Bonus tax calculator
See how much of a bonus you keep after tax, National Insurance and any student loan, based on your salary.
What you keep
| Item | Amount |
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How bonus tax works
There is no special bonus tax rate
A bonus is taxed as ordinary pay through PAYE. It is added on top of your salary, so the part that falls into a higher band is taxed at the higher rate. A bonus is not taxed at a flat 40% or 50%, although it can feel that way on the payslip.
National Insurance applies too
Employee National Insurance is 8% on earnings between £12,570 and £50,270 and 2% above that. If you have a student loan, 9% of the bonus above your plan threshold is also repaid.
Large bonuses and the £100,000 line
If your total income goes over £100,000, your Personal Allowance is reduced by £1 for every £2 over. That makes the effective rate on income between £100,000 and £125,140 about 62% including National Insurance. Paying some of the bonus into your pension can bring this down, see the pension calculator.
What this calculator assumes
- You are taxed on your total pay for 2026/27, with the bonus taken as extra income in the same tax year.
- There are no pension contributions, other income, benefits in kind or tax-code adjustments.
- The bonus is paid as cash, not as shares or other benefits.
- Employer National Insurance is not shown, because it is paid by your employer, not you.
Questions people ask
How much of a £5,000 bonus will I keep?
It depends on your salary. On £30,000 you would keep about £3,600 (a 28% deduction). If the bonus takes you over £50,270 part of it is taxed at 42%, so you would keep less.
Why does my payslip show more tax than I expected?
Your employer usually works out the tax as if your pay for that month was a regular amount for the year, so the bonus month can look heavily taxed. The total for the year is corrected by the end of the tax year, and any overpayment can be refunded.
Can I reduce tax on my bonus?
Asking your employer to pay part of it into your pension is the most common way. It is taxed less, and may avoid higher-rate tax. See salary sacrifice explained.
Is what I type stored or shared?
No. The calculation runs in your browser and nothing you enter is sent to us. Our privacy page has the details.
Is this financial advice?
No. It gives an estimate for information only. For advice about your own situation, speak to a regulated adviser.