UK Bonus After Tax Calculator 2025/26

UK bonuses are taxed as earned income through PAYE — the same as your salary. There's no separate bonus tax rate. Your employer adds the bonus to your regular pay for that period, so the combined amount determines which tax band applies. If a large bonus pushes your total income above £50,270, the portion above that threshold is taxed at 40% rather than 20%.

Yes. The most effective strategy is to sacrifice your bonus into a pension (if your employer allows it). Pension salary sacrifice removes the bonus from your taxable income entirely, saving income tax AND National Insurance. If your total income (including bonus) falls in the 40% band or the 60% trap zone (£100k–£125,140), pension sacrifice can save up to 60p per pound.

It depends on your total income. Basic rate taxpayers (income below £50,270) pay around 32% on their bonus (20% tax + 12%→8% NI rate). Higher rate taxpayers pay around 48% (40% + 8% NI). In the 60% trap zone (£100k–£125,140), the effective rate reaches 60%.

Yes. Employee National Insurance applies to bonuses at the same rate as salary: 8% on earnings between £12,570 and £50,270, and 2% above that.

Bonuses are taxed in the tax year they are paid, not earned. If a bonus is delayed to the next tax year, it will be assessed against that year's income. This can be advantageous if you expect lower income in the next tax year.