How are bonuses taxed in the UK?
A cash bonus is employment income. There is no separate UK “bonus tax rate”: the bonus sits on top of your other pay, so the extra amount can fall into your highest Income Tax band and can also increase employee National Insurance and student-loan deductions. PayPrecise estimates the Income Tax effect from the annual marginal liability, then models NI and student loans in the monthly, 4-weekly, fortnightly or weekly pay period in which the bonus is paid.
The result therefore shows two views: an estimated bonus take-home for the selected pay period using pay-period NI and student-loan rules, plus the annualised salary comparison retained for planning context.
Bonus after tax examples for 2026/27
These examples assume the bonus is paid in one monthly pay period in England, Wales or Northern Ireland, with the standard Personal Allowance, Category A National Insurance, no pension and no student loan. Income Tax uses the annual marginal estimate; NI uses monthly thresholds.
| Base salary | Gross bonus | Estimated monthly-bonus net | Bonus kept |
|---|---|---|---|
| £30,000 | £5,000 | £3,799 | 76.0% |
| £40,000 | £5,000 | £3,849 | 77.0% |
| £50,000 | £10,000 | £5,853 | 58.5% |
| £95,000 | £10,000 | £4,800 | 48.0% |
| £120,000 | £10,000 | £4,529 | 45.3% |
Figures are rounded for readability. Select a different pay frequency above if you are paid weekly, fortnightly or every 4 weeks.
Why a bonus can push you into a higher tax band
UK Income Tax is progressive. If your salary already uses the lower bands, the next pound can be taxed at a higher marginal rate. In England, Wales and Northern Ireland, the standard higher-rate threshold is £50,270 for 2026/27. Scotland has separate bands, including a 42% higher rate from £43,663 of income when the standard Personal Allowance applies.
The £100,000 Personal Allowance taper
Adjusted net income above £100,000 reduces the standard Personal Allowance by £1 for every £2 of excess income. A bonus can therefore increase ordinary Income Tax and also withdraw part of the tax-free allowance. PayPrecise models that taper and flags when your salary plus bonus crosses £100,000. If the bonus is what takes you over the line, use the dedicated bonus over £100k calculator; for the wider mechanics, see the £100k tax trap calculator.
Bonus, pension and student-loan deductions
If you contribute a percentage of gross pay to a workplace pension, the method matters. Salary sacrifice can reduce taxable pay and employee NI; net pay arrangements reduce taxable pay but normally not NI; relief at source works differently because basic-rate relief is added by the pension provider and higher-rate relief may be available through the tax system. If you are specifically planning around the £100,000 threshold, the pension contribution to stay under £100k guide gives the next step.
Student and postgraduate loan deductions can also rise when bonus income pushes earnings further above the relevant threshold. For 2026/27, PayPrecise supports Plan 1, Plan 2, Plan 4, Plan 5, Postgraduate Loan, and undergraduate-plan plus postgraduate combinations. See the student loan repayment guide for the thresholds and plan differences. Student-loan deductions in the calculator are worked on the selected bonus pay period and rounded using HMRC manual-deduction rules.
Why is my bonus taxed so much and why can the payslip differ?
A bonus often looks heavily taxed because it is added on top of salary. PayPrecise now models National Insurance and student-loan deductions using the actual pay frequency you select. The remaining uncertainty is PAYE Income Tax: the calculator uses the annual marginal tax effect, while the amount withheld on the actual payslip can depend on your tax code, cumulative payroll position and payroll rounding.
How much tax will I pay on a £1,000, £5,000 or £10,000 bonus?
There is no fixed tax percentage for a UK work bonus. These examples use a monthly bonus pay period, 2026/27 England, Wales or Northern Ireland rates, a standard Personal Allowance, Category A National Insurance, no pension and no student loan.
| Gross bonus | On £30k salary | On £50k salary | On £100k salary |
|---|---|---|---|
| £1,000 | £720 net | £633 net | £380 net |
| £5,000 | £3,799 net | £2,953 net | £1,900 net |
| £10,000 | £7,699 net | £5,853 net | £3,800 net |
Income Tax is an annual marginal estimate; National Insurance uses the monthly bonus-period thresholds. Enter your exact salary and pay frequency above for a personalised estimate.
Bonus tax calculator for Scotland
Scottish taxpayers need a bonus calculator that uses Scottish Income Tax bands rather than the England, Wales and Northern Ireland bands. For 2026/27 Scotland has Starter, Basic, Intermediate, Higher, Advanced and Top rates, so the amount of a bonus you keep can differ even when National Insurance is the same. Select Scotland in the calculator to apply the Scottish bands to both salary-only pay and salary plus bonus.
If you need a bonus tax calculator for Scotland, choose Scotland above and enter your actual salary and bonus. The result then reflects your own position instead of applying a generic bonus percentage. For your full Scottish salary position, use the Scotland salary calculator; if you are comparing tax systems, see moving to Scotland and tax.
Can I put my bonus into a pension to reduce tax?
If your employer offers bonus sacrifice or salary sacrifice, some or all of a bonus may be exchanged for an employer pension contribution before the cash bonus is paid. That can reduce taxable cash pay and may reduce employee National Insurance. The calculator can model pension contributions and lets you specify whether your normal pension percentage applies to the bonus.
Do not assume every workplace scheme treats bonuses as pensionable or allows a last-minute sacrifice. Check the arrangement with payroll or your pension provider before the bonus is processed.
Bonus Tax Calculator FAQs
Is a bonus taxed at a special higher rate in the UK?
No. A cash bonus is employment income and does not have a separate bonus tax rate. It can look more heavily taxed because it sits on top of your normal salary, so more of the bonus may fall into your highest marginal Income Tax band and may also attract National Insurance and student-loan deductions.
How much tax will I pay on a £5,000 bonus?
It depends on your salary and deductions. With a monthly pay frequency, standard 2026/27 England, Wales or Northern Ireland assumptions, no pension and no student loan, a £5,000 bonus on a £40,000 salary is about £3,849 net and the same bonus on a £50,000 salary is about £2,953 net. Income Tax is estimated from annual marginal liability while National Insurance uses the selected pay-period thresholds.
How much of a £10,000 bonus will I keep after tax?
There is no single answer because your starting salary determines which tax bands the bonus uses. With a monthly pay frequency and standard rest-of-UK 2026/27 assumptions, no pension and no student loan, a £10,000 bonus on £30,000 salary is about £7,699 net, on £50,000 salary about £5,853 net, and on £100,000 salary about £3,800 net.
Why is my bonus taxed so much?
A bonus is added to employment income rather than taxed in isolation. If your salary has already used your Personal Allowance and lower tax bands, the bonus can be exposed to higher marginal Income Tax, National Insurance and student-loan deductions. A bonus that takes adjusted net income above £100,000 can also start withdrawing the Personal Allowance.
Do I pay National Insurance on a work bonus?
Normally, yes for an employee receiving a cash bonus through payroll. Employee Class 1 National Insurance is calculated using earnings in the pay period. PayPrecise therefore calculates the extra NI from the bonus using the selected monthly, 4-weekly, fortnightly or weekly pay period rather than simply annualising the bonus.
Does a bonus affect student-loan repayments?
It can. Student and postgraduate loan deductions use pay-period earnings and thresholds. PayPrecise calculates the extra deduction in the selected monthly, 4-weekly, fortnightly or weekly bonus period for Plan 1, 2, 4, 5, Postgraduate Loan, or an undergraduate plan plus Postgraduate Loan.
Can I sacrifice my bonus into a pension to reduce tax?
Some employers allow bonus sacrifice or salary sacrifice into a pension. Where it is set up correctly before the bonus is paid, it can reduce taxable cash pay and may reduce employee National Insurance. Employer and pension-scheme rules vary, so confirm the treatment before relying on the estimate.
What happens if my bonus takes me over £100,000?
Adjusted net income above £100,000 starts reducing the standard Personal Allowance by £1 for every £2 of excess income. That can make the marginal deduction on part of a bonus much higher. The calculator models the taper and flags when salary plus bonus crosses the threshold.
Does the bonus tax calculator include Scotland?
Yes. Select Scotland to use the 2026/27 Scottish Income Tax bands. National Insurance remains UK-wide, while student-loan treatment depends on the plan you select.
Why can my actual bonus payslip differ from this calculator?
PayPrecise models National Insurance and student-loan deductions using the selected pay period. The Income Tax component remains an annual marginal planning estimate because actual PAYE withholding can depend on your tax code, cumulative payroll position and payroll rounding. Pension scheme rules can also differ.
Rates, data sources and methodology
Rates were rechecked on 10 August 2026. Income Tax is estimated by comparing annual tax liability before and after the bonus. Employee National Insurance and student/postgraduate-loan deductions are calculated using the selected monthly, 4-weekly, fortnightly or weekly bonus pay period. Actual PAYE Income Tax on the payslip can still differ because tax codes and cumulative payroll position matter.
Use the bonus result for the bigger pay decision
A bonus is one part of compensation. Compare it with a permanent increase using the pay rise calculator, benchmark your base pay with the salary percentile calculator, or model work costs and time with True Wage.