Sacrificing your bonus into pension saves £3,962.20 in tax & NI. Your employer saves £1,500.00 in employer NI (which they may contribute to your pension).
Gross Bonus
£10,000.00
per year
£833.33 per month
Net Bonus (Take-Home)
£6,037.80
per year
£503.15 per month
Total Gross Income
£60,000.00
Annual Net Pay
£43,557.40
Annual Income Tax
£10,232.00
Annual NI
£3,210.60
Item
% of Total
Annually (£)
Monthly (£)
Weekly (£)
Daily (£)
Gross Bonus
100%
10,000.00
10,000.00
2,500.00
333.33
Pension Contribution
5%
500.00
500.00
125.00
16.67
Income Tax (marginal)
32%
3,246.00
3,246.00
811.50
108.20
National Insurance
2%
216.20
216.20
54.05
7.21
Net Bonus
60%
6,037.80
6,037.80
1,509.45
201.26
Smart Tips
⚠️
Income above £50,000 triggers the High Income Child Benefit Charge (HICBC) if you or your partner claim Child Benefit. You repay 1% of the benefit for every £200 over £50,000.
💡
You're in the 40% Higher Rate tax band. Consider salary sacrifice pension contributions to reduce your taxable income — every £1 into pension saves 40p in tax plus 8p in NI.
Bonus Calculator After Tax — How Much Will You Actually Receive?
When your employer announces a bonus, the figure quoted is always the gross amount — before any deductions. Using a bonus calculator after tax gives you the true picture of what lands in your bank account. In the UK, bonuses are treated as employment income and are subject to both Income Tax and National Insurance (NI) in the same pay period they are received. The exact amount you keep depends on your existing salary, your tax code, and whether the bonus pushes you into a higher tax band. Our calculator applies the correct marginal rate method — the same approach HMRC uses — so you get an accurate net figure rather than a rough estimate. Simply enter your gross salary, bonus amount, and any pension contributions to see your take-home bonus instantly.
Bonus Calculator After Tax UK — 2025/26 HMRC Rates
The UK tax system for 2025/26 uses a Personal Allowance of £12,570, meaning the first £12,570 of your annual income is tax-free. Income between £12,571 and £50,270 is taxed at the Basic Rate of 20%, with Employee National Insurance at 8% on the same band. Income above £50,270 is taxed at the Higher Rate of 40%, with NI dropping to 2%. Above £125,140, the Additional Rate of 45% applies. This bonus calculator after tax UK uses all current 2025/26 HMRC thresholds and also supports Scottish income tax bands, which differ significantly — Scottish taxpayers face a Starter Rate of 19%, Intermediate Rate of 21%, Higher Rate of 42%, and an Advanced Rate of 45% before the Top Rate of 48% kicks in above £125,140. Select your region above to get the correct calculation.
Bonus Calculator UK — Understanding Marginal Rate Taxation
A common misconception is that a bonus is taxed at a flat rate. In reality, this UK bonus calculator applies the marginal rate method: your bonus is added on top of your annual salary, and only the portion that falls within each tax band is taxed at that band's rate. For example, if your salary is £45,000 and you receive a £10,000 bonus, the first £5,270 of the bonus is taxed at 20% (Basic Rate) and the remaining £4,730 is taxed at 40% (Higher Rate). This blended calculation is what HMRC applies through PAYE, and it is why the deduction on a bonus can feel surprisingly large. Our bonus calculator UK handles all of this automatically, including the interaction with your pension contributions and student loan repayments.
Bonus Calculator Tax — Income Tax and National Insurance Explained
Two separate deductions reduce your gross bonus: Income Tax and National Insurance (NI). Income Tax is calculated at your marginal rate — 20%, 40%, or 45% depending on your total income. Employee NI is charged at 8% on earnings between £12,570 and £50,270, and at 2% on earnings above £50,270. There is no NI on earnings below the Primary Threshold of £12,570. The table below summarises the combined deduction rates for the most common bonus scenarios in 2025/26:
Salary + Bonus Range
Income Tax Rate
NI Rate
Combined Deduction
Up to £12,570
0%
0%
0%
£12,571 – £50,270
20%
8%
28%
£50,271 – £100,000
40%
2%
42%
£100,001 – £125,140 (PA taper)
40% + 20% taper
2%
Up to 62%
Above £125,140
45%
2%
47%
Bonus Calculator UK Tax — The £100k Personal Allowance Trap
One of the most important scenarios this UK bonus tax calculator handles is the £100,000 Personal Allowance taper. For every £2 your income exceeds £100,000, HMRC withdraws £1 of your £12,570 Personal Allowance. By £125,140, the allowance is completely gone. This creates an effective marginal rate of 60% on income between £100,000 and £125,140 — you pay 40% Higher Rate tax on the income itself, plus an additional 20% on the lost allowance. If your salary is near £100,000, a bonus could push you into this zone and cost you significantly more than you might expect. The calculator will flag this automatically and suggest a pension salary sacrifice strategy to bring your adjusted net income below £100,000, potentially saving thousands of pounds.
Bonus Calc — Quick Reference for Common Bonus Amounts
For a quick bonus calc, the table below shows approximate net take-home for common bonus amounts at a £35,000 and £55,000 salary (England/Wales, no student loan, no pension, 2025/26). Use the calculator above for your exact figures.
Gross Bonus
Net (£35k salary)
Net (£55k salary)
£1,000
£720
£580
£2,500
£1,800
£1,450
£5,000
£3,600
£2,900
£10,000
£7,200
£5,800
£20,000
£14,400
£11,600
£50,000
£34,200
£29,000
Bonus Calculation Formula — Step-by-Step Worked Example
The UK bonus calculation formula follows these steps. Take a worked example: £45,000 salary + £10,000 bonus, England/Wales, no student loan, no pension contribution.
The effective deduction rate on this bonus is 34.6% — higher than the standard Basic Rate because part of the bonus crosses into the Higher Rate band. Use the calculator above to model your exact scenario.
Bonus Calculator Take Home — How to Keep More of Your Bonus
There are several legitimate strategies to maximise your bonus take-home pay in the UK:
Salary Sacrifice into Pension
Directing your bonus into a pension via salary sacrifice reduces your taxable income pound-for-pound and avoids National Insurance entirely. At the Basic Rate, every £100 bonus into pension costs only £72 in take-home. At the Higher Rate, it costs just £58. Your employer also saves on Employer NI, which many employers pass on as an additional contribution.
Pension Contributions to Escape the £100k Trap
If your salary plus bonus exceeds £100,000, pension contributions can bring your adjusted net income below the taper threshold, restoring your Personal Allowance and saving up to 60p in the pound. This is one of the most tax-efficient strategies available to UK higher earners.
Timing Your Bonus
If you have flexibility over when your bonus is paid, receiving it in a tax year where your income is lower can reduce the marginal rate applied. For example, if you are changing jobs or taking a career break, deferring a bonus to the following April could save significant tax.
ISA Contributions
While ISA contributions do not reduce the tax on your bonus directly, investing your net bonus into a Stocks & Shares ISA shelters future growth and income from tax entirely. The annual ISA allowance is £20,000 per person, and all returns within an ISA are free from Income Tax and Capital Gains Tax.
Frequently Asked Questions
How is a bonus taxed in the UK?
A bonus is taxed as employment income in the UK. HMRC adds your bonus on top of your annual salary to determine the marginal tax rate. You pay Income Tax at 20%, 40%, or 45% depending on your total income, plus Employee National Insurance at 8% (up to £50,270) or 2% (above £50,270). The combined deduction for a Basic Rate taxpayer is 28%, and 42% for a Higher Rate taxpayer.
Does my employer deduct tax from my bonus automatically?
Yes. Your employer deducts Income Tax and National Insurance from your bonus through PAYE (Pay As You Earn) in the same payslip it is paid. The deduction is calculated at your marginal rate — the rate that applies to the top slice of your income — which is why a bonus can appear to be taxed more heavily than your regular salary.
Can I reduce the tax on my bonus with a pension contribution?
Yes. Contributing your bonus to a pension via salary sacrifice reduces your taxable income and avoids National Insurance entirely. At the Basic Rate (20% tax + 8% NI), every £100 into pension saves £28. At the Higher Rate (40% tax + 2% NI), every £100 saves £42. If you are in the £100k–£125,140 taper zone, the saving can reach 62p per pound.
Is there a bonus calculation formula I can use?
The formula is: Net Bonus = Gross Bonus − Income Tax (at marginal rate) − Employee NI − Student Loan (if applicable) − Pension Contribution. The marginal rate is found by calculating tax on (salary + bonus) and subtracting the tax on salary alone. Our calculator does this automatically using the latest 2025/26 HMRC rates.
How does the bonus calculator work for Scotland?
Scottish taxpayers pay different income tax rates set by the Scottish Parliament. The bands for 2025/26 are: Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), and Top (48%). National Insurance rates are the same across the UK. Select 'Scotland' in the Tax Region dropdown above to apply the correct Scottish rates to your bonus calculation.
What is the bonus take-home pay for a £10,000 bonus on a £50,000 salary?
On a £50,000 salary with a £10,000 bonus (England/Wales, no pension, no student loan), your total income is £60,000. The bonus is entirely in the Higher Rate band (40% tax + 2% NI = 42% combined). Your net bonus is approximately £5,800. Use the calculator above to model your exact scenario including pension contributions and student loan.