Bonus Tax Calculator: How Much Will I Keep?
Enter your salary and your bonus to see how much of it ends up in your bank account.
| Bonus before tax | £5,000 |
|---|---|
| Extra income tax | −£1,000 |
| Extra National Insurance | −£400 |
| Bonus after deductions | £3,600 |
A bonus is not taxed at a special rate: it is added to your pay and taxed at your normal rates, so it is taxed at your highest rate. Paying part of a bonus into your pension can reduce the tax.
How a bonus is taxed
There is no special tax rate for bonuses. A bonus is added to your pay and taxed with the rest of your income, so the part that falls in a higher band is taxed at the higher rate. You also pay National Insurance on it (8%, or 2% above £50,270), and student loan repayments if you have a loan.
Example: on a £40,000 salary, a £5,000 bonus leaves you with £3,600 after £1,000 income tax and £400 National Insurance.
Why a bonus looks like it is taxed more
If your employer pays the bonus in one month, the extra income makes that month’s pay larger, and on a monthly basis the tax looks high. Over the full tax year the total tax is the same as if the bonus had been spread out.
Ways to keep more of a bonus
- Ask to pay part of it into your pension through salary sacrifice: it can save income tax and National Insurance. Try the salary sacrifice calculator.
- If your income is between £100,000 and £125,140, a pension contribution can recover your Personal Allowance. See the 60% tax trap.
Read more in how bonuses are taxed.
Sources: GOV.UK: Income Tax rates and Personal Allowances, GOV.UK: Pension tax relief. Figures last checked on 8 October 2026.
Frequently asked questions
How much tax do I pay on a £5,000 bonus?
On a £40,000 salary you pay £1,000 income tax and £400 National Insurance on a £5,000 bonus, so you keep £3,600.
Is a bonus taxed at 40%?
Only the part of your total pay above the higher-rate threshold is taxed at 40%. If your pay including the bonus stays in the basic-rate band, it is taxed at 20%.
Why was my bonus taxed so much?
Payroll treats the bonus as extra pay in one month. Over the whole year the tax comes out the same as if the bonus had been spread out.
More from UK Answers
Figures are for the 2026/27 tax year from official sources and are estimates for guidance only, not financial or legal advice. Printed from ukanswers.co.uk.