YF Accounting 2026/27 tax year · England, Wales & Northern Ireland · Free tool
Bonus tax calculator: how much of your bonus will you actually get?
Type in your salary and the bonus you are expecting. The calculator shows the income tax and National Insurance that comes off, what reaches your bank, and whether paying some of it into your pension would leave you better off.
What the calculator assumes
So you know what the numbers mean:
- ✓ 2026/27 rates, tax code 1257L, paid monthly
- ✓ Class 1 employee National Insurance at 8% and 2%
- ✓ No student loan or other deductions
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PAYE & bonus calculator for 2026/27England, Wales & Northern Ireland. Assumes tax code 1257L and Class 1 employee National Insurance.
Of that bonus, you keep£0
What happens to the bonus
| Gross bonus | £0 |
| Income tax | £0 |
| National Insurance | £0 |
| Reaches your bank | £0 |
Your payslip, side by side
| Normal | Bonus | |
|---|---|---|
| Gross | £0 | £0 |
| Tax | £0 | £0 |
| NI | £0 | £0 |
| Take‑home | £0 | £0 |
An estimate, assuming even monthly pay, the standard 1257L code, and no student loan or other deductions. Scotland has its own income tax bands. Ask me about your own figures if the numbers matter.
Figures verified against gov.uk rates on 4 September 2026. Scottish taxpayers have different income tax bands, so the tax line will be out for you (National Insurance is the same UK-wide).
How it works
How a bonus is taxed in the UK in 2026/27
- It is taxed as normal pay A bonus is not taxed at a special rate. Your employer adds it to that month’s salary and runs it through PAYE like any other pay. It feels heavily taxed because the whole bonus sits on top of your salary, so it is taxed at your marginal rate: 20%, 40% or 45%.
- The 2026/27 income tax bands Personal allowance £12,570. Basic rate 20% on income up to £50,270. Higher rate 40% from £50,271 to £125,140. Additional rate 45% above that. Between £100,000 and £125,140 you also lose £1 of personal allowance for every £2 of income, an effective rate of 60%.
- National Insurance is worked out per month Employee NI is 8% on monthly pay between £1,048 and £4,189, then 2% above that. Because NI is calculated per pay period rather than per year, a large bonus paid in one month attracts only 2% on most of it. That is why the NI on a bonus is often lower than people expect.
- Why it can look like 40% when you earn less than £50,270 PAYE is cumulative. If a bonus early in the tax year pushes your pay-to-date above the pro-rata higher-rate threshold, that month is taxed at 40%. Over the following months the calculation corrects itself, so by April you have paid the right amount. If you leave the job before then, HMRC refunds any overpayment through a P800 or your next tax code.
- Your employer pays on it too Employer National Insurance is 15% on pay above £417 a month (£5,000 a year), so a £5,000 bonus costs your employer about £5,750. That matters if you are negotiating: a pension contribution of the same value costs them less than cash.
- Bonus sacrifice can keep far more of it If you agree with your employer before the bonus is paid to put some or all of it straight into your pension, that amount escapes income tax and both employee and employer NI. For a higher-rate taxpayer, £10,000 of bonus that would have left about £5,800 in your bank becomes £10,000 in your pension. Use the pension sacrifice box above to see the effect. Contributions count towards the £60,000 annual allowance.
Questions
Bonus tax FAQs
Is a bonus taxed differently from salary?+
No. A bonus is added to your pay for the month and taxed through PAYE at the same rates as salary. It only feels different because the full bonus is taxed at your highest (marginal) rate, with none of it covered by your personal allowance.
Why was my bonus taxed at 40% when I am a basic-rate taxpayer?+
PAYE works cumulatively across the tax year. A bonus can push your pay-to-date over the pro-rata threshold for that month, so 40% is deducted temporarily. If your total pay for the year stays below £50,270, the overpayment unwinds through your later payslips. If you change jobs first, HMRC refunds it via a P800 or an adjusted tax code.
Do I pay National Insurance on a bonus?+
Yes. Employee Class 1 NI is 8% on monthly pay between £1,048 and £4,189 and 2% above that. Because NI is calculated on each pay period, most of a large one-off bonus is charged at only 2%, unlike income tax which is assessed on your annual income.
Can I put my bonus into my pension instead of taking it as cash?+
Usually, yes. Ask your employer for bonus sacrifice before the bonus is paid. The sacrificed amount goes into your pension free of income tax and National Insurance, and your employer saves 15% NI, which some employers pass on. The contribution counts towards your £60,000 annual allowance, and unused allowance from the previous three years can be carried forward.
Does the calculator work for Scotland?+
Not for income tax. Scotland sets its own bands and rates, so the tax figure will differ. National Insurance is the same across the UK, so the NI line is still right. If you are a Scottish taxpayer, get in touch and we will run the numbers for you.
Will a bonus affect my child benefit or personal allowance?+
It can. The High Income Child Benefit Charge starts when your adjusted net income passes £60,000 and removes the benefit entirely at £80,000. Above £100,000 your personal allowance tapers away, creating a 60% effective rate up to £125,140. Pension contributions reduce adjusted net income, which is why bonus sacrifice is so effective around these thresholds.
Keep reading
Related guides
How PAYE tax is calculated in 2026/27 ↗
Tax codes, bands and a worked example of a normal payslip.
UK personal tax rates 2026/27 ↗
Every band, allowance and threshold in one place.
Salary vs dividends for directors ↗
Run your own company? The bonus question looks different.
Payroll services ↗
Fixed-fee payroll for employers, including bonuses, P11Ds and pensions.
Bonus, pay rise or a new job offer? Ten minutes with an accountant can change what you keep.
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