Bonus Tax Calculator
How much of your bonus you keepRuns in your browser
| Normal month | Bonus month | Difference | |
|---|---|---|---|
| Gross pay | £3,333.33 | £8,333.33 | £5,000.00 |
| Income tax | £457.17 | £1,457.17 | £1,000.00 |
| National Insurance | £182.87 | £334.22 | £151.35 |
| Student loans | £0.00 | £0.00 | £0.00 |
| Take-home | £2,693.29 | £6,541.94 | £3,848.65 |
Over the whole tax year the bonus adds £3,600.00 to your take-home. If that differs from the payslip figure, payroll evens it out in later months on a cumulative tax code (it can't for NI, which is worked out month by month).
These are estimates based on 2026/27 rates and the inputs you give. Your actual position can differ (other income, benefits in kind, tax code changes, scheme rules). This is not financial or tax advice.
How it works
Worked example
Input: £30,000 salary, £5,000 bonus paid in September (month 6), England.
- Normal month: £2,500 gross, £290.50 tax, £116.20 NI, £2,093.30 take-home.
- Bonus month: £7,500 gross, £1,290.50 tax, £317.55 NI, £5,891.95 take-home.
Result: You keep £3,798.65 of the £5,000 bonus (76%).
Limits
- Assumes PAYE employment for the whole 2026/27 tax year with the standard 1257L tax code unless stated.
- Pension contributions on the bonus and benefits in kind are not included.
Sources
- HMRC – Rates and thresholds for employers 2026 to 2027
- GOV.UK – Income Tax rates and Personal Allowances
- GOV.UK – Scottish Income Tax
- GOV.UK – National Insurance rates and categories
- GOV.UK – Repaying your student loan: what you pay
- GOV.UK – Tax on your private pension contributions (tax relief)
- GOV.UK – Workplace pensions: what you, your employer and the government pay
- GOV.UK – Tax codes
How to use
- 1Enter your annual salary and the gross bonus.
- 2Pick the month the bonus is paid.
- 3Set your region and student loan.
- 4Compare a normal payslip with the bonus-month payslip.
FAQ
Is a bonus taxed at a higher rate?
No special rate applies. A bonus is added to your pay and taxed at your normal marginal rates, but because it lands in one month, part of it can fall into a higher band for that month. On a cumulative tax code, the year-to-date calculation usually smooths this out.
Why is so much NI taken from my bonus?
NI is worked out on each pay period separately. In a month with a big bonus, pay above £4,189.17 (the monthly upper earnings limit) is charged at 2%, but pay below it is charged at 8%.
Can I avoid tax on a bonus?
Some employers let you sacrifice a bonus into your pension, which saves income tax and NI. Ask your employer whether bonus sacrifice is available.