How much tax will you pay on your bonus?
2025/26Calculate the exact tax, National Insurance, and deductions on your bonus — see what you actually take home.
Select Tax Year
Tax Year 25/26 runs from 6th April 2025 to 5th April 2026.
How Bonus Tax Works in the UK
Many people are surprised by how much tax they pay on their bonus. In the UK, bonuses are not taxed at a special rate — they are simply added to your regular salary and taxed as part of your total income. However, because your bonus sits on top of your salary, it is taxed at your highest marginal rate, which often makes it feel more heavily taxed than your regular pay.
Why Your Bonus Tax Rate May Differ from Your Salary Tax Rate
Your salary uses up your personal allowance (£12,570 of tax-free income) and fills the basic rate band (20% on income up to £50,270). When your bonus arrives, it is placed on top and taxed at whatever rate applies next. If your salary is £45,000, the first £5,270 of your bonus is taxed at 20%, but everything above that is taxed at 40%. National Insurance at 2% also applies above £50,270, making the combined deduction rate 42% on that portion.
The Personal Allowance Trap
If your salary plus bonus pushes your total income above £100,000, the personal allowance taper begins to reduce your tax-free allowance by £1 for every £2 earned over £100,000. This creates an effective marginal rate of approximately 60% on income between £100,000 and £125,140 — higher than the 45% additional rate. Salary sacrifice into a pension is the most effective way to mitigate this.
Reducing Tax on Your Bonus
The most common strategy to reduce tax on a bonus is salary sacrifice into your workplace pension. When you sacrifice your bonus, the amount is diverted to your pension before tax and National Insurance are calculated, meaning you save both income tax and NI contributions. Our pension sacrifice calculator above shows you exactly how much you could save.
Read our full guide on how bonuses are taxed in the UK for worked examples, student loan impact, and bonus sacrifice strategies.
Frequently Asked Questions
Tax Year 2025/26 — Calculations are estimates based on current UK tax rules and should not be considered financial advice. Always consult a qualified tax professional for advice specific to your circumstances.