Surcharge & Cess Calculator — FY 2025-26 (AY 2026-27)
Compute income tax surcharge and Health & Education Cess (4%) on your taxable income after deductions. Includes marginal relief on surcharge, optional capital-gains surcharge cap (15%), and an old vs new regime liability comparison for FY 2025-26 (with FY 2024-25 for prior-year filing).
Inputs
In the new regime the basic exemption is ₹3 lakh within slabs; you enter final taxable income after standard deduction and other adjustments—category mainly matters for the old regime slab set.
Net taxable income after deductions—not CTC or gross salary. Numbers use Indian grouping.
Not sure of taxable income? Use our old vs new regime comparator from gross salary, or the Form 16 estimator.
Surcharge on STCG (111A), LTCG (112A, 112), and dividend-related tax is capped at 15% of that component's tax, even if your total income sits in a higher surcharge bracket.
What-if: income vs total tax
Drag to see how total tax moves between ₹49 lakh and ₹6 crore for your **selected regime** (ignores capital-gains split for the curve).
Marginal relief quick check
Enter taxable income near a threshold (e.g. ₹50.5L–₹52L) to see if relief lowers your net surcharge versus the uncapped calc.
Without marginal relief (illustrative total): ₹12,69,840
After marginal relief: ₹12,23,200
Relief of ₹46,640 applied — net surcharge ₹66,154.
Total tax liability
₹20,93,520
Income tax
₹18,30,000
Surcharge (after relief)
₹1,83,000
Cess (4%)
₹80,520
Effective rate: 27.9% of taxable income
Effective tax burden (0–50% scale)
Green (roughly 0–20%), amber (20–30%), red (30%+). Pair marker with the numeric rate for accessibility.
- Income tax (before surcharge): On ₹75,00,000 under the new regime → ₹18,30,000
- Surcharge: Rate 10% on tax → before relief ₹1,83,000
- Marginal relief: Not applicable in this scenario
- Net surcharge: ₹1,83,000
- Cess 4%: on (tax + net surcharge) → ₹80,520
- Total: ₹20,93,520
Tax mix (% of total)
Regime comparison (same income)
| Component | Old regime | New regime |
|---|---|---|
| Income tax | ₹20,62,500 | ₹18,30,000 |
| Surcharge | ₹2,06,250 | ₹1,83,000 |
| Cess | ₹90,750 | ₹80,520 |
| Total tax | ₹23,59,500 | ₹20,93,520 |
| Effective % | 31.5% | 27.9% |
Green highlights the lower total for this income. For a full salary deduction scenario, use the regime comparator.
Surcharge slabs & cess (reference)
| Total taxable income | Surcharge (old regime) | Surcharge (new regime) |
|---|---|---|
| Up to ₹50 lakh | Nil | Nil |
| Above ₹50L – ₹1 crore | 10% of income tax | 10% of income tax |
| Above ₹1Cr – ₹2 crore | 15% of income tax | 15% of income tax |
| Above ₹2Cr – ₹5 crore | 25% of income tax | 25% of income tax |
| Above ₹5 crore | 37% of income tax | 25% (capped) |
Surcharge on listed-equity STCG (111A), equity-oriented LTCG (112A), certain LTCG (112), and dividend income is capped at 15%on the tax attributable to those amounts in both regimes. Health & Education Cess is 4% on income tax plus net surcharge (after marginal relief).
Guide: surcharge, cess & marginal relief in India
If your taxable income crosses ₹50 lakh, Indian income-tax law adds a surcharge on the tax, not on income directly. That nuance matters for planning: two people with similar salaries can have very different surcharge outcomes depending on deductions, capital gains, and whether they are in the old or new tax regime. Our calculator uses FY 2025-26-style slabs and lets you compare regimes side by side while showing Health & Education Cess at 4% on (tax + surcharge).
What is surcharge? It is an additional percentage applied to your computed income tax once income crosses set bands. Between ₹50 lakh and ₹1 crore the typical rate is 10% of tax, stepping up to 15%, 25%, and—for very high incomes in the old regime only—37%. Under the new regime, the top bracket does not reach 37%; surcharge stays capped at 25% even above ₹5 crore. Searching for surcharge on income tax calculator or income tax surcharge FY 2025-26 usually means you need both the correct slab and the post-relief number—this tool outputs both.
Who pays surcharge? Resident individuals and HUFs face these rates on their tax when taxable total crosses ₹50 lakh. You should start from income after Chapter VI-A and other deductions (and standard deduction in salary cases). That is why we label the field clearly and point you to internal tools—regime comparator, Form 16 estimator, and capital gains calculator—rather than off-site pages.
Marginal relief prevents a unfair spike when income is just above ₹50 lakh, ₹1 crore, ₹2 crore, or (in the old regime) ₹5 crore. Conceptually, your total tax including surcharge and cess should not rise by more than the rupees of extra income over the threshold; if the statutory calculation overshoots, relief trims the surcharge. The amber callout in the results surfaces this when it applies—many filers first hear about it from a notice or a CA; seeing the number upfront helps when modelling advance tax with our advance tax planner.
Capital gains and dividends: Certain capital gains and dividend income carry a 15% ceiling on the surcharge rate applied to the portion of tax from those heads, even when other income pushes you into a higher surcharge bracket on the rest. That is why we provide optional splits for STCG (111A), LTCG (112A / 112), and dividends. Interest on FDs is generally slab-taxed like ordinary income, so the regular surcharge rate applies to the tax on that slice.
Worked examples (illustrative): At roughly ₹51 lakh in the old regime, a full 10% surcharge on tax can overshoot the extra lakh of income—marginal relief pares back the surcharge. Near ₹1.01 crore, the move from 10% to 15% surcharge on tax can create another relief pocket. Above ₹2.1 crore, 25% surcharge on a large base tax moves the needle materially; above ₹5 crore the old vs new gap from the 37% vs 25% top rate is often decisive for net cash tax. Use the comparison table to see both regimes with your exact taxable income.
Health & Education Cess is the same 4% layer across these stages for individuals and HUFs in this model—applied on income tax after net surcharge. People also search health education cess calculator when they want to verify the final figure before paying advance tax or tying out Form 16; we show cess explicitly in the breakdown.
Related calculators (on this site)
- Old vs new tax regime comparator
- Form 16 tax estimator
- Capital gains tax calculator
- Advance tax calculator
Frequently asked questions
What is surcharge on income tax in India?
Surcharge is an extra levy calculated as a percentage of your income tax (before cess), not as a percentage of your income. It applies when total taxable income crosses certain limits—currently starting above ₹50 lakh for individuals and HUFs. After surcharge, Health and Education Cess at 4% is charged on income tax plus surcharge.
At what income does surcharge apply?
For individuals and HUFs, surcharge is nil up to ₹50 lakh of taxable income. Above ₹50 lakh, the surcharge rate depends on how high your income is (10%, 15%, 25%, and in the old regime up to 37% above ₹5 crore). The new tax regime caps the top surcharge at 25% even above ₹5 crore.
What is the surcharge rate above ₹1 crore?
For income above ₹1 crore and up to ₹2 crore, surcharge is generally 15% of the income tax amount in both old and new regimes. Rates change again above ₹2 crore and, in the old regime only, above ₹5 crore. Always apply surcharge on the tax payable, not on gross income.
Is surcharge the same in old and new tax regime?
The surcharge slabs are the same up to ₹5 crore. The key difference is that under the new regime (Section 115BAC), surcharge does not go to 37% above ₹5 crore—it stays capped at 25%. Income tax slabs and rebates differ by regime, so your base tax and surcharge amount will still differ.
What is Health and Education Cess?
Health and Education Cess is currently 4%. It is levied on income tax after surcharge (after marginal relief, if any). There is generally no separate exemption from this cess for individuals and HUFs at these stages of computation.
What is marginal relief in surcharge?
Marginal relief ensures that when your income is just above a surcharge threshold, the extra total tax (including surcharge and cess) does not exceed the extra income over that threshold. If the statutory calculation would make you pay more in extra tax than you earned above the limit, relief reduces the surcharge so the increase in tax aligns more fairly with the increase in income.
Does surcharge apply on capital gains?
Yes—capital gains form part of taxable income, and surcharge is computed on total income-tax liability. However, surcharge on tax attributable to listed equity STCG (Section 111A), equity-oriented LTCG (Section 112A), certain LTCG under Section 112, and dividend income is capped at 15% of that component’s tax, even if your total income attracts a higher surcharge rate on other income.
Do I pay surcharge on FD interest or dividends?
Bank FD interest is usually taxed at slab rates as ordinary income, so the full surcharge rate for your income level applies to the tax on that interest. Dividend income is taxed in your hands at applicable rates; for surcharge, the law caps the surcharge rate on the dividend-related tax component at 15%, similar to certain capital gains.
Is surcharge part of advance tax?
Yes. Estimated advance tax should be based on total liability, including income tax, surcharge (after marginal relief where applicable), and cess. Underpaying advance tax can attract interest; use your projected taxable income and regime to estimate the full amount.
How is surcharge different from cess?
Surcharge is a progressive add-on on income tax when income crosses high thresholds; the rate jumps by income band. Cess is a flat 4% on the sum of income tax and surcharge (after marginal relief). Surcharge reflects ability-to-pay at very high incomes; cess funds specific education and health spending.
Disclaimer: This page is for education and rough estimation only. Real-world tax can include rebates, special rates, exemptions, and rounding conventions not modelled here. Consult a qualified CA for filing decisions.