Finance Calc App

UK Bonus take-home calculator

See how much of a bonus you take home after income tax and National Insurance. A bonus is taxed at your marginal PAYE rate, so more is taken than on your regular salary.

By Mitch Duncan Last reviewed Methodology

Your bonus

Tax year: 2025/26 · Source: HMRC (gov.uk)

Bonus take-home
£5,800.00
Tax on the bonus
£4,200.00
Breakdown
Gross bonus
£10,000.00
Tax & contributions on bonus
−£4,200.00
You keep
£5,800.00
Effective tax rate on bonus
42.0%
Marginal rate (incl. on bonus)
40.0%
Why your payslip may differ

A bonus is taxed through PAYE at your marginal income-tax and National Insurance rates. Because PAYE spreads allowances evenly across the year, a one-off bonus can look over-taxed in that month's payslip; it evens out over the tax year. NI is only 2% on earnings above the upper limit.

A bonus is taxed at your marginal rate — the rate on your top slice of income — so a higher proportion is taken than on your average salary. This estimate uses current brackets and ignores benefits, salary-sacrifice, or pension routing of the bonus, which can reduce the tax.

Want the full picture? Overtime and Bonus Pay Explained →

How a bonus is taxed in the UK

A bonus is taxed through PAYE at your marginal income-tax rate (20%, 40%, or 45%) plus National Insurance. Employee NI is 8% on earnings between the primary threshold and the upper earnings limit, then just 2% above it — so for higher earners the NI on a bonus can be lower than on basic salary.

Bonus kept = net(salary + bonus) − net(salary)

Why your payslip can look over-taxed

PAYE spreads your tax-free Personal Allowance and bands evenly across the year. A one-off bonus in a single month can push that month's pay into a higher band temporarily, so it looks heavily taxed — but it evens out over the tax year and corrects automatically through the cumulative PAYE system.

The 60% trap and pension sacrifice

Between £100,000 and £125,140 the Personal Allowance is withdrawn, creating an effective 60% marginal rate. A bonus that pushes you into this band is taxed very heavily. Sacrificing the bonus into a pension avoids income tax and both employee and employer NI on that amount, and can restore lost allowance — often the most tax-efficient option.

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Frequently asked questions

How is tax on a bonus calculated?
A bonus is taxed at your marginal rate — the rate on your top slice of income — because it stacks on top of your salary. The cleanest way to find what you keep is to compare your take-home pay with the bonus against your take-home without it; the difference is the bonus net of tax. The calculator above does exactly that using current tax brackets.
Why does it feel like my bonus is taxed more than my salary?
Because it's taxed at your marginal rate, not your average rate. Your salary benefits from lower bands and any tax-free allowance first; the bonus sits entirely on top, in your highest band, so a bigger share is taken. It isn't taxed under a special 'bonus tax' — it's just that the whole bonus falls in your top bracket.
Why is the tax on my payslip different from what I actually owe?
Payroll systems often use a special method to withhold tax on one-off payments — a flat supplemental rate, or treating the bonus as if you earned it every pay period. That can take too much or too little in that single cheque. It reconciles when you file your tax return or over the course of the tax year, so the payslip figure isn't your final tax.
Can I reduce the tax on my bonus?
Often yes. Routing some or all of a bonus into a tax-advantaged pension or retirement account can avoid income tax (and sometimes social contributions) on that portion. Timing a bonus into a lower-income year, or using tax-sheltered accounts for what you keep, can also help. The right option depends on your country's rules.
Is take-home from a bonus the same as from regular pay?
No — proportionally you keep less of a bonus than of your base salary, because the bonus is taxed entirely at your marginal rate while your salary is taxed progressively through the lower bands first. That's why the effective rate shown on the bonus is higher than your overall effective tax rate.
Does a bonus push me into a higher tax bracket?
It can push part of your income into a higher band, but only the portion above the threshold is taxed at the higher rate — the rest of your income is unaffected. A bonus never reduces your overall take-home; you always keep some of it. In some systems, though, a bonus can trigger allowance withdrawal or extra repayments, which the calculator's regional notes flag.

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