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Bonus Tax Calculator UK 2026/27
Free UK bonus tax calculator for 2026/27: income tax (PAYE, cumulative), National Insurance and student loan on a Christmas or annual bonus, what you keep, the extra PAYE gives back later and the £100,000 trap.
Your salary and bonus
Student loan
Bonus after tax
£1,484
| Bonus | £2,000 |
| Income tax on it | £400 |
| National Insurance on it | £116 |
| Total taken | £516 (25.8%) |
| Your December take-home pay | £3,877 |
For the whole tax year the bonus costs you £400 in income tax. National Insurance is worked out on each month on its own, so it is never adjusted later.
How it's worked out
- A bonus is paid through PAYE in the month you get it, with your normal tax code (1257L for most people).
- Income tax is cumulative: your pay so far this tax year, plus the bonus, is compared with your allowance and bands for the year so far.
- National Insurance and student loan are worked out on that month's pay only: 8% NI up to £4,189 a month, then 2%.
Rules for 2026/27, last checked October 2026. Estimate: assumes the same salary every month from April, the 1257L tax code, no salary sacrifice and no other income. Not legal, tax or financial advice. 🔒 Everything stays on your device.
✅ Rules last checked:
📚 Official sources: GOV.UK: tax on bonuses (PAYE) · GOV.UK: NI rates and thresholds
We build every tool from the official rules and re-check them when they change. Always confirm with the official source before you rely on a result.
🛠️ Spotted a mistake or an out-of-date rule? Tell us
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Questions people ask
How much tax do I pay on a bonus in the UK?+
The same as on your salary: your top income tax rate plus National Insurance. On £35,000, a £2,000 bonus costs £516 (you keep £1,484); on £60,000 it costs £840 (you keep £1,160).
Why was so much tax taken from my bonus?+
PAYE looks at your pay so far this tax year. A big bonus can push that month into the 40% band even if your yearly pay stays in the 20% band. The extra comes back automatically in your later payslips before April.
Is National Insurance on a bonus refunded?+
No. NI is worked out on each pay period on its own and never adjusted at the end of the year. In a big bonus month you pay 8% only up to about £4,189 and 2% above it.
Can I avoid tax on my bonus?+
You can ask to swap it for a pension contribution (bonus sacrifice). That saves income tax and NI, and is especially worth it if the bonus takes you over £100,000.