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Bonus Tax Calculator

A bonus is taxed as ordinary pay. What you keep depends on which band the extra money lands in, so the same £5,000 bonus is worth very different amounts to different earners.

Tax year 2026/27 · Estimates, not personal tax advice

£
£

Bonus after deductions

£3,600

You keep 72% of your £5,000 bonus
Gross bonus£5,000.00
Extra Income Tax−£1,000.00
Extra National Insurance−£400.00
Bonus you keep£3,600.00

Annual view. The payslip in the bonus month may show more tax, which cumulative PAYE usually corrects later in the year.

Rates and rules used

Tax year 2026/27

Default year 2026/27 (6 April to 5 April). 2025/26 and 2024/25 figures are kept for comparison where the calculator offers a year choice.

Independent site, not affiliated with HMRC. Always check GOV.UK for the latest figures.

How this calculation works

  1. 01Calculate tax and NI on your salary alone.
  2. 02Recalculate with the bonus added.
  3. 03The difference is what the bonus costs in deductions.

Real payroll can differ because tax and NI are worked out per pay period, and your tax code may include adjustments HMRC hasn't told you about. See our methodology.

Why bonuses look over-taxed

In the month you're paid, PAYE can push part of the bonus into a higher band for that month. Over the full year, cumulative PAYE usually sorts this out. What doesn't wash out is crossing a real annual threshold, such as £50,270 or £100,000.

Understanding your bonus tax calculator result

The result compares take-home pay before and after adding the bonus. The difference is the estimated cash value of the bonus after marginal tax, NI and any selected loan deduction.

Deciding whether to sacrifice a bonus

Scenario: Enter normal salary and the expected bonus. Note the net bonus, then compare it with a pension sacrifice offered by the employer.

How to use the result: The cash result helps value the immediate payment; the pension comparison shows how much more could reach retirement savings. Consider access to the money as well as tax.

Details to check before relying on the estimate

  • A single bonus payslip can differ from the annual estimate.
  • Crossing an annual band or allowance boundary has a lasting effect.
  • Commission and bonuses are both treated as employment income.

Putting the estimate into perspective

Keep the bonus estimate out of your recurring monthly budget until its amount and payment are confirmed. An annual comparison explains the overall change, not necessarily the deduction on the bonus payslip.

Frequently asked questions

Is a bonus taxed at a higher rate?

No special rate applies. It's added to your pay and taxed at your marginal rate, which may be higher than the rate on the rest of your salary.

Check it on GOV.UK: Income Tax rates and allowances (opens GOV.UK in a new tab)

Can I put my bonus into my pension?

Many employers offer bonus sacrifice, which saves tax and NI. It's especially useful if the bonus would take you over £100,000.

Check it on GOV.UK: Tax on your private pension (opens GOV.UK in a new tab)

Why does my bonus look smaller on the payslip than I expected?

A bonus is added to your income for the tax year, so part of it may fall into a higher band. National Insurance is also charged on the month's pay including the bonus.

Check it on GOV.UK: National Insurance rates and category letters (opens GOV.UK in a new tab)

Can I reduce tax on a bonus?

Some employers allow part of a bonus to be paid into a pension as a contribution. Ask your payroll team, because the rules depend on your scheme and pension allowance.

Check it on GOV.UK: Tax on your private pension (opens GOV.UK in a new tab)

Related calculators

Related guides

  • How Bonuses Are Taxed — How UK bonuses are taxed through PAYE, why the payslip looks heavy, and how sacrificing a bonus into a pension works.
  • Salary Sacrifice Explained — How salary sacrifice works for pensions, electric cars and cycle schemes, how much tax and NI you save, and the downsides to check.