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.See how much of your bonus you keep.
Your details
Your base salary before bonus.
The gross bonus you expect to receive.
Found on your payslip, e.g. 1257L.
Your results
Bonus Amount
£5,000Tax Deduction
£1,000NI Deduction
£400You Keep
£3,600Your 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
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.
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.
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.
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.
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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.
