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.

PAYE (Pay As You Earn) is the UK system employers use to deduct Income Tax and National Insurance directly from your salary before you receive it. Your employer calculates these deductions each pay period using your tax code and sends the tax to HMRC on your behalf.

The Personal Allowance is the amount of income you can earn each tax year before paying any Income Tax. For 2026/27, the standard Personal Allowance is £12,570. It is gradually withdrawn for incomes above £100,000 and reaches zero at £125,140.

Weekly take-home pay is calculated by dividing your annual net income by 52. Daily take-home pay typically divides annual net income by 260 (accounting for weekends), reflecting a standard 5-day working week. Use our Payslip Calculator to check your exact figures.