Tools · Tax

Bonus Tax Calculator

Find out how much of your bonus you actually take home after income tax and National Insurance — and whether it tips you into the 60% tax trap.

2026/27 tax year · England, Wales & Northern Ireland

Basic annual salary

Bonus amount

How is a bonus taxed in the UK?

A bonus is taxed exactly like ordinary salary — there's no special "bonus tax". But because it stacks on top of your normal pay, it's all taxed at your highest marginal rate, so it can feel like a big chunk disappears. Past £50,270 it's taxed at 40%; past £100,000 it can hit the effective 60% tax trap.

You can often keep more of it by paying some or all of the bonus into your pension via salary sacrifice.

Frequently asked questions

Why was my bonus taxed so heavily in one payslip?

PAYE can over-deduct in the month a large bonus is paid, because it annualises that month's pay. It usually evens out over the year; this calculator shows the correct annual position.

Can I avoid the tax on my bonus?

Not avoid — but you can defer and shelter it. Paying the bonus into a pension via salary sacrifice means no income tax or NI now, and it grows tax-free until retirement.

Estimates only, not financial advice. Based on 2026/27 rates for England, Wales & Northern Ireland; runs in your browser and stores nothing. Verify with HMRC or an adviser.