Marginal Relief Calculator
See how much marginal relief reduces your tax just above the ₹12L rebate threshold.
Your inputs
Under the new regime, income up to ₹12L is tax-free. Marginal relief caps the tax on income just above that so it never exceeds (income − ₹12L).
Estimates only. Figures are indicative and do not constitute financial advice.
About the Marginal Relief Calculator
If your taxable income is somewhere just above ₹12 lakh under the new tax regime, you might have noticed something odd — a small increase in income shouldn't cause a huge jump in tax, and it doesn't, thanks to marginal relief. This calculator shows exactly how much relief you get and what your actual tax payable is in this specific income band.
Under the new regime, taxable income up to ₹12 lakh is entirely tax-free due to the Section 87A rebate. But without marginal relief, someone earning ₹12,10,000 would suddenly owe tax calculated on the full slab structure — which could exceed the ₹10,000 they earned over the threshold, an unfair cliff-edge effect. Marginal relief fixes this by capping your tax at exactly (your income minus ₹12,00,000), so you never pay more in tax than the amount by which your income exceeds the rebate threshold. This relief tapers off as your income rises further, until normal slab-rate taxation takes over completely. This calculator is useful for anyone whose income sits in this narrow but confusing band — for example, deciding whether a small bonus or raise that pushes you just over ₹12L is actually worth less in take-home pay than you'd expect (it isn't, thanks to this relief).
How to use this calculator
- Enter your taxable income (between roughly ₹11L and ₹15L to see the relief zone).
- See your slab tax, the relief applied, and your actual tax payable.
Frequently asked questions
›What is marginal relief in income tax?
It's a provision ensuring that tax on income just above the ₹12L rebate threshold (new regime) never exceeds the amount by which your income exceeds ₹12 lakh, avoiding a sudden tax spike.
›At what income does marginal relief stop applying?
It phases out once your normal slab-calculated tax becomes less than (income − ₹12,00,000) — beyond that point, you pay tax as per the regular slab structure with no further relief.
›Does marginal relief apply to the old tax regime too?
The old regime has its own Section 87A rebate up to ₹5 lakh income with a similar marginal relief concept, but this calculator specifically models the new regime's ₹12L threshold.
Read the full guide
Marginal Relief Explained: The Narrow Band Where It Actually Matters