UK Bonus Tax Calculator

Bonuses are added to your pay in the month they are paid and taxed through PAYE at your marginal rate.

Updated 2026-10-03 · 2026/27 HMRC rates

Bonus you keep after tax and NI£3,60072% of the bonus · marginal rate 28%

Income tax on bonus	£1,000
NI on bonus	£400
Student loan on bonus	£0

Your result is ready

Key facts

The personal allowance stays at £12,570 in 2026/27 and is reduced by £1 for every £2 of adjusted net income over £100,000, so it is gone entirely at £125,140 (HMRC income tax rates and allowances).
In England, Wales and Northern Ireland, 2026/27 income tax is 20% on the first £37,700 of taxable income, 40% up to £125,140 and 45% above that (HMRC rates and thresholds for employers 2026 to 2027).
Scotland has six bands in 2026/27: 19% starter on the first £3,967 of taxable income, 20% basic to £16,956, 21% intermediate to £31,092, 42% higher to £62,430, 45% advanced to £125,140 and 48% top above that (HMRC rates and thresholds for employers 2026 to 2027).
Budget 2025 extended the freeze on income tax thresholds and the equivalent employee and self-employed National Insurance thresholds for a further three years, from April 2028 to April 2031 (HM Treasury Budget 2025).
Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 a year and 2% above that in 2026/27 (HMRC rates and thresholds for employers 2026 to 2027).
Employers pay 15% National Insurance on earnings above the £5,000 secondary threshold, and eligible employers can claim an Employment Allowance of £10,500 (HMRC rates and thresholds for employers 2026 to 2027).
Self-employed people pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270 and 2% above that; voluntary Class 2 costs £3.65 a week if profits are below £7,105 (GOV.UK self-employed National Insurance rates).
Dividend tax rose by 2 percentage points from April 2026: the basic rate is now 10.75% and the higher rate 35.75%, while the additional rate stays at 39.35% and the dividend allowance stays at £500 (GOV.UK tax on dividends).

Why a bonus month can show more tax than the calculator

The calculator shows the tax your bonus costs over the whole year. Your payslip in the bonus month can look different because PAYE works through the year a month at a time. Most tax codes are cumulative: in month 9 (December), payroll compares your total pay since 6 April with nine twelfths of your allowance and bands. A bonus late in the tax year usually fits inside the bands you have built up. A bonus early in the year, when only one or two months of bands are available, can push part of it into 40% temporarily. Later payslips then refund the excess.

Example for a £35,000 salary and a £5,000 bonus, outside Scotland:

Paid in April (month 1): the April payslip takes about £1,746 of income tax on the bonus, because only one month of the basic-rate band (£3,141.67) is available.
Paid in March (month 12), or looked at over the whole year: the bonus costs £1,000 of income tax, all at 20%.
If you are on a non-cumulative code (ending M1, W1 or X), the April-style result is not corrected by payroll. You would get the excess back from HMRC after the year ends, usually through a P800.

National Insurance and student loan on a bonus are calculated differently

NI and student loan repayments are worked out on each pay period with no catch-up across the year. For NI this can work in your favour. In a month when your pay goes over £4,189 (the monthly Upper Earnings Limit), everything above that point is charged at 2%, not 8%, even if your annual salary is well below £50,270.

In the £35,000 example, the bonus month's NI on the £5,000 is about £176 on a monthly basis, compared with the £400 an annual calculation (and this calculator) would show. The calculator's figure is a safe upper estimate.

Student loans work the other way. A bonus month can trigger repayments even if your annual income ends up below the threshold. If that happens, you can ask the Student Loans Company for a refund once the tax year has ended and your annual income has been confirmed with HMRC.

How much of a bonus you keep at different salaries

The same £5,000 bonus is worth very different amounts depending on your base pay. Figures are annual, outside Scotland, with no pension or student loan.

Base salary	Bonus kept	Share kept	Main reason
£30,000	£3,600	72%	Basic rate + 8% NI
£48,000	£3,218	64%	Crosses into the 40% band
£60,000	£2,900	58%	Higher rate + 2% NI
£98,000	£2,300	46%	Partly into the allowance taper
£105,000	£1,900	38%	Effective 60% band
£130,000	£2,650	53%	Additional rate

Sacrificing a bonus into your pension

Bonus sacrifice swaps some or all of a cash bonus for an employer pension contribution. Because the bonus is never paid as salary, there is no income tax or employee NI on it, and your employer saves 15% employer NI, which some employers add to your pension.

It only works if your employer offers it and the change is agreed before the bonus is paid, so ask about the scheme's deadline well in advance. HMRC's rules also say a sacrifice must not take your cash pay below the National Minimum Wage. For someone on £110,000, a £10,000 cash bonus would leave about £3,800 after tax and NI, while sacrificing it puts the full £10,000 (plus any shared employer NI) into the pension.

Checklist before your bonus is paid

A few minutes of checking can save a refund claim later.

Check your tax code on your payslip or in the HMRC app. A wrong code turns a normal bonus into an overtaxed one.
If the bonus could push adjusted net income over £60,000 or £100,000, decide in advance whether to sacrifice part of it.
Ask whether your pension contribution is taken from bonuses. Some schemes use basic salary only.
Keep the payslip. If the year's tax does not balance, HMRC will issue a P800 between June and March after the tax year.

Frequently asked questions

Is my bonus taxed at a higher rate?

It is taxed at your normal marginal rate. It can look higher because PAYE treats that month as unusually high pay; the overall tax for the year evens out.

Why was so much tax taken from my bonus?

Usually because PAYE taxes the bonus month using one month of your allowance and bands, or because you are on a non-cumulative or wrong tax code. Over the year a cumulative code normally corrects it.

Can I get back tax overpaid on a bonus?

On a cumulative code, later payslips refund it automatically. Otherwise HMRC refunds it after the tax year through a P800 calculation.

Do I pay National Insurance on a bonus?

Yes. NI is worked out on the bonus month's total pay: 8% up to £4,189 a month and 2% above that.

Does a bonus count towards student loan repayments?

Yes. Repayments are worked out per pay period, so a bonus month can trigger them. If your annual income ends up below the threshold, you can ask for a refund after the tax year.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.