# Tax on Bonus Calculator: How Much of Your Bonus You Keep > Tax on bonus calculator for FY 2026-27: see the tax on a bonus in either regime, including the INR 12 lakh rebate cliff that can tax a small bonus heavily. Source: https://trykosh.com/tools/tax-on-bonus-calculator Free tool - Income tax # Tax on bonus calculator Find out how much of a bonus survives tax, and watch out for the INR 12 lakh line, where a modest bonus can lose nearly half to tax. Rules checked 25 October 2026Free - no sign-upRuns in your browser Bonus in hand INR 1,67,500 Tax on the bonus: INR 32,500 (16.3%) You keep **INR 1,67,500**Tax **INR 32,500** Tax without bonus INR 97,500 Tax with bonus INR 1,30,000 Extra tax because of the bonus INR 32,500 A bonus is taxed as salary, at your highest slab. Putting part of it into employer NPS (80CCD(2)) can cut the tax. ## 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-tax-on-bonus-calculator) ## How the tax on bonus calculator works A bonus is salary, taxed at your slab rate in the year you receive it. The right way to measure its tax is incremental: your tax with the bonus minus your tax without it. That's what this calculator does, using the full regime rules. Most of the time the bonus is taxed at your marginal rate, so a INR 1 lakh bonus costs INR 15,600 to INR 31,200 in tax for most earners. But in the new regime, if your salary is below the INR 12.75 lakh rebate line and the bonus pushes you over it, you lose the rebate. Marginal relief softens this only just above the line. If a bonus would cross the line, asking for part of it as employer NPS contribution (deductible up to 14% of basic) can bring taxable income back under INR 12 lakh. ## Worked example: Tanvi's INR 1.5 lakh bonus on a INR 12 lakh salary On a INR 12 lakh salary Tanvi pays no tax. A INR 1.5 lakh bonus takes her taxable income to INR 12.75 lakh, past the rebate limit, and her tax jumps from zero to INR 74,100. She keeps only INR 75,900 of the bonus. Taking INR 75,000 of it as employer NPS instead would keep her taxable income at INR 12 lakh and her tax at zero. Bonus in hand INR 75,900 Tax on the bonus: INR 74,100 (49.4%) You keep **INR 75,900**Tax **INR 74,100** Tax without bonus INR 0 Tax with bonus INR 74,100 Extra tax because of the bonus INR 74,100 This bonus pushes you past INR 12 lakh, where the 87A rebate stops. Marginal relief softens the jump. [Load this example into the calculator ->](?salary=1200000&bonus=150000#calculator) ## Good to know - Your employer deducts TDS on the bonus in the month it's paid, often at a higher rate than your normal monthly TDS. - A joining bonus you have to repay on leaving early is still taxed when received; the repayment rules are complex, so keep records. - Bonuses under the Payment of Bonus Act are taxed the same way as performance bonuses. ## Frequently asked questions How much tax is deducted from a bonus? Your employer recalculates your annual tax with the bonus included and deducts the extra in the month of payment. That's why the bonus month often shows a large TDS figure. Can I avoid tax on a bonus? You can reduce it legally: ask for part as employer NPS contribution, or, in the old regime, use the room left in 80C, 80D and 80CCD(1B). The bonus itself is fully taxable. Is a bonus taxed in the year it's earned or paid? Generally when it's paid or due, whichever is earlier. A bonus for FY 2025-26 paid in June 2026 is taxed in FY 2026-27. ## Sources and assumptions - [Income Tax Department](https://www.incometax.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.