How Bonuses Are Taxed in the UK
A bonus is taxed like the rest of your pay, so how much you keep depends on your income and tax band.
Bonuses are taxed as normal earnings
There is no special tax rate for bonuses. A bonus is added to your pay for the month it is paid and taxed through payroll using your tax code, along with National Insurance. Your marginal rate, the rate on the next pound you earn, decides how much you keep.
How much of a bonus do you keep?
| Your income band | Tax | NI | You keep |
|---|---|---|---|
| £12,570 to £50,270 | 20% | 8% | 72p in £1 |
| £50,270 to £100,000 | 40% | 2% | 58p in £1 |
| £100,000 to £125,140 | 60% | 2% | 38p in £1 |
| Over £125,140 | 45% | 2% | 53p in £1 |
A £5,000 bonus on a £30,000 salary gives you £3,600 after £1,000 tax and £400 National Insurance.
Why a bonus can look over-taxed on your payslip
Payroll works out tax cumulatively across the year. A large bonus can make your pay for that month look high, so more tax is taken that month. It evens out over the rest of the tax year, and you are never taxed more than the annual calculation. Any overpayment is corrected through your tax code, or you can reclaim it from HMRC.
Ways to keep more
- Ask your employer to pay part of the bonus into your pension by salary sacrifice, which saves tax and National Insurance.
- If your bonus pushes you over £100,000, pension contributions can help recover your Personal Allowance.
Use our take-home pay calculator or pay rise calculator to see the effect of extra income on your take-home pay.
This guide is general information, not financial or legal advice. Rates checked 8 October 2026 against GOV.UK.
Related
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.