Bonus Tax Calculator UK 2026/27
See exactly how much income tax, National Insurance, and student loan you'll pay on your bonus — plus model pension sacrifice to reduce your tax bill.
Bonus Tax Calculator
Estimate the tax on your bonus for the 2026/27 tax year.
Bonus Breakdown
An estimate of what you'll take home from your bonus.
Take-Home From Bonus
£5,837.80
Gross Bonus
£10,000.00
Income Tax
-£3,946.00
National Insurance
-£216.20
Total Deductions
-£4,162.20
Income Tax Band Breakdown
| Band | Taxed | Tax Paid |
|---|---|---|
| Income Tax Slice | £10,000 | £3,946 |
Tax Tips & Updates
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Net Bonus
£5,837.80
How Your Bonus is Taxed
Bonuses are taxed as regular income under PAYE — but because your salary uses up the lower bands first, the effective rate on your bonus is often surprisingly high.
Income Tax on Bonuses
Your bonus is added to your total annual income.
Your bonus isn't taxed separately — it's stacked on top of your salary, and the total determines which tax bands apply. If your salary has already filled the basic rate band, your entire bonus may be taxed at 40% or 45%.
This can mean that even a modest bonus crosses a band boundary, with part taxed at 20% and the rest at 40%. Our calculator's tax band table shows the exact split.
National Insurance on Bonuses
Bonuses are also subject to NI contributions.
NI is calculated per pay period. When your bonus arrives in the same month as your salary, your combined pay for that month is higher, increasing your NI bill for that period.
The rate is 8% on earnings between £12,570 and £50,270, and 2% above that. Pension salary sacrifice is the only way to avoid NI on your bonus.
Worked Examples
Real-world scenarios showing how different income levels affect your bonus take-home.
Basic Rate Taxpayer
Most of the bonus falls in the 20% basic rate band, plus 8% NI.
Higher Rate — Band Crossing
The bonus straddles the £50,270 threshold — some taxed at 20%, some at 40%, plus NI.
Additional Rate + PA Taper
Income crosses £125,140, losing the Personal Allowance entirely — effective rate hits ~60%+.
How to Reduce Tax on Your Bonus
Legitimate strategies to keep more of your bonus.
Pension Sacrifice
Redirect all or part of your bonus directly into your pension. Pension salary sacrifice avoids both income tax and NI — the most powerful tax reduction available. Use the slider in our calculator above to model different amounts.
Avoid the 60% Trap
If your salary + bonus exceeds £100,000, you enter the Personal Allowance taper zone. Consider pension sacrifice to bring your income below £100,000 and reclaim your full £12,570 allowance.
Charitable Giving (Gift Aid)
Donating to charity via Gift Aid extends your basic rate band. For each £80 donated, the charity claims £20 from HMRC — and if you're a higher-rate taxpayer, you can claim the additional 20% back as a tax reduction.
Salary Sacrifice Benefits
Employers often offer salary sacrifice schemes for cycle-to-work, electric cars, or childcare vouchers. These reduce your gross salary (and therefore your taxable income) before the bonus is considered.
2026/27 Income Tax Bands
Current tax rates used in our calculations.
England, Wales & Northern Ireland
| Band | Income | Tax Rate | NI Rate |
|---|---|---|---|
| Personal Allowance | Up to £12,570 | 0% | — |
| Basic Rate | £12,571 – £50,270 | 20% | 8% |
| Higher Rate | £50,271 – £125,140 | 40% | 2% |
| Additional Rate | Over £125,140 | 45% | 2% |
Scotland
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 – £15,397 | 19% |
| Basic Rate | £15,398 – £26,561 | 20% |
| Intermediate Rate | £26,562 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
Frequently Asked Questions
Are bonuses taxed at a higher rate in the UK?
Can I put my bonus into my pension to avoid tax?
Does my bonus affect my Personal Allowance?
What is the 60% tax trap?
How does National Insurance on bonuses work?
Can I split my bonus across two tax years?
Is there anything else deducted from my bonus besides tax?
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