Bonus tax calculator
Work out how much of a bonus you keep after Income Tax, National Insurance and other deductions.
2026 to 2027 rates from HMRC, checked 13 November 2026.
Result
Of a £5,000.00 bonus, you keep £3,600.00 after tax and deductions.
of your bonus after deductions, 2026 to 2027
| Income Tax on the bonus | £1,000.00 |
|---|---|
| National Insurance on the bonus | £400.00 |
| You keep | £3,600.00 |
This is the extra tax for the whole year. In the month the bonus is paid, payroll can take more or less than this, and it evens out over the rest of the year.
Show the workings
| Step | Sum | Answer |
|---|---|---|
| Tax-free pay from tax code 1257L | £12,570.00 allowance, which code 1257L covers up to £12,579.00 | £12,579.00 |
| Taxable pay | £40,000.00 − £12,579.00 | £27,421.00 |
| Basic rate | £27,421.00 × 20% | £5,484.20 |
| National Insurance | £27,430.00 above £12,570.00 × 8% | £2,194.40 |
| Take-home pay | £40,000.00 − £5,484.20 tax − £2,194.40 National Insurance | £32,321.40 |
What this leaves out or assumes
- England, Wales and Northern Ireland Income Tax rates, a standard Personal Allowance and National Insurance category A.
- Tax-free pay follows the tax code, as payroll and HMRC's own take-home pay estimator do: code 1257L gives £12,579 a year, not £12,570, which is up to a few pounds less tax.
- Worked out over the whole tax year. Payroll works out each payday on its own, so a monthly or weekly payslip can differ by a few pence, or by more in a month with a bonus.
Where the figures come from
- Personal Allowance, 2026 to 2027: £12,570 a year. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- Range of allowances each tax code number covers: £10. Source: HMRC PAYE Manual PAYE11065: suffix codes, calculating the number. Checked 13 November 2026.
- Basic rate of Income Tax (England, Wales and Northern Ireland): 20%. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- Basic rate band: taxable income it covers (England, Wales and Northern Ireland): £37,700 a year. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- Higher rate of Income Tax (England, Wales and Northern Ireland): 40%. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- Taxable income above which the additional rate applies (England, Wales and Northern Ireland): £125,140 a year. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- Additional rate of Income Tax (England, Wales and Northern Ireland): 45%. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- National Insurance primary threshold: £12,570 a year. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- National Insurance upper earnings limit: £50,270 a year. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- Employee National Insurance between the primary threshold and upper earnings limit (category A): 8%. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- Employee National Insurance above the upper earnings limit (category A): 2%. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
How a bonus is taxed
A bonus is taxed as pay. It is added to your salary for the year, so it is taxed at the rate of the band it falls in. If it takes you over a band, part of it is taxed at the higher rate. It does not have its own special rate.
| Salary and bonus | You keep | Share kept |
|---|---|---|
| £2,000 bonus on £30,000 | £1,440.00 | 72% |
| £5,000 bonus on £30,000 | £3,600.00 | 72% |
| £5,000 bonus on £45,000 | £3,600.00 | 72% |
| £5,000 bonus on £55,000 | £2,900.00 | 58% |
| £10,000 bonus on £95,000 | £4,800.00 | 48% |
| £10,000 bonus on £110,000 | £3,800.00 | 38% |
Between £100,000 and £125,140 you lose £1 of Personal Allowance for every £2 of pay, so a bonus in that range keeps less than you might expect. Paying some of it into a pension can bring your pay back under £100,000.
Why your bonus payslip looks different
Payroll works out tax on your pay so far in the tax year, against the share of each band for the months gone, so a bonus month can take more tax than the bonus costs over the year. That usually evens out over the rest of the tax year. National Insurance is worked out on each payday on its own, so a large bonus can mean less National Insurance than the yearly sum shows. This calculator shows the extra over the whole year.