Bonus Tax Calculator (FY 2025-26)
See the tax on a bonus at your marginal rate and how much take-home you keep, under either regime.
A bonus is taxed as ordinary income at your marginal rate. We compute it as the extra tax (including 4% cess) when the bonus is added on top of your salary, so slab crossings and the Section 87A rebate are handled correctly. Estimate only, not tax advice.
How bonus tax works in India (FY 2025-26)
A bonus is part of your salary income, so it is taxed at your marginal rate — the rate of the slab your top rupee falls into. A 4% Health & Education Cess applies on top.
Marginal slab rates (New regime, taxable income)
| Taxable income band | Marginal rate |
|---|---|
| ₹4,00,000 – ₹8,00,000 | 5% |
| ₹8,00,000 – ₹12,00,000 | 10% |
| ₹12,00,000 – ₹16,00,000 | 15% |
| ₹16,00,000 – ₹20,00,000 | 20% |
| ₹20,00,000 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Net bonus = bonus − marginal income tax − 4% cess on that tax.
Estimate for FY 2025-26. Actual TDS timing and your final tax may differ. This is not tax advice.
Frequently Asked Questions
- How is a bonus taxed in India?
- A bonus is treated as ordinary salary income and taxed at your marginal slab rate. There is no separate flat bonus tax — it simply stacks on top of your salary and is taxed at the rate of the slab it falls into, plus 4% cess.
- Why does my bonus seem heavily taxed?
- Because it sits on top of your salary, the whole bonus is taxed at your highest slab. If the bonus also pushes your taxable income past the Section 87A rebate limit, the extra tax can look large — this calculator captures that effect.
- How is the tax on the bonus computed here?
- We compute your income tax on salary alone and on salary plus bonus, then take the difference. This correctly handles slab crossings and the loss of the 87A rebate, giving the true marginal tax on the bonus.
- Does TDS on a bonus differ from this?
- Employers deduct TDS on bonuses as part of overall salary TDS, spread across the year. The final tax is what matters at filing — this calculator estimates that marginal tax, which may differ from the month the bonus is paid.
- Can the regime change the tax on my bonus?
- Yes. Your marginal slab depends on the regime and your deductions. Switch the toggle to compare the New and Old regimes.
📅 Last updated: June 2026 · Formulas follow standard banking / tax conventions · Results are for reference only.