UK Bonus Tax & Take-Home Calculator

Your bonus is taxed at your marginal tax rate - the highest rate you pay on your income. This means if you're a basic rate taxpayer (20%), you'll pay 20% tax on your bonus. However, bonuses can push you into higher tax brackets. If your salary is £40,000 and you receive a £15,000 bonus, part of your bonus may be taxed at 40% (higher rate) once your total income exceeds £50,270. National Insurance also applies at 8% up to £50,270 and 2% above that threshold.

Yes, bonuses can push you into a higher tax bracket because they're added to your annual salary for tax purposes. For example, if you earn £45,000 and receive a £10,000 bonus, your total income of £55,000 means £4,730 will be taxed at the higher rate of 40%. This is why you might notice you take home less than expected from your bonus - the portion that exceeds the basic rate threshold (£50,270) is taxed at a higher rate.

Bonuses feel heavily taxed because: 1) They're taxed at your marginal rate (the highest rate you pay), 2) They can push you into higher tax brackets, 3) National Insurance applies on top of income tax, 4) Your personal allowance may be reduced if your total income exceeds £100,000, and 5) Student loan repayments are calculated on your total annual income including bonuses. The effective tax rate on a bonus can be 40-60% for higher earners, but remember - you're still taking home money you wouldn't have had otherwise.

To calculate your net bonus: 1) Add your bonus to your annual salary to get total income, 2) Calculate income tax on total income minus tax on salary alone - the difference is tax on your bonus, 3) Do the same for National Insurance (8% rate between £12,570-£50,270, then 2% above), 4) Add student loan repayments if applicable (9% above threshold), 5) Subtract pension contributions if you're sacrificing salary. Use our calculator above for an instant, accurate calculation that accounts for all deductions and tax brackets.

No, bonuses don't get taxed at a different rate than salary - they're simply added to your annual income and taxed accordingly. However, they may feel more heavily taxed because: 1) They're taxed at your marginal rate (the highest rate you pay), not your average rate, 2) They can push you into higher tax brackets, meaning part of your bonus is taxed at 40% or 45%, 3) Your monthly salary may be taxed assuming you earn that amount all year, but a bonus increases your actual annual income. The UK uses an annual tax system, so by year-end, your bonus and salary are taxed the same way based on your total income.

There's no separate 'bonus tax rate' in the UK. Bonuses are taxed as regular income at the standard rates: 20% (basic rate) on income between £12,571-£50,270, 40% (higher rate) on £50,271-£125,140, and 45% (additional rate) above £125,140. National Insurance adds 8% on earnings £12,571-£50,270 and 2% above. This means your effective tax rate on a bonus could be 28% (basic rate + NI) or 42% (higher rate + NI) depending on your total income. Scotland has different rates with more tax bands.

Yes! Pension contributions through salary sacrifice are one of the most effective ways to reduce tax on your bonus. If you contribute part of your bonus to your pension before tax, you'll reduce your taxable income. For example, if you're a higher rate taxpayer and put £5,000 of your bonus into your pension, you'll save £2,000 in income tax (40%) plus £400 in National Insurance (8%), giving you an effective 48% 'boost' to your pension. This works best for bonuses that push you into higher tax brackets.

National Insurance (NI) is calculated on your total annual earnings, including bonuses. For 2026/27, you pay 8% NI on earnings between £12,570 and £50,270, then 2% on anything above £50,270. If you're over state pension age (currently 66), you don't pay NI at all. Your employer typically spreads NI throughout the year, but if you receive a large bonus, you may pay the higher 8% rate on more of it if your total income stays under £50,270, or pay the reduced 2% rate on the portion above that threshold.

No, Christmas bonuses are taxed exactly the same as any other bonus or salary payment. Whether you receive your bonus at Christmas, as an annual performance bonus, or as commission, it's all treated as regular income and taxed at your marginal rate. The timing doesn't matter for annual tax purposes - HMRC looks at your total income for the tax year (April to April). However, the month you receive it might affect your monthly payslip due to how tax codes work throughout the year, but this evens out by year-end.

If your salary plus bonus exceeds £100,000, you'll start losing your personal allowance at a rate of £1 for every £2 earned above £100,000. This creates an effective tax rate of 60% on income between £100,000-£125,140 (40% income tax + 20% from losing the allowance, plus 2% NI). For example, if you earn £95,000 and get a £15,000 bonus, £10,000 of that bonus will be taxed at this punitive 60% rate. This is the highest effective tax rate in the UK system, making pension contributions particularly valuable at this income level.

On a £40,000 salary, a £5,000 bonus is taxed at 20% income tax (£1,000) plus 8% National Insurance (£400) — you keep about £3,600 (72%). If salary plus bonus exceeds £50,270, the slice above is taxed at 40% plus 2% NI instead. Enter your exact salary above for your figure.

No — a one-off bonus is PAYE income taxed at your marginal rate, exactly like salary. The catch: payroll may apply an emergency tax code that month, so the payslip looks worse than the annual reality. It reconciles by year-end (April–April). If the over-deduction persists, HMRC refunds it via your tax code or a P800 calculation.

At 40% income tax plus 2% National Insurance, a £10,000 bonus fully inside the higher-rate band loses about £4,200 — you keep roughly £5,800 (58%). Above £100,000 total income the personal-allowance taper pushes the effective rate toward 60%. Salary-sacrificing part of the bonus into pension avoids both.