UK Bonus Tax Calculator 2026–2027
Find out exactly how much of your bonus you will actually keep after income tax and National Insurance.
Bonus (Gross)
£5,000
Tax on Bonus
£1,000
NI on Bonus
£400
Bonus Take-Home
£3,600
Effective Bonus Rate
28.0%
Marginal Tax Rate
20.0%
Frequently Asked Questions
How is a bonus taxed in the UK?
Bonuses are taxed as regular employment income via PAYE. Your employer adds the bonus to your salary in the pay period it is paid, calculates the tax on the total, and deducts the tax already paid on your regular salary. This means a bonus can temporarily push you into a higher tax band for that pay period.
Do I pay National Insurance on a bonus?
Yes. Bonuses are subject to Class 1 employee NI at the same rates as regular pay: 8% on earnings between £12,570 and £50,270 per year, and 2% above that.
Can I reduce tax on my bonus?
Yes. If you arrange for your bonus to be paid as a salary sacrifice pension contribution, it avoids both income tax and NI entirely (subject to pension annual allowance limits of £60,000). This is one of the most tax-efficient ways to receive a bonus.
Is a bonus taxed at a flat rate?
No. There is no special "bonus tax rate" in the UK. Your bonus is taxed at your marginal rate — the rate that applies to the top slice of your total income in that tax year.