UK Bonus Tax Calculator

Updated for tax year 2026/27 Last reviewed 10 August 2026 Salary & Tax

Bonuses are taxed as ordinary income on top of your salary, so your marginal rate decides how much you keep. Enter your salary and bonus to see the breakdown.

The calculator uses your marginal Income Tax and National Insurance rates for the tax year.

Your details

Used to work out your tax band

Results

Gross bonus
£5,000.00
Income Tax on bonus
£1,000.00
National Insurance on bonus
£400.00
Total deductions
£1,400.00
You receive from your bonus
£3,600.00
72% of the gross bonus

How the calculation works

We believe numbers should be transparent. Here is the formula behind this calculator.

Net bonus = bonus − (marginal Income Tax + marginal NI on the bonus)

Worked example

Worked example: a £5,000 bonus on a £40,000 salary

Salary: £40,000. Bonus: £5,000.
The bonus sits in the basic band: tax at 20% = £1,000, NI at 8% = £400.
You receive £5,000 − £1,400 = £3,600 of your bonus.

Examples at common levels

See how the numbers change at typical input levels, using the updated for tax year 2026/27 rates.

Scenario Gross bonusIncome Tax on bonusNational Insurance on bonusTotal deductionsYou receive from your bonus
£5,000 bonus on £40,000 salary
Basic rate: 20% tax + 8% NI
£5,000.00£1,000.00£400.00£1,400.00£3,600.00
£10,000 bonus on £55,000 salary
Part of the bonus in the higher band
£10,000.00£4,000.00£200.00£4,200.00£5,800.00
£2,000 bonus on £50,000 salary
Bonus crosses the £50,270 threshold
£2,000.00£746.00£56.20£802.20£1,197.80
£10,000 bonus on £100,000 salary
Personal Allowance taper
£10,000.00£6,000.00£200.00£6,200.00£3,800.00

Important assumptions

  • Bonuses are treated as ordinary income for Income Tax and NI.
  • Uses your marginal rate based on your annual salary and the bonus amount.
  • Student loan repayments are not deducted in this calculator.

Rates & official sources

Every calculation is based on the official rates and rules published by GOV.UK and HMRC.

Frequently asked questions

Why is so much tax taken from my bonus?

Bonuses are taxed at your marginal rate on top of your salary. If you are a basic-rate taxpayer, that is 20% plus 8% NI — but a bonus can also push you into the higher 40% band.

Can a bonus push me into a higher tax band?

Yes. If your salary plus bonus crosses £50,270, the part above the threshold is taxed at 40%. This calculator uses that exact split.

Is a bonus taxed differently to salary?

No. For Income Tax and NI it is simply extra earnings. The only difference is that it is usually paid as a lump sum in one pay period.

Related calculators

Related guides

New to the topic? Read a plain-English guide on salary & tax, with worked examples and tips.

These calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.