Bonus tax calculator
How much of a bonus you actually keep after income tax, National Insurance and student loan — worked as the top slice of your year, not a flat rate.
What you keep from a bonus
Runs in your browser. Nothing is sent anywhere and there is nothing to sign up to.
| Bonus after tax and NI | — |
|---|---|
| Income tax on the bonus | — |
| National Insurance on the bonus | — |
| Student loan on the bonus | — |
| Effective rate on the bonus | — |
| If the whole bonus went into your pension instead | — |
Figures reviewed: July 2026, for the 2026/27 tax year. Thresholds change every April — if you are reading this later, check the current figures at gov.uk/income-tax-rates. The income tax and NI engine behind this page is tested in our public verification log.
There is no "bonus tax"
A bonus is not taxed at a special rate. HMRC treats it as ordinary pay: it is added to your salary and taxed as the top slice of the year's income, at whatever marginal rate that slice lands in. That is why a bonus feels heavily taxed — every pound of it sits above your salary, so none of it benefits from the personal allowance or the lower bands your salary already used up.
On a £40,000 salary in England, a £5,000 bonus stays inside the basic-rate band, so it costs 20% income tax and 8% National Insurance: you keep about £3,600, an effective rate of 28%. On a £48,000 salary the same bonus straddles the higher-rate threshold at £50,270 — the first £2,270 costs 28%, the rest costs 42% (40% tax plus 2% NI) — and you keep about £3,220.
The rates a bonus can land in (2026/27)
| Where the bonus lands | Income tax | NI | You keep |
|---|---|---|---|
| Under £12,570 (rare — a very low salary) | 0% | 0% | 100% |
| £12,570 – £50,270 (basic rate) | 20% | 8% | 72p in the £ |
| £50,270 – £100,000 (higher rate) | 40% | 2% | 58p in the £ |
| £100,000 – £125,140 (allowance taper) | 60% effective | 2% | 38p in the £ |
| Above £125,140 (additional rate) | 45% | 2% | 53p in the £ |
Scotland has six income tax bands (19% to 48%), so the same bonus keeps a different amount there — choose Scotland in the calculator and it switches the whole band set. National Insurance is the same across the UK. A student loan takes a further 9% of the bonus (6% postgraduate) if your income is above your plan's threshold, because the loan is worked out on total pay too.
Why your payslip takes even more in the bonus month
PAYE works cumulatively. In the month the bonus is paid, your employer's payroll sees a large month and may deduct tax as though you earned that much every month — pushing more of the bonus into a higher band than it will actually end up in. On a cumulative tax code this corrects itself automatically over the following months as the year-to-date figures settle; on a non-cumulative (week 1 / month 1) code it does not, and you would reclaim the difference after the tax year ends. The calculator above shows the annual truth: what the bonus costs once the year is complete.
The £100,000 trap
Once your total income passes £100,000, your personal allowance is withdrawn at £1 for every £2 above it. A bonus that pushes you into that band is effectively taxed at 60% (plus 2% NI) until the allowance is gone at £125,140. A £10,000 bonus on a £95,000 salary keeps about £4,800 as cash — but the same £10,000 paid into your pension by salary sacrifice keeps the whole £10,000, and restores part of the allowance. This is the single situation where sacrificing a bonus is most clearly worth it.
Sacrificing a bonus into your pension
Many employers let you exchange some or all of a bonus for a pension contribution before it is paid. Because the bonus never becomes taxable pay, there is no income tax and no National Insurance on it — the pension receives the gross amount, and most employers pass on some of their own NI saving too. The last line of the calculator compares the two: the gross bonus in your pension against the net bonus in your pocket. You normally cannot take it until age 55 (57 from 6 April 2028, with some protected exceptions), and it counts towards your annual allowance (£60,000 in 2026/27, less if you are a very high earner), so it is a choice about timing, not free money.
Common questions
How much tax will I pay on a bonus in the UK?
The same rates as your salary, applied to the bonus as the top slice of your year's income. A basic-rate taxpayer loses 28% (20% income tax plus 8% National Insurance); a higher-rate taxpayer loses 42%; between £100,000 and £125,140 the effective rate is 62%. The calculator works out where your bonus lands.
Why was my bonus taxed at 40% when I am a basic-rate taxpayer?
Usually because PAYE deducted tax in the bonus month as if you earned that much every month. On a cumulative tax code this over-deduction is refunded through your later payslips in the same tax year; on a week 1 / month 1 code you claim it back from HMRC after April.
Is a bonus taxed differently from salary?
No. There is no separate bonus tax in the UK. It is added to your pay and taxed at your marginal rate, with National Insurance and any student loan repayment on top.
Should I put my bonus into my pension?
If your employer offers bonus sacrifice, the whole gross bonus goes into the pension with no income tax or NI, against 58p to 72p in the pound if you take it as cash — and only 38p between £100,000 and £125,140. You normally cannot take it until age 55 (57 from 6 April 2028, with some protected exceptions), and it counts towards your £60,000 annual allowance.
Does a student loan come off my bonus?
Yes. Repayments are 9% of pay above your plan's threshold (6% for a postgraduate loan), and a bonus is pay, so most or all of it is above the threshold.
Related calculators
Pay and earnings: Take-home pay calculator · Salary to hourly calculator · Hourly to salary calculator · Overtime pay calculator · Pro rata salary calculator · Salary sacrifice calculator · Student loan repayment calculator
UK tax: UK tax estimator · Scottish income tax calculator · National Insurance calculator · Self-employed tax calculator · Student loan repayment calculator · UK VAT calculator
More free tools
Take-home pay · Salary sacrifice · UK tax estimator · Scottish income tax · Student loan · Pension
Palarid is free and private. See all tools → · Embed this calculator · Trust Centre · About