How much tax will I pay on my bonus?

A bonus is taxed as part of your pay for the year, at your highest rate. On a £30,000 salary a £5,000 bonus leaves you £3,600 after tax and National Insurance (72%).

Why was so much tax taken from my bonus payslip?

Payroll treats your bonus month as if you were paid that much every month. More of it falls into the higher-rate band for that month, and National Insurance is worked out on the month alone. Income tax usually evens out over the year; National Insurance does not.

Can I pay my bonus into my pension?

Many employers let you sacrifice a bonus into your pension. You then pay no income tax or National Insurance on it, and if it brings your income below £100,000 you can keep your Personal Allowance too.

Does the month I’m paid make a difference?

For income tax over a full year, usually not. But the payslip in the bonus month looks different depending on the month, because tax codes work cumulatively from April. Compare paying the bonus in April and March with the month selector.

Bonus Tax Calculator 2026/27

See how much of your bonus you keep, and what your payslip will look like in the bonus month.

How it works

A bonus isn’t taxed at a special rate. It’s added to your pay for the tax year and taxed like any other earnings, at your highest rate. What can be confusing is the payslip: the month you get a bonus often shows much more tax than you expected. This calculator shows both views.

Over the whole year

The annual figure compares your take-home pay for the year with and without the bonus. A basic-rate taxpayer pays 20% income tax and 8% National Insurance on a bonus; once your total pay is over £50,270 the extra is taxed at 40% plus 2% National Insurance. If the bonus takes you over £100,000, you also start to lose your Personal Allowance.

On your payslip

Most employees are paid monthly on a cumulative tax code. Each month payroll works out the tax due on your pay so far this tax year, using one-twelfth of your allowance and of each tax band for every month that has passed, and deducts the difference from what you’ve already paid. A big bonus early in the tax year can push part of that month’s pay into the higher-rate band for the month. Later in the year, more band has built up, so the same bonus may be taxed mostly at the basic rate.

National Insurance is different: it is worked out on each month’s pay on its own, using the monthly thresholds of £1,048 and £4,189. Pay above £4,189 in a month attracts only 2%, so a large bonus month can actually mean less National Insurance than spreading the same pay out. Student loan repayments are also worked out on the month’s pay.

Paying a bonus into your pension

If your employer offers bonus sacrifice, you can pay some or all of a bonus straight into your pension. You pay no income tax or National Insurance on the sacrificed amount, which is especially valuable in the higher-rate band or the 60% trap.

Common surprises

The most common worry is that a bonus has been “taxed at 40%” or even more on the payslip. That is usually the monthly cumulative calculation at work rather than a mistake. If your total pay for the year stays in the basic-rate band, the extra tax taken in the bonus month is normally given back gradually in later months, because the tax code keeps recalculating your position for the year so far.

The other surprise is student loan. Repayments are worked out on each payday’s pay against the monthly threshold, so a bonus month can trigger a repayment even if your yearly pay is below the threshold. You can ask the Student Loans Company for a refund after the tax year if your income for the whole year was under the threshold.

Rates verified against HMRC on 5 October 2026.

Worked example

On a £30,000 salary, a £5,000 bonus adds £3,600 to your take-home pay over the year (72%).

Paid in April, the bonus month shows £1,952.66 income tax and £317.50 National Insurance, against £290.50 and £116.16 in a normal month. Paid in March, the tax in that month is £1,290.50, because a full year of basic-rate band has built up.

On £55,000, a £10,000 bonus leaves £5,800 (58%).

Bonus tax calculator

Bonus after tax