Enter your bonus and your salary to see how much Income Tax and National Insurance comes off it, and what you keep. The bonus is taxed at your top rate, on top of your salary.
Before tax, without the bonus
Your bonus after tax
£3,600
You keep 72% of a £5,000 bonus
What this means
A bonus isn’t taxed at a special rate: it’s taxed like the rest of your pay, at your top rate. Here that takes 28%, because the whole bonus sits on top of your salary.
Your employer adds the bonus to that month’s pay. Income Tax is worked out on your pay for the year so far, so the month’s deduction usually comes out about right. National Insurance is worked out on each month alone, so a big bonus can mean a little less NI than shown here.
Asking for the bonus to be paid into your pension (bonus sacrifice) avoids Income Tax and National Insurance on it.
| Bonus | £5,000 |
| Income Tax | −£1,000 |
| National Insurance | −£400 |
| You keep | £3,600 |
| If your salary plus bonus is in the | Income Tax | National Insurance | You keep about |
|---|---|---|---|
| Basic-rate band | 20% | 8% | 72% |
| Higher-rate band | 40% | 2% | 58% |
| £100,000 to £125,140 | 60% | 2% | 38% |
| Additional-rate band (over £125,140) | 45% | 2% | 53% |
Rates for England, Wales and Northern Ireland in 2026–27. Scotland has its own Income Tax bands. Student loan repayments take another 9% (6% for a postgraduate loan) of income above the threshold.
Last updated
Your bonus is taxed like the rest of your pay, at your highest rate. A basic-rate taxpayer in England keeps about 72% of a bonus (after 20% tax and 8% National Insurance); a higher-rate taxpayer keeps about 58% (40% tax and 2% NI).
The bonus is added to that month's pay, so more tax comes off that payslip. Income Tax works on your pay for the year so far, so it usually comes out about right over the year. If you're on an emergency or "week 1/month 1" tax code, you may pay too much and get it back later.
Yes. If the bonus takes your income over £100,000, you lose £1 of Personal Allowance for every £2 above it, so that part of the bonus is taxed at an effective 60% plus National Insurance. Paying the bonus into your pension can avoid it.
Many employers offer bonus sacrifice, where part or all of the bonus goes into your pension instead. You pay no Income Tax or National Insurance on it, and some employers add their NI saving too. You have to agree it before the bonus is paid.