 lakh, a little above the rebate limit.
Move the Salary for the year slider to your own salary.
Read the note that marginal relief applies and the New regime tax it leaves.
Open New regime slabs to see the tax before and after the relief.
This income tax calculator works out what a salaried person in India pays under the old regime and the new regime at once, says which costs less and by how much, and shows the slab-by-slab working for both.
Sources: Income Tax Department slab tables, surcharge rates, cess and rebate for salaried individuals at incometax.gov.in. Rates reviewed on 18 October 2026. Estimates for information only, not financial advice.
The rest of the article, and all 7 questions about India Income Tax Calculator, are on the India Income Tax Calculator page.
In the new regime, taxable income up to 12,00,000 pays nothing because the rebate cancels the tax. A salaried person gets a standard deduction of 75,000 on top, so a salary of 12,75,000 with no other income comes to zero tax. Above that line the rebate shrinks and then stops.
Marginal relief takes over. The tax is held down to the amount of income above 12,00,000. At a taxable income of 12,10,000 the tax works out to 61,500 before relief, and you pay 10,000 plus 4% cess instead. The relief runs out once your income is about 12,70,600.
Surcharge is an extra percentage charged on the tax itself once taxable income passes 50,00,000, 1,00,00,000 or 2,00,00,000 (and 5,00,00,000 in the old regime). Marginal relief stops the jump costing more than the extra income: tax plus surcharge can never exceed what you would pay at the threshold plus the income above it.
Income tax nikale: enter your salary and your deductions, and both regimes are worked out side by side, slab by slab, with rebate, surcharge, marginal relief and 4% cess. In the new regime taxable income up to 12,00,000 pays nothing. Capital gains and business income are not covered. Rates were reviewed on 18 October 2026.
Rates and rules change; check the source before you rely on a figure.
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