UK Bonus Calculator
Calculate Your Bonus Take-Home Pay
Work out exactly how much you'll keep from your bonus after tax, National Insurance, and other deductions. Uses verified 2026/27 UK tax rates including the 60% tax trap.
Why Use This Bonus Calculator?
Most online bonus calculators use outdated tax rates or oversimplified calculations. This calculator uses the official 2026/27 tax year data and handles complex scenarios that catch many people by surprise.
60% Tax Trap: If your salary plus bonus pushes you over £100,000, you'll lose Personal Allowance at a rate of £1 for every £2 earned. This creates an effective tax rate of around 60% on earnings between £100,000-£125,140.
Scottish Tax Rates: Scotland has different income tax bands than the rest of the UK. A £5,000 bonus can be taxed differently depending on whether you live in Scotland or elsewhere, with Scottish higher rate starting at £43,663 (compared to £50,270 in the rest of the UK).
National Insurance Per-Period: Unlike income tax (calculated annually), National Insurance is calculated per pay period. This means bonus payments often cross the upper earnings limit within a single month, affecting the final calculation.
How Bonus Tax Works in the UK
Your bonus is added to your annual salary to determine which tax bands apply. The calculation follows these steps:
1. Personal Allowance Check: If your total income (salary + bonus) exceeds £100,000, your £12,570 Personal Allowance reduces by £1 for every £2 over the threshold. This is completely removed at £125,140.
2. Income Tax Bands: After deducting your Personal Allowance, the remaining income is taxed at progressive rates. In England, Wales, and Northern Ireland: 20% (basic), 40% (higher), and 45% (additional rate).
3. National Insurance: Calculated separately on your gross bonus at 8% (if under £50,270 total annual earnings) or 2% (if above). The calculation uses your pay frequency and cumulative earnings for the year.
4. Additional Deductions: Student loan repayments, High Income Child Benefit Charge, and pension contributions (if applicable) are then calculated on the gross bonus amount.
Common Bonus Tax Scenarios
Basic Rate Taxpayer (£30k salary + £3k bonus): Your bonus will be taxed at 20% income tax plus 8% National Insurance, giving you an effective rate of around 28% on the bonus.
Higher Rate Band Crossing (£35k salary + £5k bonus): Part of your bonus pushes you into the 40% tax band. You'll pay 20% on the first portion and 40% on the remainder, plus National Insurance.
The 60% Trap (£95k salary + £10k bonus): Your bonus pushes you into the Personal Allowance taper zone. You'll lose £5,000 of Personal Allowance, creating an effective tax rate of around 62% on the bonus portion above £100k.
Scotland vs England (£40k + £5k bonus): In Scotland, you'll hit the 42% higher rate band. The same bonus would be taxed at 20% basic rate in England, making Scottish bonuses significantly more expensive.
Pension Sacrifice Strategy
Many employers offer bonus sacrifice schemes where you can redirect some or all of your bonus into your pension. This can be highly tax-efficient, especially for higher-rate taxpayers.
Tax Savings: Pension contributions are made before tax and National Insurance, so you save at your marginal rate. A £5,000 bonus sacrifice could save you £2,000+ in tax and NI if you're a higher-rate taxpayer.
Employer NI Rebate: Your employer saves 15% National Insurance on sacrificed amounts. Many employers share this saving with you, adding extra value to your pension pot.
Annual Allowance: You can typically contribute up to £60,000 per year to your pension (including employer contributions) and carry forward unused allowance from previous years.
Data Sources & Verification
All calculations use official HMRC data for the 2026/27 tax year. The calculator is verified against worked examples and updated quarterly to reflect any mid-year changes.
Tax rates, National Insurance thresholds, and student loan repayment rates are sourced directly from GOV.UK publications. The calculator handles edge cases like the Personal Allowance taper and per-period National Insurance calculations that simpler tools often miss.
Last verified: 17 May 2026
Tax year: 2026/27 (6 April 2026 - 5 April 2027)
Data sources: HMRC, GOV.UK official publications
Sources:
[1] HMRC Tax Rates and Thresholds 2026/27 (accessed 2026-05-17)
[2] National Insurance Contributions Rates 2026/27 (accessed 2026-05-17)
[3] Student Loan Repayment Rates and Thresholds 2026/27 (accessed 2026-05-17)