Bonus Tax Calculator

Calculate how much of your bonus you will take home after income tax and National Insurance deductions.

Last updated: April 2026 · Source: GOV.UK — Tax on bonuses

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Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Bonuses are taxed as part of your total earnings in the pay period they are received. Your employer adds the bonus to your regular pay and applies PAYE using the standard tax tables. This often pushes you into a higher marginal tax bracket for that period, making it appear heavily taxed, though the annual effect may be lower.

The deductions on a bonus include income tax at your marginal rate, employee National Insurance at 8% (or 2% above the Upper Earnings Limit) and any workplace pension contributions. If the bonus tips your income above £50,270, the portion above that threshold is taxed at 40% and NI drops to 2%.

This calculator adds your bonus to your annual salary to calculate the correct deductions. It shows the marginal rate applied to the bonus, the net bonus amount and a comparison showing your normal monthly pay versus the bonus month. Over the full year, HMRC's cumulative PAYE system ensures you pay the right total tax.

Example: £5,000 bonus on a £42,000 salary

  1. Total earnings in bonus year: £47,000
  2. Bonus falls within basic-rate band (under £50,270)
  3. Income tax on bonus: £5,000 × 20% = £1,000
  4. Employee NI on bonus: £5,000 × 8% = £400
  5. Pension (5%): £5,000 × 5% = £250
  6. Net bonus received: £5,000 − £1,650 = £3,350

Source: GOV.UK — Tax on bonuses

Frequently Asked Questions

What does the Bonus Tax Calculator do?
Calculate how much of your bonus you will take home after income tax and National Insurance deductions. All calculations are performed in your browser using official UK rates and thresholds.
Is this calculator based on 2025/26 rates?
Yes. This calculator uses the current 2025/26 UK tax year rates for income tax, National Insurance and other deductions, effective from 6 April 2025.
Does this include pension contributions?
This calculator can factor in workplace pension contributions. Under auto-enrolment, the minimum is 8% total (5% employee + 3% employer) of qualifying earnings.