How is a Bonus Taxed?

Bonuses and overtime are taxed at your marginal rate — the rate that applies to the next pound you earn. This is why bonuses feel heavily taxed. They're added on top of your salary and taxed at whatever band that pushes you into.

Marginal Tax Rates 2025/26

Salary Range	Income Tax	NI	Combined Marginal Rate
£12,571 – £50,270	20%	8%	28%
£50,271 – £100,000	40%	2%	42%
£100,001 – £125,140	60%*	2%	62%
£125,141+	45%	2%	47%

*Between £100,000 and £125,140, you lose £1 of personal allowance for every £2 earned, creating an effective 60% income tax rate on that band.

The £100k Trap

If your salary plus bonus takes you over £100,000, you'll hit the 62% marginal rate due to the personal allowance taper. A £5,000 bonus at this level would cost you £3,100 in tax and NI, leaving just £1,900. Consider salary sacrifice pension contributions to stay below £100k. Use our salary calculator to model this.

What This Calculator Does

This calculator shows how much tax and National Insurance you'll pay on a bonus in the 2025/26 tax year, so you can see your actual take-home amount. It is designed for employees receiving a one-off or annual bonus payment.

How the Calculation Works

Bonuses are taxed as part of your total annual income. The calculator adds your bonus to your salary, applies income tax bands and NI thresholds, then subtracts the tax you'd pay without the bonus to show the marginal tax on your bonus alone.

Common Scenarios

On a £40,000 salary, a £5,000 bonus would lose roughly £1,600 to tax and NI (32%). Higher-rate taxpayers on £60,000+ would lose around 42% of a bonus. Salary sacrifice into a pension before the bonus is paid can reduce the tax hit.

Related Calculators

You might also find these useful: Pension, Salary Sacrifice, Pay Rise. Or use our main salary calculator for a complete take-home pay breakdown.