UK Bonus Tax Calculator (2025/26)
See how much of a bonus you keep after income tax and National Insurance at your marginal rate.
A UK bonus is taxed as ordinary income at your marginal rate, stacked on top of your salary, plus employee National Insurance (2% above the upper earnings limit, otherwise 8%). This is an estimate, not financial advice.
How UK bonus tax works (2025/26)
A bonus is simply extra earnings. It is added to your salary for the year and taxed at your marginal rate, with employee National Insurance on top.
Marginal rates on a bonus
| Total income band | Income tax | Employee NI | Combined |
|---|---|---|---|
| £12,571 – £50,270 | 20% | 8% | 28% |
| £50,271 – £100,000 | 40% | 2% | 42% |
| £100,000 – £125,140 | 40% (+PA taper) | 2% | ~62% |
| Over £125,140 | 45% | 2% | 47% |
Net bonus = bonus − income tax on the bonus − National Insurance on the bonus.
Estimates for the rest of the UK (England, Wales & NI). A pension or salary-sacrifice arrangement can reduce the tax on a bonus. Not tax advice.
Frequently Asked Questions
- How is a bonus taxed in the UK?
- A bonus is treated as ordinary earnings and is taxed at your marginal income tax rate on top of your salary, plus employee National Insurance. There is no separate "bonus tax rate" — it simply stacks onto your other income for the year.
- Why does my bonus feel so heavily taxed?
- Because the bonus sits on top of your salary, it is taxed at your highest band. For a higher-rate taxpayer that is 40% income tax plus 2% National Insurance — 42% in total — so a large slice is deducted.
- Could a bonus push me into a higher tax band?
- Yes. If your salary plus bonus crosses £50,270 or £125,140, part of the bonus is taxed at the next rate up. The calculator handles this by comparing your tax with and without the bonus.
- Does a bonus affect my Personal Allowance?
- If your total income rises above £100,000, your Personal Allowance starts to taper, which can make part of a bonus effectively taxed at 60%. Enter your salary and bonus to see the marginal impact.
- Is this the same as what my payslip shows?
- It is a close estimate of the income tax and NI on the bonus. Actual payroll withholding can differ slightly month to month before settling over the tax year. This is not financial advice.
📅 Last updated: June 2026 · Formulas follow standard banking / tax conventions · Results are for reference only.