Tax year 2026/27

Bonus After Tax UK

A bonus is taxed like the rest of your pay, so what you keep depends on your band. See what a bonus is really worth at common salaries in 2026/27.

How much of a bonus you keep

Extra take-home for a bonus on top of your salary (England, Wales and NI, code 1257L, no other deductions). The percentage is the share of the bonus you keep.

Bonus kept after tax and NI (2026/27)
SalaryRate on next £1 (tax + NI)£1,000 bonus£5,000 bonus£10,000 bonus
£30,00028%£720 (72%)£3,600 (72%)£7,200 (72%)
£50,00028%£618 (62%)£2,938 (59%)£5,838 (58%)
£60,00042%£580 (58%)£2,900 (58%)£5,800 (58%)
£100,00062%£380 (38%)£1,900 (38%)£3,800 (38%)

The rate on your next pound

Income Tax plus employee National Insurance at each stage.

Combined marginal rates (2026/27)
StageTax + NI on next £1Pay range
Up to the higher-rate threshold28%Pay up to £50,270
Higher rate42%£50,270 to £100,000
Allowance taper62%£100,000 to £125,140
Additional rate47%Over £125,140

Watch the £100,000 line. Above £100,000 you lose £1 of Personal Allowance for every £2 of extra pay, so a bonus can be taxed at about 62% once National Insurance is included.

Cash bonus or pension contribution?

Compare taking a £5,000 bonus as cash with sacrificing it into a pension.

£5,000 bonus: cash vs salary sacrifice (2026/27)
SalaryCash you keepGoes into pension if sacrificedTake-home change if sacrificed
£30,000£3,600£5,000£0
£50,000£2,938£5,000£0
£60,000£2,900£5,000£0
£100,000£1,900£5,000£0

Sacrificing the whole bonus means no tax or employee National Insurance is taken, so the full £5,000 goes into your pension while your take-home is unchanged. The cost is that you cannot spend it until you reach pension age.

Frequently asked questions

Is a bonus taxed at 40% or 50%?

No. There is no special bonus rate. A bonus is added to your other pay and taxed at the rates for the band it lands in, so the same bonus is taxed at 20%, 40% or 45% depending on the rest of your income. National Insurance is added on top.

Why does my bonus payslip show so much tax?

Your employer taxes the bonus as part of the pay period it is paid in, and the tax code is worked out cumulatively across the year, so the payslip can look high in that month. Over the full year the total should match the annual calculation, but National Insurance is worked out per pay period, so a large one-off bonus can cost slightly more NI than the annual figure suggests.

How much of a £5,000 bonus do I keep?

It depends on your salary. On £30,000 you keep about £3,600, on £60,000 about £2,900 and on £100,000 about £1,900, because a bonus that pushes you into a higher band is taxed more.

Can I put my bonus into my pension?

Often yes. Sacrificing a bonus into a pension means no Income Tax or employee National Insurance is taken from it, so more of it is kept for you, although you cannot spend it until retirement. Check your employer’s scheme and the pension annual allowance (£60,000 for most people). See our pension guide.

Does a bonus affect my student loan?

Yes. Student loan repayments are based on pay subject to National Insurance, so a bonus increases the repayment when you are above your plan threshold. See student loan repayments.

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Disclaimer: This calculator gives estimates for general planning. Your real deductions depend on your tax code, pay period, employer pension scheme, benefits in kind (P11D) and student loan timing. See our methodology.