💰 Free UK Calculator · 2026/27

Bonus Tax Calculator
How Much Will You Keep?

There's no special bonus tax rate in the UK — your bonus is added to your salary and taxed at your highest marginal rate. See exactly what you'll take home.

Your details

£
£
Enter £0 if you're taking the full bonus as cash
£
Key rule: Bonuses are taxed at your marginal rate — the highest rate that applies to your total income. Basic rate taxpayers lose 28% (20% tax + 8% NI). Higher rate taxpayers lose 42% (40% + 2%). There is no special "bonus tax rate."

Your bonus breakdown

Bonus take-home
£2,163
After income tax and NI
Effective rate
28%
ItemSalary onlyWith bonus
Total income£35,000£38,000
Income tax£4,486£5,086
National Insurance£1,794£2,034
Annual take-home£28,720£30,880
Bonus take-home—£2,160
Bonus — tax band breakdown
BandRateAmount in bandTax

2026/27 HMRC rates. Standard 1257L tax code assumed. England/Wales only. Results are estimates.

Real-world bonus examples

How the tax works at different income levels — the most common scenarios people search for.

Basic rate taxpayer
Salary: £35,000
£5,000 bonus
Take home: £3,600
Tax + NI: £1,400 (28%)
Straddling the threshold
Salary: £45,000
£10,000 bonus
Take home: £6,770
Mixed rate — band split applies
Higher rate taxpayer
Salary: £60,000
£10,000 bonus
Take home: £5,800
Tax + NI: £4,200 (42%)
Near the 60% trap
Salary: £95,000
£15,000 bonus
Take home: ~£6,750
Effective rate 55%+ — sacrifice recommended

Why bonuses feel so heavily taxed

Your monthly salary benefits from the personal allowance (£12,570 tax-free) spread across 12 payslips — so each month feels lighter. When your bonus arrives as a lump sum, those lower bands are already used up by your salary. Your bonus sits on top and gets taxed at your highest marginal rate from the first pound.

If your salary is £45,000 and you receive a £10,000 bonus, the first £5,270 of the bonus fills the remaining basic rate band at 20%. The remaining £4,730 crosses into the higher rate band at 40%. The calculator shows this band split precisely — so you can see exactly where the threshold bite happens.

The most effective way to reduce this is bonus sacrifice into your pension. Ask your employer to redirect part or all of your bonus directly into your pension before PAYE is calculated. A higher rate taxpayer sacrificing £5,000 saves £2,100 in tax and NI — the pension receives £5,000, but your take-home only falls by £2,900.

Frequently asked questions

Bonuses are taxed as regular income under PAYE — there is no special bonus tax rate. Your bonus is added to your annual salary and the combined total determines which tax bands apply. Because your salary has already used up the personal allowance and basic rate band, your bonus is taxed at your highest marginal rate — often 40% or more for higher earners.
Because it is — but not unfairly. Your monthly salary benefits from the personal allowance spread across 12 months, so each payslip feels lighter on tax. A bonus arrives on top, with the lower bands already used up. If your salary is £45,000, a £10,000 bonus pushes £4,730 into the higher rate band at 40%, even though most of your salary is taxed at 20%.
Yes. Bonus sacrifice into your pension is the most effective method. Ask your employer to pay part or all of your bonus directly into your pension before tax is calculated. This saves both income tax and National Insurance. A higher rate taxpayer sacrificing a £5,000 bonus saves £2,100 — the pension receives £5,000 but take-home only falls by £2,900. Note: this must be agreed with your employer before the bonus is paid.
If you are new to a job without a P45, HMRC may apply an emergency tax code (BR, D0, or M1/W1) to your bonus, resulting in over-deduction. If you're on a cumulative code (1257L), any overpayment is usually corrected in subsequent payslips. If not corrected by year end, HMRC issues a P800 refund. Contact your payroll team to resolve emergency codes quickly.
Yes. Bonuses are subject to NI at the same rates as regular pay: 8% on earnings between £12,570 and £50,270, and 2% above £50,270. NI is calculated per pay period, so a large bonus in a single month can attract a higher NI rate temporarily, though the annual total should be the same on a cumulative tax code.
If your salary plus bonus pushes your total income into the £100,000–£125,140 range, your personal allowance tapers at £1 for every £2 over £100,000 — creating an effective 60% marginal rate. Bonus sacrifice is the most effective remedy: reducing your adjusted net income below £100,000 restores your full personal allowance and eliminates the trap.

Make your bonus work harder

See how salary sacrifice can reduce your tax bill — not just on bonuses, but on your full salary.

Sacrifice calculator → Salary calculator →

📋 Source: All figures based on HMRC published rates for the 2026/27 tax year. For official rates visit gov.uk/income-tax-rates and gov.uk/national-insurance-rates. Results are estimates — not financial advice.