Bonus Tax Calculator UK 2026/27
A £5,000 bonus on a £40,000 salary leaves you about £3,600.00 after tax and National Insurance in 2026/27: you keep 72% of it. There is no special bonus tax. It is taxed as pay, in the bands you are already in.
- Every rate links to its official source
- Checked against official examples on every build
- Rates reviewed 25 October 2026
How a bonus is taxed
A bonus is pay. It is added to your salary and taxed in the same income tax bands and at the same National Insurance rates. The only reason it feels heavily taxed is that it lands on top of everything else, so it is taxed at your highest rate: 20% tax and 8% NI for most people, 40% and 2% if the bonus pushes you over £50,270, and an effective 60% between £100,000 and £125,140 where the personal allowance disappears. Student loan repayments (9%) also apply to the bonus.
Why the bonus month looks worse than the year
PAYE works month by month. In the month a £5,000 bonus is paid, your employer taxes it as if you earned that much extra every month, which can put part of it into the 40% band for that month even if your yearly income stays below £50,270. The overpaid tax comes back through smaller deductions over the following months, or as a refund after April. National Insurance does not come back: it is worked out per pay period, so a large bonus month pays NI at 2% on the part above £4,189 that month, which is usually a small win.
Ways to keep more of a bonus
Paying some or all of a bonus into your pension through salary sacrifice (if your employer offers it) removes it from both tax and NI. A 40% taxpayer keeps the full gross in the pension instead of 58p in the pound. Check the pension annual allowance (£60,000) first. Spreading a bonus across two tax years, where the employer agrees, can keep you under the £50,270 or £100,000 lines.
The words on this page, in plain English
- Take-home pay
- The money that reaches your bank account after tax, National Insurance and other deductions. Also called net pay.
- Gross pay
- Your pay before anything is taken off. The salary in a job advert is gross pay.
- Personal allowance
- The first £12,570 you earn each year is not taxed. Earn over £100,000 and this allowance shrinks.
- Tax code
- A short code on your payslip, such as 1257L, that tells your employer how much untaxed pay you get. The numbers times 10 is your allowance.
- PAYE
- "Pay As You Earn": your employer takes tax and National Insurance out of each payslip and sends it to HMRC for you.
- National Insurance (NI)
- A second tax on earnings that pays for the State Pension and some benefits. Most employees pay 8% on earnings between £12,570 and £50,270, then 2%.
- Student loan plan
- Which repayment rules apply to your loan. It depends on when and where you studied. Plan 2 covers most English students who started after 2012. Plan 5 those who started after 2023.
- Salary sacrifice
- You give up part of your salary and your employer pays it into your pension instead. You pay less tax and less National Insurance on it.
- Scottish rates
- If you live in Scotland you pay income tax in six bands set by the Scottish Parliament instead of the three bands used in the rest of the UK.
Questions people ask
How much tax will I pay on a £5,000 bonus?
If your salary is under £45,270, the whole bonus is taxed at 20% plus 8% NI, so you keep £3,600. If you are already a higher rate taxpayer, it is 40% plus 2%, so you keep £2,900. The calculator above works it out for your own salary.
Is there a separate bonus tax rate in the UK?
No. Bonuses are taxed as ordinary pay through PAYE.
Why was my bonus taxed at 40% when I earn less than £50,270?
PAYE taxed that month on its own. The extra tax is refunded through later payslips in the same tax year or by HMRC after the year ends.
Can I put my bonus into my pension?
Yes, through salary sacrifice or a bonus waiver if your employer offers it. You save tax and NI on the amount. Ask payroll before the bonus is paid.
Sources
The calculator on this page reads its rates from the same file these links are listed in. If a rate changes, the source list changes with it.
- GOV.UK: Rates and thresholds for employers 2026 to 2027 (checked 25 October 2026)
- GOV.UK: Tax on bonuses and benefits: PAYE (checked 25 October 2026)
These figures are estimates to help you plan. Your payslip is the final word: PAYE works month by month, so a single payslip can differ a little, but the yearly totals match. See how we calculate and the accuracy tests.
More UK calculators
Take-home pay, Hourly Wage Calculator, Pro Rata Salary Calculator, National Insurance Calculator, Student Loan Repayment Calculator, Pension Salary Sacrifice Calculator, Scottish Income Tax Calculator, VAT