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Bonus Tax Calculator
What you actually keep from a bonus, on top of your salary, at 2026/27 rates
Bonus Tax Calculator 2026/27
How much of your bonus will you actually keep?
A bonus is added to your salary and taxed in the band it lands in. Enter your salary and the bonus to see the income tax, the National Insurance and what reaches your bank account.
Based on tax rates and allowances in England, 2026/27
Your salary before tax, plus any other taxable income. Leave the bonus out, it goes below.
We assume you are the higher earner in your household, because the High Income Child Benefit Charge falls on the higher earner.
What the numbers say
Enter your salary and your bonus to see the tax, the National Insurance and what you keep.
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Where your bonus goes
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Illustrative only, not financial advice. Based on tax rates and allowances in England for 2026/27. Personal allowance £12,570, reduced by £1 for every £2 of income over £100,000. Basic rate 20% to £50,270, higher rate 40% to £125,140, then 45%. Employee National Insurance 8% between £12,570 and £50,270 and 2% above. National Insurance is worked out on an annual basis, which is exact for directors and a close approximation for most employees. Payroll may deduct a different amount in the month the bonus is paid, and it evens out over the year. The High Income Child Benefit Charge is 1% of the benefit for every £200 of adjusted net income over £60,000, the whole benefit at £80,000. It is collected through Self Assessment or your tax code, and falls on the higher earner. Scottish income tax bands differ. The results depend entirely on what you enter and your circumstances may differ. Talk your figures through with us, the first conversation is free.
Why a bonus can feel smaller than it should
A bonus is earnings. It is added to your salary in the tax year it is paid and taxed in the band it lands in. For a higher rate taxpayer that means 40% income tax and 2% National Insurance, so you keep 58p in every pound.
Two thresholds make it worse. Between £100,000 and £125,140 your personal allowance is withdrawn, so each extra pound costs 60% plus National Insurance. Between £60,000 and £80,000 the High Income Child Benefit Charge claws back Child Benefit, so the calculator asks about that too.
Payroll often takes more in the month the bonus is paid, because it treats that month as if you earned it every month. That usually evens out by the end of the tax year. The calculator shows the tax over the whole year, which is what you actually pay.
The main way to keep more is to sacrifice part of the bonus into your pension before it is paid. The salary sacrifice calculator shows that in detail. If you are paid in shares, use the RSU tax calculator, the share option tax calculator or the EMI and CSOP option calculator. For shares you sell later, the capital gains tax calculator covers the sale.
Frazer James is an independent, FCA-regulated firm of Certified Financial Planners. Advice covers the whole of the market, there is no initial fee, and the first meeting is free.
Taxed at your top rate
A bonus sits on top of your salary, so all of it is taxed at the highest rate you reach. It never gets the lower bands your salary has already used.
The 60% band
Between £100,000 and £125,140 the personal allowance is withdrawn. A bonus in that range loses 62% to income tax and National Insurance.
Sacrifice before it is paid
Swapping some of the bonus for an employer pension contribution saves income tax and National Insurance. It has to be agreed before the bonus is paid.
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Questions people ask about tax on a bonus
How much tax will I pay on my bonus?
It depends on the band your salary already reaches. On top of a £60,000 salary a bonus is taxed at 40% plus 2% National Insurance, so you keep 58%. Between £100,000 and £125,140 the loss of personal allowance takes the effective rate to 62%. Enter your own salary in the calculator above to see your figure.
Why was so much tax taken from my bonus?
Payroll works out tax month by month. In the month a bonus is paid it can look as if you earn that much every month, so more is taken. Over the tax year it normally evens out through your tax code. The calculator shows the full year position.
Does a bonus affect Child Benefit?
It can. If a bonus takes your adjusted net income over £60,000, the High Income Child Benefit Charge applies. It claws back 1% of the benefit for every £200 above that. By £80,000 the whole benefit is repaid. The charge falls on the higher earner in the household and is collected through Self Assessment or your tax code.
Can I put my bonus into my pension?
Many employers allow a bonus sacrifice. You give up some or all of the bonus before it is paid, and your employer pays it into your pension instead. You save income tax and your own National Insurance. It must be agreed before the bonus is paid, and it counts towards your £60,000 annual allowance.
Is a bonus taxed differently from salary?
No. A bonus is earnings, taxed at the same rates as salary. The only difference is that it arrives on top, so it is taxed at your highest rate. It can also push you over £100,000 or £60,000, which is where the personal allowance and Child Benefit start to be lost.
Reviewed by
BSc, MLIBF, PETR, Chartered ALIBF · Co-Founder and Chartered Associate
Chris has spent over a decade in financial planning and specialises in research and technical analysis. He checks every figure and calculation on this page before it is published.
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