Bonus Tax Calculator 2026/27
How much of your bonus you keep in 2026/27 — income tax, NI, student loan and the child benefit charge, your true marginal rate, the 60% personal-allowance trap, what sacrificing part into your pension saves and the gross bonus needed to bank £10,000.
| Income tax on the bonus | — |
|---|---|
| National Insurance on the bonus | — |
| Student loan on the bonus | — |
| Child benefit charge triggered | — |
| Total deductions | — |
| Effective marginal rate on the bonus | — |
| Personal allowance lost | — |
| Sacrifice part into your pension | — |
| Bonus needed to bank a given amount | — |
| Marginal rate map | — |
In short
A bonus is taxed as ordinary income at your marginal rate: 28% (20% tax + 8% NI) for basic-rate taxpayers, 42% for higher-rate, 62% between £100,000 and £125,140 where the personal allowance is withdrawn, and 47% above — plus 9% for a student loan and the child benefit charge between £60,000 and £80,000. PAYE may over-withhold in the month it is paid and correct later. Sacrificing the bonus into your pension before payment avoids income tax and NI entirely.
Who this is for: UK employees expecting a bonus, especially those near £50,270, £60,000 or £100,000.
Marginal rates on a bonus in 2026/27
| Income band | Tax + NI | With a Plan 2 loan |
|---|---|---|
| £12,570 – £50,270 | 28% | 37% |
| £50,270 – £60,000 | 42% | 51% |
| £60,000 – £80,000 (2 children) | ≈ 54% | ≈ 63% |
| £80,000 – £100,000 | 42% | 51% |
| £100,000 – £125,140 | 62% | 71% |
| Over £125,140 | 47% | 56% |
- The 60% trap: between £100,000 and £125,140 every £2 of income removes £1 of personal allowance, so a £10,000 bonus costs £6,000 in tax plus £200 of NI.
- Child benefit charge: 1% of child benefit per £200 of income between £60,000 and £80,000 — for two children (£2,251 a year) that adds about 11% to the marginal rate.
- Escape routes: salary sacrifice the bonus into your pension (full tax and NI relief, employer NI saved), Gift Aid, or an electric-car salary sacrifice; deferring the bonus into a new tax year helps if next year's income will be lower.
- PAYE timing: a bonus paid in month 1 can be over-taxed under the cumulative system — it self-corrects through the year; a bonus in month 12 is taxed precisely.
See also: UK Take-Home Pay Calculator 2026/27.
Assumptions
- Deductions on the bonus = tax, NI, student loan and child benefit charge at (salary + bonus) minus the same at salary alone.
- Child benefit charge = 1% per £200 of income over £60,000 of the 2026/27 benefit (£26.05 + £17.25 per extra child per week).
- Pension sacrifice removes the sacrificed amount from all deductions; gross-up solved by bisection for £10,000 net.
Worked example
The bonus takes income from £95,000 to £110,000, crossing £100,000: £5,000 is taxed at 40% and £10,000 at an effective 60% (£5,000 of personal allowance lost). Income tax £8,000 + NI £300 = £8,300 of deductions — a 55.3% effective rate — leaving £6,700. Sacrificing the £10,000 above £100,000 into a pension would leave £2,900 in cash plus £10,000 in the pension: £12,900 of wealth instead of £6,700. To bank £10,000 net from a bonus at this salary you would need about £24,200 gross.
Frequently asked questions
Why is my bonus taxed so much?
It is added to your salary and taxed at your marginal rate — 42% for higher-rate taxpayers and 62% between £100,000 and £125,140 — and PAYE may over-withhold in the month it is paid, correcting later in the year.
How much of a £10,000 bonus do I keep?
About £7,200 as a basic-rate taxpayer, £5,800 as a higher-rate taxpayer, £3,800 in the £100,000–£125,140 zone and £5,300 above £125,140 — less with a student loan or the child benefit charge.
Can I avoid tax on a bonus?
Not avoid, but sacrificing it into your pension before it is paid means no income tax or NI, and most employers pass on some of their 15% NI saving. Within the annual allowance, it is the single biggest lever.
Does a bonus affect my tax code?
Not directly — but if it pushes you over £100,000 you lose personal allowance, which HMRC may recover through a lower code the following year.
Is a bonus taxed differently from salary?
No — it is just more salary in that period; only the timing of PAYE deductions differs.
Can I defer my bonus to next tax year?
If your employer agrees before it is paid and the deferral is genuine, it is taxed when received — useful if next year's income will be lower.
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