Bonus tax calculator: how much tax will I pay on my bonus?
Enter your salary and bonus to see the Income Tax, National Insurance and student loan taken from it, how much you keep, and roughly what your bonus payslip will look like. Uses the 2026 to 2027 UK rates, including Scotland. It's free, and nothing you type leaves your browser.
Want your whole pay rather than just the bonus? Use the take-home pay calculator, look up a salary in the salary after tax tables, or check your code with the tax code checker.
How tax on a bonus works
- A bonus is just more pay. There's no special bonus tax rate. Your employer adds the bonus to that payday's pay and takes Income Tax, National Insurance and any student loan repayments through PAYE.
- It's taxed at your top rate. Because your salary has usually already used your Personal Allowance and some of the basic rate band, the bonus sits on top. For 2026 to 2027 (England, Wales and Northern Ireland) the basic rate is 20% up to £50,270, the higher rate is 40%, and the additional rate is 45% over £125,140. Scotland has its own rates.
- Income Tax evens out, mostly. On a normal tax code, tax is worked out on your total pay so far in the tax year, so a big month is balanced by the others. On an emergency code (W1, M1 or X) each payday is taxed on its own, which can mean too much tax. See emergency tax codes and the tax code checker.
- National Insurance and student loan don't. They're worked out on each payday's pay. For 2026 to 2027 employee National Insurance is 8% on pay between £1,048 and £4,189 a month and 2% above that. Student loan repayments start once that month's pay is over the monthly threshold, though you can ask for a refund if your income for the whole year ends up under the yearly threshold.
- Watch £60,000 and £100,000. These are based on adjusted net income (pay less some pension contributions). Over £60,000 the High Income Child Benefit Charge starts, and over £100,000 your Personal Allowance starts to shrink, giving an effective 60% Income Tax rate up to £125,140.
The calculator works out the yearly difference with the same sums as our take-home pay calculator: your pay for the year with the bonus, minus your pay without it. It also shows a rough version of the payslip you get the bonus in.
Worked example (made-up figures)
Someone in England earns a salary of £45,000 and gets a £10,000 bonus in their December payslip. They're paid monthly, on tax code 1257L, with no student loan or pension.
| Without the bonus | With the bonus | Difference | |
|---|---|---|---|
| Pay for the year | £45,000.00 | £55,000.00 | £10,000.00 |
| Income Tax | £6,486.00 | £9,432.00 | £2,946.00 |
| National Insurance | £2,594.40 | £3,110.60 | £516.20 |
| Take-home pay | £35,919.60 | £42,457.40 | £6,537.80 |
Over the year they keep £6,537.80 of the bonus, about 65.4%. The bonus takes them from £45,000 to £55,000, so £5,270 of it is taxed at 20% and £4,730 at 40%.
In the December payslip itself, Income Tax on the bonus is about £3,209.50, because nine months of allowance and bands are used up by then. The extra £263.50 is balanced out over January to March. National Insurance on the bonus in December is £226.34: their normal monthly pay of £3,750 is under £4,189, so only £439 of the bonus is at 8% and the rest at 2%. That doesn't even out later, so for someone paid monthly the bonus actually costs them less National Insurance than the yearly figure of £516.20 suggests.
These are made-up figures to show how the sums work, not a real person.
Frequently asked questions
How much tax will I pay on my bonus?
A bonus is taxed as earnings, the same as your salary. It's added to your pay for the year, so it's taxed at your top rate of Income Tax, plus employee National Insurance and any student loan repayments. For 2026 to 2027 in England, Wales and Northern Ireland that's usually 20% tax and 8% National Insurance on a bonus that stays in the basic rate band, and 40% tax and 2% National Insurance once your pay is over £50,270. In Scotland the Scottish Income Tax rates apply instead.
Why was so much tax taken from my bonus payslip?
Usually, your tax is worked out on your total income so far in the tax year. A big bonus in one month can push that month's pay into a higher band, but on a normal tax code it evens out over your later payslips. If you're on an emergency tax code (W1, M1 or X, or NONCUM on your payslip), tax is worked out on that month's pay only, as if you were paid that much every month, so you could pay too much. HMRC refunds overpaid tax through your pay once your code is updated, or writes to you after the tax year ends.
Do I pay National Insurance on a bonus?
Yes. Employee National Insurance is taken from bonuses like other pay. For 2026 to 2027 you pay 8% on pay between £1,048 and £4,189 a month and 2% on pay above £4,189 a month. Because it's worked out on each payday's pay, it doesn't even out over the year in the way Income Tax does.
Do I repay my student loan from a bonus?
Yes, student loan repayments count bonuses and overtime. You'll make a repayment if your pay goes over the weekly or monthly threshold for your plan, for example when you're paid a bonus. If your income for the whole tax year is below the yearly threshold for your plan, you can ask for a refund after the tax year ends.
What happens if my bonus takes me over £100,000?
Your Personal Allowance goes down by £1 for every £2 of adjusted net income over £100,000, and is zero at £125,140. On income in that range you pay an effective Income Tax rate of 60%. Payroll on the standard tax code doesn't always collect this straight away, so HMRC may change your tax code or ask for it after the tax year ends. Pension contributions lower your adjusted net income.
Can I put my bonus into my pension instead?
Some employers let you give up a bonus in return for an employer pension contribution, known as salary sacrifice. HMRC's own example is a £5,000 bonus sacrificed for a £5,000 employer pension contribution, with no Income Tax or National Insurance charge to the employee. It has to be agreed with your employer as a change to your contract and can't be applied retrospectively, and it can affect things worked out from your pay. Ask your employer whether they offer it. This calculator doesn't model salary sacrifice.
Can a bonus affect Child Benefit?
Yes, if you or your partner get Child Benefit and yours is the higher income. The High Income Child Benefit Charge takes back 1% of the Child Benefit for every £200 of adjusted net income over £60,000. If your adjusted net income is over £80,000 you pay it all back.
Is a bonus taxed differently in Scotland?
Bonuses are taxed at the Scottish Income Tax rates if you live in Scotland: 19%, 20%, 21%, 42%, 45% and 48% for 2026 to 2027. National Insurance and student loan repayments are the same across the UK. Choose Scotland in the calculator to use the Scottish rates.
More pay tools
See your full pay with the take-home pay calculator, compare salaries in the salary after tax tables, decode your payslip code with the tax code checker, read the £100,000 tax trap guide and the Child Benefit charge guide, or browse every pay and tax calculator on the Tax & Pay page.
Sources
GOV.UK: Income Tax rates and Personal Allowances, Income Tax in Scotland, National Insurance: how much you pay, Rates and thresholds for employers 2026 to 2027, Repaying your student loan: what you pay, Emergency tax codes, If you've paid too much or too little tax, Adjusted net income, High Income Child Benefit Charge, Salary sacrifice and the effects on PAYE. All checked on 24 October 2026. General guidance only, not tax or financial advice. Your payslip can differ because of your tax code, pay dates, benefits in kind and how your employer runs payroll.