Employees & PAYE
Bonus tax calculator
A bonus is taxed at your marginal rate — it stacks on top of the salary you already earn, so the tax bite is often far bigger than the 20% you might expect. Put in your salary and your bonus to see exactly what Income Tax, National Insurance and student loan come off, and how much actually lands in your account. 2026/27 rates, worked in your browser; nothing is sent anywhere.
Your salary and bonus
Rough figures are fine. This assumes a single job on the standard tax code (1257L-style Personal Allowance), England, Wales or Northern Ireland, and a cash bonus paid through payroll.
Why a bonus is taxed so heavily
Your bonus doesn't get its own tax-free allowance — it sits on top of your salary, so every pound is taxed at the highest rate your total income reaches. That's why a bonus can feel like it's taxed at 40%, 50% or even more:
- Income Tax. The bonus is taxed at your marginal band — 20% if you stay under £50,270, 40% once your salary plus bonus crosses it, and 45% above £125,140.
- National Insurance. Employee Class 1 NI is 8% between £12,570 and £50,270, then just 2% above £50,270. So a bonus that pushes you over £50,270 is taxed more on Income Tax but less on NI for the part above the line.
- The 60% trap. Between £100,000 and £125,140 your Personal Allowance is withdrawn by £1 for every £2 you earn, so a bonus in that band is effectively taxed at 60% Income Tax. A bonus that tips you over £100,000 can be the most expensive money you ever earn.
- Student loan. If you're repaying one, another 9% comes off the bonus above your plan threshold (6% for a Postgraduate Loan) — the calculator adds it in when you pick your plan.
Emergency tax on a one-off bonus
Because PAYE spreads your allowances evenly across the year, a large one-month bonus can be over-taxed at the time — payroll assumes you'll earn at that rate every month. It usually corrects itself automatically over the following pay packets, or through your tax code. This calculator shows the correct annual tax on the bonus, which is what you should end up paying once it settles.
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Common questions
How much tax will I pay on my bonus in 2026/27?
It depends on your salary, because a bonus is taxed at your marginal rate on top of it. On a £30,000 salary a £5,000 bonus is taxed at 20% Income Tax and 8% National Insurance, so you keep about £3,600. On a £60,000 salary the same bonus is taxed at 40% plus 2% NI, so you keep about £2,900. Enter your own figures above for the exact split.
Why does it feel like my bonus was taxed at 50% or more?
Two things stack up. Once your salary plus bonus is over £50,270 the bonus is taxed at 40% Income Tax, and if you also repay a student loan that's another 9%, which is close to 50% already. Between £100,000 and £125,140 the loss of your Personal Allowance pushes the effective Income Tax rate to 60%, so with a student loan a bonus in that band can lose almost 70%.
Is a bonus taxed differently from normal salary?
No — a cash bonus paid through payroll is taxed exactly like salary: Income Tax, National Insurance and any student loan. It only feels different because it all arrives in one month and is taxed at your top marginal rate, and because PAYE can briefly over-tax a one-off spike before correcting itself.
Can I avoid tax on my bonus by paying it into a pension?
Often, yes. If your employer offers bonus sacrifice, paying the bonus straight into your pension means it's never subject to Income Tax or National Insurance — which is especially powerful in the 40% and 60% bands. Our pension tax relief calculator and £100k tax trap tool show the effect.
Why was my first bonus payslip taxed even more than this?
PAYE assumes each month's pay repeats all year, so a big one-off bonus can be temporarily over-taxed — sometimes called emergency tax on a bonus. It normally corrects itself over the next month or two, or through an updated tax code, so the annual figure this calculator shows is what you should actually end up paying.
Do I need to file a Self Assessment tax return because of my bonus?
Not for the bonus itself — PAYE handles it. But you do need to file if your total income tops £150,000, or if you also have untaxed income such as freelancing over £1,000, rental income or dividends over £500. If that's you, our Tax Estimator stacks your salary, bonus and other income and works out the whole bill.
Bonus plus something on the side?
This page covers a cash bonus through PAYE. The moment you add untaxed income — a freelance side hustle, a rental, or dividends — HMRC wants a Self Assessment return, and your salary and bonus are only the first lines of it. The paid Self Assessment Tax Estimator stacks your wage, your bonus, your self-employment profit and your other income together and works out the whole bill, the Class 4 National Insurance and the monthly amount to set aside — so the January deadline holds no surprises.
- Self Assessment Tax Estimator 2026/27 — your complete bill, salary and bonus plus self-employment plus other income, with the set-aside and payment-on-account dates worked out for you.
- Freelance Day-Rate & Profit Calculator — work backwards from the take-home you need.
- Rental Property ROI & Yield Calculator — for anyone with a buy-to-let alongside the day job.
- Invoice Tracker & Log — paid, outstanding and overdue, automatically.
Excel and Google Sheets. Working formulas, not just formatting. Built and checked by us, with AI assistance, and every calculation verified.
Get the Tax Estimator — £9 →£9 on its own, or all four tools for £19, with a 14-day money-back guarantee.