Bonus Tax Calculator UK
Work out the take-home pay from a work bonus for 2026/27. Enter your salary and bonus to see the income tax and National Insurance deducted, your net bonus and the effective deduction rate.
Calculator
What this means
A bonus is added on top of your salary and taxed at your marginal rate — the rate on your highest slice of income. That means a bonus can be taxed at 20%, 40% or 45%, plus 8% or 2% employee National Insurance, and can briefly trigger the 60% effective rate between £100,000 and £125,140.
How to use this calculator
- Enter your salary and your bonus amount.
- See the tax, National Insurance and any student loan taken from the bonus.
- See how much of the bonus you actually keep.
Worked example
A basic-rate taxpayer gets a £2,000 bonus.
- Income tax at 20% = £400; National Insurance at 8% = £160.
- £2,000 − £400 − £160 = £1,440.
You'd keep about £1,440 of the £2,000 bonus.
Who this is for
- Employees receiving a one-off or annual bonus.
- Anyone surprised by how much tax a bonus attracts.
- People considering sacrificing a bonus into a pension.
Why bonuses feel heavily taxed
A bonus is taxed like normal pay, but because it's added on top of your salary it can be taxed entirely at your highest rate — and may even push part of your income into a higher band that month.
Sacrificing a bonus into your pension avoids income tax and National Insurance on it, which can be especially valuable near the £50,270, £60,000 or £100,000 thresholds.
Frequently asked questions
Your bonus is taxed at your marginal rate on top of your salary. A basic-rate taxpayer typically loses 28% (20% income tax + 8% NI), while a higher-rate taxpayer loses around 42% (40% + 2%).
PAYE may deduct tax as if you earn that much every month, and a bonus can push part of your income into a higher band. Any over-deduction usually evens out over the tax year through cumulative PAYE.
You can't avoid it, but paying the bonus into your pension via salary sacrifice means it's taken before income tax and National Insurance, so you keep more of it. Speak to a qualified adviser before deciding.
Bonuses sit on top of your salary, so they're taxed at your marginal rate. PAYE can also briefly over-deduct in the bonus month, which usually evens out across the year.
You can't avoid it, but paying the bonus into a pension via salary sacrifice means no income tax or NI on that amount now — useful if you're near a tax threshold.
Disclaimer
This calculator provides estimates for guidance only. It is not financial, legal or tax advice. Always check official sources or speak to a qualified professional before making decisions.
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