UK Bonus Tax Calculator
Find out how much of your bonus you'll actually take home after income tax and National Insurance.
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Results are estimates only and do not constitute financial advice.
Common bonus examples — 2026/27
Based on a £35,000 base salary with no pension contributions. Click any row to load it into the calculator.
| Bonus | Income tax | NI | Net bonus | Effective rate |
|---|
How it's calculated
Your bonus is added to your annual salary and total income tax is calculated on the combined amount. The tax already due on your salary alone is then subtracted — the difference is the tax attributable to your bonus.
If your salary is close to a tax band threshold — for example £45,000 — part of your bonus will be taxed at 20% and the rest at 40%. This calculator handles that split automatically.
National Insurance works the same way. The NI on your bonus is the difference between NI on (salary + bonus) and NI on salary alone, calculated using the 8% main rate and 2% upper rate.
Frequently asked questions
Bonuses are taxed at your marginal rate, not an average. If your salary already takes you near the 40% threshold (£50,270), the portion of your bonus above that level is taxed at 40% — which can make the effective rate feel high even on a modest bonus.
There is no special bonus rate — bonuses are taxed as income at 20%, 40%, or 45% depending on your total earnings. You also pay National Insurance at 8% on earnings up to £50,270 and 2% above that.
Yes — pension contributions reduce your taxable income. Putting your bonus into a pension can significantly cut the tax you pay on it. A higher-rate taxpayer effectively gets 40p back for every £1 contributed.
UK tax rates 2026/27
These rates apply to your bonus based on your total earnings for the year.
| Band | Income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571–£50,270 | 20% |
| Higher rate | £50,271–£125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
| Threshold | Earnings | Rate |
|---|---|---|
| Below PT | Up to £12,570 | 0% |
| Main rate | £12,571–£50,270 | 8% |
| Upper rate | Over £50,270 | 2% |
Bonuses are taxed as regular income — they're added to your annual salary and taxed at your marginal rate. If your salary plus bonus crosses a tax band boundary (such as £50,270 or £100,000), part of your bonus will be taxed at a higher rate. This calculator shows the exact tax attributable to your bonus.