Tax ReceiptTax on a bonus: how much you keep
A bonus is taxed like the rest of your pay, but all of it lands on top of your salary. Enter both to see what you keep after income tax, National Insurance and any student loan.
Calculator
Of a £5,000 bonus on a £45,000 salary, you keep £3,874.
- Bonus you keep
- £3,87422.5% deducted
- Income tax
- £1,000
- National Insurance
- £126
- Student loan
- £0
What you keep of a bonus, by salary
| Salary | £1,000 bonus | £5,000 bonus | £10,000 bonus |
|---|---|---|---|
| £25,000 | £720 | £3,774 | £7,674 |
| £30,000 | £720 | £3,799 | £7,699 |
| £35,000 | £720 | £3,824 | £7,724 |
| £40,000 | £729 | £3,849 | £7,749 |
| £45,000 | £754 | £3,874 | £6,828 |
| £50,000 | £633 | £2,953 | £5,853 |
| £60,000 | £580 | £2,900 | £5,800 |
| £70,000 | £580 | £2,900 | £5,800 |
| £80,000 | £580 | £2,900 | £5,800 |
| £95,000 | £580 | £2,900 | £4,800 |
| £110,000 | £380 | £1,900 | £3,800 |
| £130,000 | £530 | £2,650 | £5,300 |
England, Wales and Northern Ireland, tax code 1257L, no student loan or pension, bonus paid in a single month with the rest of the salary paid evenly.
How the tax on a bonus is worked out
Income tax is the extra tax on your salary plus the bonus over the whole tax year, compared with your salary alone. Payroll may take more or less in the bonus month itself, but PAYE is cumulative, so by the end of the tax year you pay this amount.
National Insurance is worked out on the month the bonus is paid: 8% on monthly pay between £1,048 and £4,189, and 2% above. A large bonus month is mostly over £4,189, so much of the bonus pays 2% rather than 8%.
Student loan repayments are also worked out on the month alone, against the monthly threshold.
Your bonus pays for public services in the same way as the rest of your tax. See where your tax goes.
Frequently asked questions
Is a bonus taxed at a higher rate?
No. A bonus is taxed as part of your pay at the same rates as your salary. It can feel heavier because it sits on top of your salary, so all of it is taxed at your highest rate, and because the month it is paid can push part of your pay into a higher band for that month.
How much tax will I pay on a £5,000 bonus?
On a £45,000 salary in England, Wales or Northern Ireland, a £5,000 bonus costs £1,000 in income tax and £126 in National Insurance, so you keep £3,874. Above £50,270 you keep less, because the bonus is taxed at 40%; the table on this page shows other salaries.
Why is so much tax taken from my bonus month?
Income tax under PAYE is cumulative: payroll compares your pay so far this tax year with your allowances so far. A big month can be taxed at a higher rate for that month, but it evens out over the year as long as your tax code is right. National Insurance and student loan are worked out on each month alone, so they do not even out.
Can I avoid tax on my bonus?
Some employers let you sacrifice a bonus into your pension before it is paid. You then pay no income tax or National Insurance on it, though it is locked away until pension age. This is most valuable if the bonus would take you over £100,000, where the Personal Allowance is withdrawn.
Does a bonus affect my student loan?
Yes. Repayments are taken from the month the bonus is paid at 9% of pay over the monthly threshold (6% for a postgraduate loan). Because each month is worked out on its own, a bonus can mean you repay more than if the same money were spread over the year.
Sources
- GOV.UK, Income Tax rates and Personal Allowances and Income Tax in Scotland
- HMRC, Rates and thresholds for employers 2026 to 2027 (monthly National Insurance and student loan thresholds)
- GOV.UK, Repaying your student loan: what you pay