Bonus Tax Calculator 2026/27
See how much of a bonus you actually keep after Income Tax, National Insurance and student loan, based on your salary.
2026/27 rates · verified 11 October 2026
How bonuses are taxed
A bonus is taxed like the rest of your pay, at your marginal rate. If it pushes you into a higher band, the part above the threshold is taxed at the higher rate. There's no special bonus tax.
In the month it's paid, PAYE can take more than this calculator shows, because the bonus makes that month's pay look like a higher yearly salary. Income Tax usually evens out over the year; National Insurance is worked out per pay period, so it may not.
Keeping more of a bonus
If your employer allows bonus sacrifice, paying the bonus into your pension saves Income Tax and National Insurance. It can also keep you under £100,000 (the Personal Allowance taper) or £60,000 (the Child Benefit charge).
Frequently asked questions
How much tax will I pay on my bonus?
Your bonus is taxed at your marginal rate: typically 28% (20% tax plus 8% NI) for basic rate taxpayers, 42% for higher rate and 47% for additional rate in England. Between £100,000 and £125,140 it's 62%.
Why was so much tax taken off my bonus?
PAYE treats the bonus month as if you earned that much every month, so it may deduct more than you owe. Income Tax is usually corrected in later months or after the tax year ends.
Can I avoid tax on a bonus?
You can't avoid it, but bonus sacrifice into a pension, where offered, means no Income Tax or National Insurance on the amount sacrificed.
Related calculators
All rates, thresholds and dates on this page come from official sources, including GOV.UK, HM Revenue and Customs, the Scottish Government, Revenue Scotland and the Welsh Government. Last verified 11 October 2026.