Bonus Tax Calculator
Bonuses are taxed as part of your normal salary, which can push some of it into a higher tax band. Enter your salary and bonus to see exactly how much you'll take home.
Your results
This bonus is taxed at an estimated marginal rate of 42.0%, based on the top of your income for the year.
| Deduction on bonus | Amount |
|---|---|
| Bonus amount | £5,000.00 |
| Income Tax on bonus | −£1,700.00 |
| National Insurance on bonus | −£400.00 |
| Student Loan on bonus | £0.00 |
| Net bonus | £2,900.00 |
Estimates only. Assumes the bonus is paid within the same tax year as the salary entered and taxed via normal PAYE. Not financial advice.
How bonus tax is calculated
We calculate your take-home pay on your salary alone, then again with your bonus added on top. The difference between the two is the actual Income Tax, National Insurance and student loan impact of the bonus — because it's added on top of your existing income, it's taxed at your marginal (highest) rate rather than starting again from your Personal Allowance.
Frequently asked questions
Is my bonus taxed at a higher rate than my salary?
There's no special "bonus tax" rate. A bonus is simply added to your other income for the year and taxed using the same Income Tax bands, National Insurance rates and student loan rules as the rest of your salary.
Can my bonus push me into a higher tax bracket?
Yes. Because a bonus is added on top of your salary, it can push some or all of it into a higher Income Tax band than the rest of your pay, which is often why a bonus feels more heavily taxed than expected.
Does a bonus affect my student loan repayments?
Yes. Student loan repayments are based on total income above your plan's threshold for the year, so a bonus that pushes your income higher increases the amount repaid, in the same way it does for Income Tax and National Insurance.