Simple Salary / Bonus tax calculator
Bonus tax calculator
How much of your bonus you actually keep after income tax, National Insurance and student loan, and why a bonus can feel taxed more heavily than your salary.
How is a bonus taxed in the UK?
A bonus is taxed as ordinary pay. It is added to your salary and taxed at your income tax rate (20%, 40% or 45%) plus National Insurance (8% below £50,270, 2% above) and student loan repayments if you have one. There is no separate bonus tax rate.
Why does my bonus seem taxed more than my salary?
Two reasons. The bonus sits on top of your salary, so it is taxed at your highest rate, not your average rate. And payroll taxes the whole bonus in the month it is paid, which can push that month into a higher band temporarily; any overpayment is usually corrected in later months of the same tax year.
Can I avoid tax on a bonus?
Not avoid, but you can reduce it. Many employers let you pay some or all of a bonus into your pension by salary sacrifice, which saves income tax and NI on that part. This is most valuable if the bonus takes you over £50,270 or over £100,000.
Is a bonus pensionable?
It depends on your scheme rules. Many schemes base contributions on basic salary only, so a bonus would not increase your pension unless you choose to sacrifice some of it.
Rates last checked against gov.uk on 11 October 2026.
Sources
Please note
Estimates only. The tax taken in your bonus month on the payslip can differ from the yearly figure here; the yearly total is what matters.