# 87A Rebate Calculator FY 2026-27 with Marginal Relief > Section 87A rebate calculator for FY 2026-27: up to INR 60,000 off on taxable income up to INR 12 lakh in the new regime, and marginal relief just above it. Source: https://trykosh.com/tools/section-87a-rebate-calculator Free tool - Income tax # Section 87A rebate and marginal relief calculator See whether the 87A rebate wipes out your tax, and if you're just over INR 12 lakh, how much marginal relief you get. Rules checked 25 October 2026Free - no sign-upRuns in your browser Tax after 87A INR 20,800 Marginal relief applied Taxable income INR 12,20,000 Tax on slabs INR 63,000 − Marginal relief INR 43,000 \+ Cess INR 800 Tax payable INR 20,800 Your income is INR 20,000 above INR 12 lakh, so your tax before cess is capped at that INR 20,000. ## Upload your statement and Kosh does this for you. Upload a bank statement or salary slip and Kosh works out your tax under both regimes from your real numbers, finds the deductions you're missing and reminds you before every deadline. [Start free](/signup?via=tool-section-87a-rebate-calculator) ## How the 87A rebate calculator works Section 87A (section 156 in the Income-tax Act, 2025) gives resident individuals a rebate against their tax. In the new regime it's up to INR 60,000 when taxable income is INR 12 lakh or less; in the old regime it's up to INR 12,500 when taxable income is INR 5 lakh or less. Without marginal relief, earning one rupee over INR 12 lakh would make you lose the whole INR 60,000 rebate. So the new regime caps the tax at the amount by which your taxable income exceeds INR 12 lakh. This relief runs until about INR 12.7 lakh of taxable income, where ordinary slab tax becomes the smaller number. Enter your taxable income: income after the standard deduction and any other deductions. For a salaried person in the new regime, that's salary minus INR 75,000 minus employer NPS. New regime, taxable income T > INR 12L: tax before cess = min(slab tax on T, T − INR 12,00,000) ## Worked example: Taxable income of INR 12.3 lakh With taxable income of INR 12.3 lakh, slab tax is INR 64,500. That's more than the INR 30,000 by which income exceeds INR 12 lakh, so marginal relief of INR 34,500 brings it down to INR 30,000. With cess, the tax is INR 31,200. Tax after 87A INR 31,200 Marginal relief applied Taxable income INR 12,30,000 Tax on slabs INR 64,500 − Marginal relief INR 34,500 \+ Cess INR 1,200 Tax payable INR 31,200 Your income is INR 30,000 above INR 12 lakh, so your tax before cess is capped at that INR 30,000. [Load this example into the calculator ->](?taxable=1230000#calculator) ## Good to know - The rebate is for resident individuals only. NRIs don't get it. - It can't be used against tax on special-rate income such as STCG on equity (20%) or LTCG (12.5%). - In the old regime there's no marginal relief: taxable income of INR 5,00,001 loses the full rebate. ## Frequently asked questions What is the 87A rebate limit for FY 2026-27? New regime: up to INR 60,000 for taxable income up to INR 12 lakh. Old regime: up to INR 12,500 for taxable income up to INR 5 lakh. Is salary of INR 12.75 lakh tax-free? Yes, in the new regime. The INR 75,000 standard deduction brings taxable income to INR 12 lakh, where the rebate covers all the tax. What is marginal relief under the new regime? If your taxable income is a little above INR 12 lakh, your tax (before cess) can't exceed the amount above INR 12 lakh. Earning INR 20,000 more than INR 12 lakh costs at most INR 20,000 plus cess in tax. Can I claim the 87A rebate on capital gains? Not on tax on gains taxed at special rates, such as equity STCG under section 111A or LTCG. Gains taxed at slab rates, like debt fund gains, do count. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [Union Budget 2026-27](https://www.indiabudget.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.