Bonus tax calculator 2026/27
A bonus is taxed as normal earnings on top of your salary — which means it is taxed at your highest marginal rate. Enter your salary and bonus to see exactly how much of the bonus you keep after Income Tax and National Insurance.
Calculate tax on your bonus →How bonuses are taxed in the UK
There is no special "bonus tax". A bonus is added to your pay in the month it is received and taxed through PAYE like ordinary salary. Because it sits on top of your existing income, it is taxed at your marginal rate — 20%, 40% or 45% Income Tax plus National Insurance.
In the month of payment, PAYE can temporarily over-tax a large bonus (it annualises that month's income); this usually corrects automatically in later payslips. Salary-sacrificing a bonus into your pension can avoid tax and NI on it entirely.
Frequently asked questions
How much tax will I pay on my bonus?
Your bonus is taxed at your marginal rate on top of your salary: roughly 28% total deductions in the basic-rate band (20% tax + 8% NI), 42% in the higher-rate band (40% + 2%), and more if it pushes you over £100,000 where the Personal Allowance tapers.
Why was my bonus taxed so heavily this month?
PAYE annualises each month's pay, so a one-off bonus can be taxed as if you earned that amount every month. The overpayment is normally refunded automatically through later payslips in the same tax year.
Can I avoid tax on a bonus?
You can often sacrifice some or all of a bonus into your pension before it is paid, avoiding Income Tax and National Insurance on the sacrificed amount. Ask your employer about bonus sacrifice before the payment date.