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Bonus Tax Calculator (2026/27)

Estimate how much of your bonus you'll actually keep after Income Tax, National Insurance and student loan deductions.

Short answer

Bonuses are taxed at your marginal rate. A higher-rate taxpayer typically keeps about 51p of every £1 bonus (40% tax + 2% NI + maybe 9% student loan).
Step 1 of 10%

Your numbers

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Calculation method, coverage and version

Inputs used
Annual base salary, Bonus amount (gross), Student loan plan.
Calculation approach
The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage
Mortgages & Money. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version
No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.
Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

Primary sources and official verification

Use these official sources to verify current rules before acting. Coverage and dates can differ across England, Scotland, Wales and Northern Ireland.

See the sitewide source policy.

How it works

Your bonus is added to your year-to-date earnings and taxed at whatever rate it falls into. If it tips you over £50,270, the part above is taxed at 40%; over £100k triggers personal allowance taper (effective 60%). Salary sacrificing the bonus into a pension avoids all those deductions.

Worked example

£60k salary + £10k bonus, no student loan.

  • Bonus all in 40% band → £4,000 tax
  • NI 2% → £200
  • Take home: £5,800 (58%)

Who should use this

  • •Anyone receiving an annual or one-off bonus
  • •Higher-rate earners considering bonus sacrifice
  • •Sales staff with variable commission
  • •People near the £100k or £50k threshold

Common mistakes

  • ×Thinking the month's bonus is taxed at a special 'bonus rate' (it's not — it's just marginal rate)
  • ×Not checking if it pushes you into the £100k trap
  • ×Forgetting student loan applies to bonuses too
  • ×Missing the bonus sacrifice opportunity if your employer offers it

Frequently asked questions

Is bonus taxed at 40% automatically?▾

No — only the portion that falls into the 40% band is. The rest is taxed at your normal marginal rate.

Can I sacrifice my bonus into pension?▾

Most employers allow this if requested before the bonus is paid. It avoids tax, NI and student loan — very tax-efficient.

Why was so much tax taken from my bonus month?▾

PAYE estimates your annual income from each month's pay. A big bonus month makes it think you'll earn more, so it over-deducts. It rebalances over the year.

Does bonus count for pension contributions?▾

Yes — bonus is pensionable for most workplace schemes, often up to a cap.

What about a sign-on bonus?▾

Treated the same way as any other bonus — taxed in the month received.

Are bonuses subject to student loan?▾

Yes — student loan deduction is calculated each pay period on total pay including bonus.

Related calculators

Take-Home Pay →Income Tax →National Insurance →Salary Sacrifice →Student Loan →Pension Gap →