Bonus tax calculator
A bonus is taxed as salary, at the highest slab your income reaches, so the share you keep depends on everything else you earn. Enter your fixed CTC and the bonus to see the tax on it and what lands in your account.
Your pay and bonus
18 LPA, without this bonus
Performance bonus, variable payout, joining or retention bonus
Regime
Bonus you keep
₹1,58,400
₹41,600 of the ₹2,00,000 goes to income tax and cess, 20.8% of the bonus.
- Tax on bonus
- ₹41,600
- Share you keep
- 79.2%
- Taxable income before
- ₹16,17,000
- Taxable income after
- ₹18,17,000
Other bonus sizes on the same salary
| Bonus | Tax | You keep | Rate on bonus |
|---|---|---|---|
| ₹50,000 | ₹10,400 | ₹39,600 | 20.8% |
| ₹1,00,000 | ₹20,800 | ₹79,200 | 20.8% |
| ₹2,00,000 | ₹41,600 | ₹1,58,400 | 20.8% |
| ₹3,00,000 | ₹62,400 | ₹2,37,600 | 20.8% |
| ₹5,00,000 | ₹1,10,084 | ₹3,89,916 | 22.0% |
| ₹10,00,000 | ₹2,51,368 | ₹7,48,632 | 25.1% |
Bonus is not PF wages, so no EPF is deducted from it. Payroll usually takes most of the extra tax in the month the bonus is paid; the yearly total matches this figure.
Questions
No. A bonus is salary income and is taxed at your slab rate along with the rest of your pay. Payroll usually deducts most of the extra tax in the month the bonus is paid, which is why that payslip looks smaller than expected; the yearly total is what this calculator shows.
Yes. Under the new regime taxable income up to ₹12 lakh is tax free, and marginal relief limits the tax just above it to the income above ₹12 lakh. A bonus that carries you past the limit loses almost all of the excess to tax until relief runs out at about ₹12.7 lakh of taxable income.
No. A joining bonus is salary in the year you receive it and is taxed at your slab. Most offers ask you to repay it if you leave within a year, so check the clawback clause before you count it as income.