Bonus Tax Calculator UK

A bonus is taxed in the same way as regular salary — it is added to your gross pay for that period and taxed through PAYE at your marginal rate. There is no separate 'bonus tax rate', but because a bonus often pushes your monthly pay higher, it can be taxed at a higher rate for that pay period than your normal salary.

Your bonus is typically added to your salary for that single pay period, which can push you into a higher tax bracket for that month even if your annual salary wouldn't normally reach it. HMRC's PAYE system assumes this higher monthly amount continues all year, so more tax is withheld than may ultimately be due. Often you receive a small tax refund through later pay periods or after the tax year ends if too much was deducted.

Yes. National Insurance is charged on bonus payments in the same way as regular salary — 8% on the portion of your combined pay between £12,570 and £50,270 (annualised), and 2% above that, for the pay period in which the bonus is received.

Yes — the most common method is asking your employer to pay some or all of your bonus directly into your pension via salary sacrifice. This avoids both Income Tax and National Insurance on the sacrificed portion, meaning more of your bonus reaches your pension pot instead of being taxed.

Often, yes. If your bonus pushes you into a higher tax band for one pay period but your total annual income doesn't justify that rate, PAYE usually self-corrects in later pay periods, or you may be due a refund after the tax year ends. HMRC's cumulative PAYE system generally balances this out over the year.

This depends on your salary, the bonus amount, and where the combined total falls across the tax bands. Use the calculator above to enter your salary and bonus amount and see your estimated net bonus after Income Tax and National Insurance.