Bonus Tax Calculator
Your bonus is taxed at your top marginal rate. This shows the real take-home figure.
How is a bonus taxed in the UK?
A bonus is just extra earnings. It is added on top of your salary, so every pound is taxed at your highest rate: 20% or 40% (or 45%) income tax plus 8% or 2% employee National Insurance. This calculator works it out as the difference between your tax and NI with and without the bonus.
Sacrificing part of the bonus into your pension means that part avoids tax and NI. See the wider effect with the Pension Calculator or your monthly take-home pay.
Frequently asked questions
How much tax do I pay on a £5,000 bonus?
If you are a higher-rate taxpayer you lose 40% income tax plus 2% NI, so about £2,900 of a £5,000 bonus. A basic-rate taxpayer loses 28% and keeps about £3,600.
Is a bonus taxed more than salary?
No. It is taxed at the same rates as your salary, but it can push you into a higher band, which makes it feel heavier. Payroll may also withhold more in the month it is paid and correct it over the year.
Can I avoid tax on my bonus?
Paying some or all of it into a pension through salary sacrifice is the main legitimate route, because it saves income tax and employee NI.
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