Bonus Tax Calculator
See exactly what your UK bonus is worth after tax. Enter your annual salary + bonus amount; the calculator applies Income Tax + NI + student loan deductions at your specific marginal rate and shows the net bonus you'll receive.
Bonus inputs
| Item | Amount |
|---|---|
| Gross bonus | — |
| Taxable bonus (after sacrifice) | — |
| Income Tax on bonus | — |
| NI on bonus | — |
| Student loan on bonus | — |
| Net bonus to you | — |
| Net pension contribution | — |
| Effective marginal rate on bonus | — |
How UK bonuses are taxed
Bonuses aren't taxed at a special "bonus rate" — they're taxed at your marginal rate, just like overtime. The marginal rate depends on where your total annual income (salary + bonus) sits in the UK tax bands:
Bonus net by band — per £1,000 of gross bonus
| Band | Marginal Income Tax + NI | Net per £1,000 bonus |
|---|---|---|
| Basic rate (under £50,270) | 28% | £720 |
| Higher rate (£50,271–£100k) | 42% | £580 |
| Allowance taper (£100k–£125,140) | 62% | £380 |
| Additional rate (£125,140+) | 47% | £530 |
Plus student loan if applicable: an additional 9% (or 6% PGL) on the bonus above your plan threshold.
The PAYE per-period spike
UK PAYE uses cumulative year-to-date calculations but bonuses cause a temporary spike in the month they're paid:
- The whole bonus is added to that month's earnings
- That month's PAYE might apply higher-rate to the bonus slice even if your annualised salary stays in basic rate
- Subsequent months rebalance via cumulative calculation
- The annual outcome matches the calculator's marginal-rate calculation
Sacrificing your bonus into pension
The single best tax-saving move on any bonus is to sacrifice some or all of it into your pension before it's paid:
- Sacrifice skips Income Tax + NI on the sacrificed amount
- The full bonus value goes to pension
- For a higher-rate earner sacrificing £5,000: ~£2,100 saved in tax + NI
- For someone in the £100k taper: ~£3,100 saved per £5,000 sacrificed
Must be arranged before the bonus is paid — check with HR. Once the bonus has been paid you can still contribute to pension personally but lose the NI saving.
FAQs
Is a UK bonus taxed at a higher rate than salary?
No — bonuses are taxed at your marginal rate (the rate that applies to additional earnings at your salary level). PAYE may temporarily over-deduct in the bonus month under the assumption it's a recurring monthly amount; the cumulative calculation usually rebalances within a few subsequent pay runs.
Can I sacrifice my bonus into pension?
Yes, and it's the most tax-efficient move. Sacrifice skips Income Tax + NI on the sacrificed amount. Must be arranged before the bonus is paid — check with HR.
Does my bonus affect my student loan?
Yes substantially in the bonus month. PAYE applies the per-period threshold — a big bonus pushes earnings well above the monthly threshold, triggering higher student loan deduction that month. Annual deduction unaffected; just timing.
What about a bonus pushing me into the 60% trap?
If your annual income would cross £100,000 due to the bonus, the slice between £100k–£125,140 is taxed at an effective 62%. Pension sacrifice keeps you below £100k and avoids this — extremely valuable.
Are signing bonuses taxed differently?
No — same treatment as any other bonus. Marginal rate, NI applicable. Some signing bonuses come with clawback clauses if you leave within a defined period — those don't affect the initial tax position.
Related calculators
- Take-Home Pay Calculator — full PAYE breakdown
- Salary Sacrifice Calculator — sacrifice the bonus into pension
- Pension Impact Calculator — pension % on take-home
- Overtime Calculator — marginal-rate maths on overtime
- Student Loan Calculator — bonus impact on SL deductions
Related guides
- Bonus tax guide — full guide to UK bonus taxation
- Salary sacrifice explained — sacrifice the bonus before payment
- Why does my take-home change? — PAYE cumulative explained