United Kingdom · Updated for 2026/27
Bonus tax calculator 2026/27
Of a £5,000 bonus on a £45,000 salary, you keep £3,873.66: £1,000.00 goes in income tax and £126.34 in National Insurance. In December, the month it is paid, PAYE takes £1,209.50 of extra tax, £209.50 more than the year needs; you get that back in the months after.
Type your salary, the bonus and the month it is paid in.
£5,000 bonus on £45,000 · paid in December
£3,873.66 of the bonus is yours
77.5% of it. Income tax £1,000.00, NI £126.34.
Your payslip in the bonus month
| Ordinary month | Bonus month | |
|---|---|---|
| Pay | £3,750.00 | £8,750.00 |
| Income tax | −£540.50 | −£1,750.00 |
| National Insurance | −£216.16 | −£342.50 |
| Take-home | £2,993.34 | £6,657.50 |
Month by month (PAYE, tax code 1257L)
| Pay | Income tax | NI | Take-home | |
|---|---|---|---|---|
| April | £3,750.00 | £540.50 | £216.16 | £2,993.34 |
| May | £3,750.00 | £540.50 | £216.16 | £2,993.34 |
| June | £3,750.00 | £540.50 | £216.16 | £2,993.34 |
| July | £3,750.00 | £540.50 | £216.16 | £2,993.34 |
| August | £3,750.00 | £540.50 | £216.16 | £2,993.34 |
| September | £3,750.00 | £540.50 | £216.16 | £2,993.34 |
| October | £3,750.00 | £540.50 | £216.16 | £2,993.34 |
| November | £3,750.00 | £540.50 | £216.16 | £2,993.34 |
| December | £8,750.00 | £1,750.00 | £342.50 | £6,657.50 |
| January | £3,750.00 | £452.67 | £216.16 | £3,081.17 |
| February | £3,750.00 | £452.67 | £216.16 | £3,081.17 |
| March | £3,750.00 | £506.67 | £216.16 | £3,027.17 |
PAYE: £7,486.00 of income tax in the year, exactly the tax for the year.
How is a bonus taxed?
Like the rest of your pay. It goes through payroll in the month it is paid, and income tax, National Insurance and any student loan come off. What you keep depends on where the bonus takes your pay for the year: in the basic-rate band you keep most of it, above the higher-rate threshold less, and above £100,000 much less. The calculator works out the year with and without the bonus, through the same engine as our salary calculator.
Why does the bonus month look over-taxed?
PAYE adds up your pay for the tax year so far and gives you the same share of the year’s tax-free allowance and tax bands: by December, 9 twelfths. A large bonus can take that month’s pay to date over the higher-rate line even when your pay for the year won’t be. On £45,000 with a £5,000 bonus in December, the bonus month’s tax is £1,750.00 against £540.50 in an ordinary month. The months after then take a little less, and by the end of the tax year the total is right. National Insurance is different: it is worked out on each month alone, and above the upper limit it drops to a lower rate, so a bonus often pays less NI than the same money spread over the year.
What is the 60% tax trap?
Between £100,000 and £125,140 of income you lose £1 of your Personal Allowance for every £2 you earn, so each extra £1 costs 40p of tax plus 20p more as the allowance shrinks: 60% in all, plus National Insurance. A £10,000 bonus on £95,000 leaves you just £4,800.00 of it. PAYE with a normal code doesn’t take the lost allowance off during the year, so £1,000.00 of that is collected later, through a new tax code or Self Assessment. Our guide to the 60% trap explains it in full, and the pay rise calculator shows the same effect on a rise.
What else can I work out?
- Pay rise calculator The extra take-home from a rise, and how much of it goes in tax, NI and loans.
- Salary sacrifice calculator Pension by salary sacrifice, net pay or relief at source: take-home and pension compared.
- Student loan repayment calculator Your monthly repayment, and whether the loan is paid off or written off, and when.
- Salary calculator Take-home pay on any salary, with tax codes, Scotland, pensions and student loans.
Every UK tool on one page: salary and tax tools. How the rules work: UK pay and tax guides.
Questions about bonus tax
Is a bonus taxed more than my salary?
No. A bonus is taxed at the same rates as the rest of your pay. The month it is paid can look heavily taxed, because PAYE works the month out as if your pay were that high all year so far, but it evens out.
How much of a £10,000 bonus will I keep?
On a £45,000 salary, £6,827.66 (68.3%). Part of it is over the higher-rate threshold, where income tax is 40%. With a student loan, 9% more comes off.
Why was my bonus taxed at 40%?
Each month PAYE gives you a share of the year’s tax bands. A big month can push part of the pay into the higher rate even if your pay for the whole year stays in the basic rate. If it does, you pay less tax in the months that follow.
Will I get the extra tax back?
With a normal tax code, yes, through lower tax in the rest of the tax year. With an emergency code (ending W1, M1 or X), each month is taxed on its own, so it doesn’t even out: ask HMRC to correct your code, or claim the overpayment after the tax year ends.
How can I avoid the 60% tax trap on a bonus?
Paying some of the bonus into your pension lowers the income that counts for the £100,000 limit. Many employers let you sacrifice a bonus straight into your pension. The salary sacrifice calculator compares the ways of paying in. This is not advice.