UK bonus tax calculator 2026/27
See how much of your bonus you will actually keep after Income Tax and National Insurance.
How UK bonus tax works
A bonus is treated as normal earnings. It is added on top of your salary and taxed at whatever rate applies to that slice of income. This calculator compares your yearly tax and NI with and without the bonus, so you see the true cost of tax on the bonus itself.
Rates used (2026/27)
- Income Tax: 20% from £12,571, 40% from £50,271, 45% over £125,140
- National Insurance: 8% between £12,570 and £50,270, 2% above
- Personal Allowance of £12,570, reduced by £1 for every £2 over £100,000
Watch out for these thresholds
£50,270: any part of a bonus above this is taxed at 40% plus 2% NI, so you keep about 58p in the pound.
£100,000: between £100,000 and £125,140 you lose your Personal Allowance as well, giving an effective rate of about 62%. Sacrificing a bonus into your pension can save a lot of tax here.
Bonus month vs the whole year
Your payslip in the bonus month may show more tax than this calculator, because PAYE assumes you are paid that much every month. Over the full tax year it usually balances out, and the yearly figure shown here is the one that matters.
Common questions
How is a bonus taxed in the UK?
A bonus is added to your pay and taxed the same way as salary, through PAYE. It is taxed at your marginal rate, so the bands it falls into decide how much you keep. There is no separate "bonus tax".
Why does my bonus month payslip show so much tax?
PAYE works out tax month by month. In the month you get a bonus, your pay looks much higher, so more of it can be taxed at 40% that month. If too much tax is taken over the year, HMRC normally corrects it through your tax code or a refund.
Can I avoid tax on my bonus?
Many employers let you sacrifice some or all of a bonus into your pension. This avoids Income Tax and National Insurance on the amount sacrificed, which is especially valuable if the bonus would take you over £50,270 or £100,000.
Does this include Scottish tax rates?
No. This calculator uses England, Wales and Northern Ireland bands. Scotland has different Income Tax bands, but National Insurance is the same.
Full UK tax calculator · UK salary after tax table
Estimates only, not tax advice. Excludes student loan repayments and Scottish Income Tax.