Bonus Payment Tax Calculator 2026/27: What You Keep From Your Bonus
Use this bonus payment tax calculator to see how much of a bonus you keep after Income Tax, National Insurance, pension and student loan deductions, and how your bonus month payslip compares with a normal month.
- ✓ 2026/27 GOV.UK rates, including Scotland
- ✓ NI and loans worked out per pay period
- ✓ Nothing you type leaves your browser
Updated 7 November 2026 · Written by Swapan Jr · Reviewed by Shamayun Chowdhury
Bonus payment tax calculator 2026/27
For PAYE employees paid monthly. Results update as you type and stay in your browser.
£0
of your bonus you keep after deductions
Uses GOV.UK 2026/27 rates and tax code 1257L. NI and student loans are worked out on the month the bonus is paid. A guide, not a payslip.
%
Basic rate tax
%
Higher rate tax
%
Main NI rate
%
NI above £4,189 a month
How much tax do you pay on a bonus payment?
A bonus payment is taxed like the rest of your pay, at your top rate of Income Tax plus National Insurance. For a basic rate taxpayer that usually means 20% tax and 8% NI, so about 72p of each bonus pound is kept. Above £50,270 the bonus is taxed at 40% plus 2% NI, and between £100,000 and £125,140 the lost Personal Allowance pushes the effective rate to about 62%. Student loan repayments and pension contributions can take more on top.
How much of a bonus do you keep on common salaries?
England, Wales and Northern Ireland figures for 2026/27, paid monthly, with no pension or student loan. Press a button to load them into the calculator.
£1,000 bonus
On a £35,000 salary
£720
kept after deductions
- ✓ Income Tax at 20%: £200
- ✓ NI: £80
- ✓ You keep 72%
- ✓ Basic rate throughout
£5,000 bonus
On a £35,000 salary
£3,824
kept after deductions
- ✓ Income Tax at 20%: £1,000
- ✓ NI in bonus month: £176
- ✓ You keep 76%
- ✓ Bonus month pay: £6,217
£10,000 bonus
On a £45,000 salary
£6,828
kept after deductions
- ✓ £5,270 taxed at 20%
- ✓ £4,730 taxed at 40%
- ✓ NI: £226
- ✓ You keep 68%
£5,000 bonus
On a £60,000 salary
£2,900
kept after deductions
- ✓ Income Tax at 40%: £2,000
- ✓ NI at 2%: £100
- ✓ You keep 58%
- ✓ Check Child Benefit
£10,000 bonus
On a £95,000 salary
£4,800
kept after deductions
- ✓ Income Tax: £5,000
- ✓ £5,000 of it in the taper band
- ✓ NI at 2%: £200
- ✓ You keep 48%
£10,000 bonus
On a £130,000 salary
£5,300
kept after deductions
- ✓ Income Tax at 45%: £4,500
- ✓ NI at 2%: £200
- ✓ You keep 53%
- ✓ No Personal Allowance left
Where does a £5,000 bonus go?
An employee on £35,000 in England receives a £5,000 bonus in 2026/27.
%
You keep
%
Income Tax
%
National Insurance
The whole bonus stays inside the basic rate band, so Income Tax is £1,000. NI is worked out on the month’s pay: £7,917 including the bonus, so most of the bonus falls above the £4,189 monthly upper limit and is charged at 2% rather than 8%. That makes NI on this bonus about £176, and you keep about £3,824.
What tax rates apply to a bonus in 2026/27?
These are the GOV.UK rates and thresholds the calculator uses for the tax year from 6 April 2026.
| Band and rate | Total yearly pay |
|---|---|
| Personal Allowance 0% | Up to £12,570 |
| Basic rate 20% | £12,571 to £50,270 |
| Higher rate 40% | £50,271 to £125,140 |
| Additional rate 45% | Over £125,140 |
| Band and rate | Total yearly pay |
|---|---|
| Starter 19% | £12,571 to £16,537 |
| Basic 20% | £16,538 to £29,526 |
| Intermediate 21% | £29,527 to £43,662 |
| Higher 42% | £43,663 to £75,000 |
| Advanced 45% | £75,001 to £125,140 |
| Top 48% | Over £125,140 |
| Monthly pay | Employee NI |
|---|---|
| Up to £1,048 | 0% |
| £1,048 to £4,189 | 8% |
| Over £4,189 | 2% |
| Plan and rate | Monthly threshold |
|---|---|
| Plan 1 at 9% | £2,241.66 |
| Plan 2 at 9% | £2,448.75 |
| Plan 4 at 9% | £2,816.25 |
| Plan 5 at 9% | £2,083.33 |
| Postgraduate at 6% | £1,750 |
Total deduction on each bonus pound
Income Tax plus employee NI, England, Wales and Northern Ireland, before any student loan.
- Basic rate band: 28% 28%
- Higher rate band: 42% 42%
- £100,000 to £125,140: 62% 62%
- Above £125,140: 47% 47%
How is tax on a bonus payment worked out?
- Add the bonus to your yearly pay. HMRC treats it as normal earnings for the tax year.
- Find your top rate. The bonus is taxed at the rate of the band it lands in, and part can spill into the next band.
- Work out NI for that month. The bonus is added to the month’s pay, and the monthly £1,048 and £4,189 thresholds apply.
- Take off student loan and pension. Loans use the monthly threshold for your plan; a pension percentage also applies to the bonus.
- What is left is your bonus after tax. Tax evens out over the year if your tax code is right.
Worked example
£5,000 bonus on a £35,000 salary
£3,824
bonus kept after deductions
- ✓ Yearly pay now £40,000
- ✓ Tax at 20%: £1,000
- ✓ NI in bonus month: £176
- ✓ Normal month pay: £2,393
Should you take a bonus as cash or put it in your pension?
Many employers let you swap all or part of a bonus for a pension contribution before it is paid. GOV.UK confirms a bonus sacrificed this way has no Income Tax or NI charge.
Take the bonus as cash
£5,000 bonus on a £35,000 salary
£3,824
reaches your bank account
- ✓ Income Tax: £1,000
- ✓ NI: £176
- ✓ Money available now
- ✓ Counts towards £60,000 and £100,000
Sacrifice it into a pension
Same £5,000 bonus
£5,000
goes into your pension
- ✓ No Income Tax or employee NI
- ✓ Agreement needed before payment
- ✓ Locked away until pension age
- ✓ NI-free amount capped at £2,000 from April 2029 (planned)
Which pay levels make a bonus cost more?
£50,270: higher rate
Any bonus above £50,270 of total pay is taxed at 40% instead of 20% in England, Wales and Northern Ireland. In Scotland, 42% starts above £43,663.
£60,000: Child Benefit
If you or your partner claim Child Benefit, income over £60,000 brings the High Income Child Benefit Charge: 1% of the benefit for every £200, all of it by £80,000.
£100,000: allowance taper
Above £100,000 you lose £1 of Personal Allowance for every £2. A bonus in this band costs about 62% in tax and NI until £125,140.
Why does my bonus month payslip look so heavy?
NI is worked out on the month, not the year
HMRC guidance says a bonus is part of gross pay for the earnings period in which it is paid. Because NI drops to 2% above £4,189 a month, a large bonus can actually cost less NI than the same money spread across the year.
Student loans use the monthly threshold
A bonus month can push pay over the monthly threshold even if your yearly income is below it. You can ask the Student Loans Company for a refund after the tax year ends.
Emergency or Month 1 tax codes
Codes ending in W1, M1 or X ignore the pay and tax earlier in the year, so a bonus can be taxed as if you earned that much every month. HMRC usually corrects this once your code is updated.
Cumulative PAYE evens things out
With a normal code, PAYE looks at your pay and tax so far this year. The extra tax on a bonus is roughly what the bonus adds to your yearly bill, not a penalty.
What mistakes do people make with bonus tax?
Thinking the whole salary moves to 40%
Only the part of your pay above £50,270 is taxed at 40%. A bonus that crosses the line never reduces the tax-free or 20% part of your pay.
Forgetting pension contributions
If your pension is a percentage of pay, it usually applies to the bonus too, which lowers the cash you receive but also lowers the tax.
Missing the Child Benefit charge
A bonus that takes income over £60,000 can trigger the High Income Child Benefit Charge, which is collected separately from PAYE.
Asking for sacrifice too late
A bonus sacrifice must be agreed before the bonus is paid and cannot be applied backwards.
Frequently asked questions
How much tax will I pay on my bonus in the UK?
A bonus is taxed as normal pay at your highest rate: 20% in the basic rate band, 40% in the higher rate band and 45% above £125,140, plus National Insurance of 8% or 2%. On a £35,000 salary, a £5,000 bonus leaves about £3,824 after £1,000 tax and £176 NI.
Is a bonus taxed at 40%?
Only the part that falls above £50,270 of total pay (England, Wales and Northern Ireland). If your salary plus bonus stays under that, the bonus is taxed at 20%. In Scotland the 42% higher rate starts above £43,662.
Why was my bonus taxed so much?
In the bonus month, payroll may deduct more than you expect because NI and student loans are worked out on that month’s pay, and an emergency or Month 1 tax code ignores the allowance you have not used yet. Under a normal cumulative code, Income Tax evens out over the year.
Do you pay National Insurance on a bonus?
Yes. Bonuses are part of gross pay for the pay period in which they are paid, so employee NI applies at 8% up to £4,189 a month and 2% above that. Employees over State Pension age pay no employee NI.
Will I get tax back on my bonus?
Not usually, if your tax code is right, because PAYE spreads your allowance across the year. You may get a refund if you were on an emergency code, left the job, or if a student loan was taken in the bonus month even though your yearly income stayed below the threshold.
Can I put my bonus into my pension to avoid tax?
If your employer offers bonus sacrifice, you can give up the bonus in return for a pension contribution, so no Income Tax or employee NI is due on it. The agreement must be made before the bonus is paid. From 6 April 2029 the government plans to limit NI-free sacrifice to £2,000 a year.
Does a bonus affect student loan repayments?
Yes. Repayments are worked out on each pay period, so a large bonus month can trigger a deduction of 9% (6% for a Postgraduate Loan) on pay above the monthly threshold, even if your yearly income ends up below it. You can then ask for a refund.
Does a bonus affect Child Benefit?
It can. If your adjusted net income goes over £60,000, the High Income Child Benefit Charge claws back 1% of the benefit for every £200 above that, and all of it at £80,000. Paying the bonus into a pension can reduce adjusted net income.
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About this page
Written by Swapan Jr, content writer at Merin Tax Return.
Reviewed by Shamayun Chowdhury, Senior Accountant.
Last updated 7 November 2026. Figures cover the 2026/27 tax year and were checked against GOV.UK. This page gives general information, not personal tax advice.
Sources
- GOV.UK: Rates and thresholds for employers 2026 to 2027
- GOV.UK: Scottish Income Tax
- GOV.UK: Bonuses, what to report and pay
- HMRC manual NIM08600: bonuses and earnings periods
- HMRC manual PAYE11090: cumulative tax codes
- GOV.UK: Repaying your student loan
- GOV.UK: Salary sacrifice and PAYE
- GOV.UK: Salary sacrifice changes from April 2029
- GOV.UK: High Income Child Benefit Charge threshold