Bonus calculator

Bonus Tax Calculator 2026/27

See how much tax and National Insurance you'll pay on your bonus — with marginal rate breakdown and donut chart.

Your details

Your base salary before bonus.

The gross bonus you expect to receive.

Found on your payslip, e.g. 1257L.

Pension contribution0%

Your results

£3,600you keep

Bonus Amount

£5,000

Tax Deduction

£1,000

NI Deduction

£400

You Keep

£3,600

Your bonus of £5,000 is taxed at a marginal rate of 20%. You'll pay £1,000 in income tax and £400 in National Insurance.

How Bonuses Are Taxed

1

Bonuses are added to your salary

HMRC treats your bonus as part of your total annual income, so it's taxed in the same way as your salary.

2

Marginal tax rates apply

If your bonus pushes you into a higher tax band, only the portion above the threshold is taxed at the higher rate.

3

National Insurance is charged

Class 1 NI is charged at 8% on earnings between £12,570 and £50,270, then 2% above the upper earnings limit.

4

Pension reduces the taxable amount

If you contribute to a workplace pension, this reduces the income on which your bonus tax is calculated.

Frequently asked questions

Is a bonus taxed differently from my salary?

No. A bonus is treated as ordinary income by HMRC and taxed using the same income tax bands and rates as your salary. The key difference is that a one-off bonus can push part of your income into a higher marginal tax band for that tax year.

Will my bonus push me into a higher tax bracket?

It depends on your total taxable income. If your salary alone uses up your basic rate band (£50,270 for 2026/27), any bonus will be taxed at 40% or even 45%. If you're well below the higher rate threshold, your bonus may be taxed entirely at 20%.

Do I pay National Insurance on my bonus?

Yes. Employers typically process bonuses through payroll, meaning Class 1 National Insurance is deducted at 8% on earnings between the primary threshold (£12,570) and upper earnings limit (£50,270), then 2% on anything above.

Related calculators