Bonus Tax Calculator 2026/27
Your bonus month always looks over-taxed. It usually is not — PAYE just taxes that month as if you earned that much every month. See both figures: the month, and the year.
- Rates: GOV.UK — checked 5 Nov 2026
- Tested against HMRC worked examples
- Your salary never leaves your browser
Assumes the usual auto-enrolment pension (5% of qualifying earnings) and that pension is taken on the bonus. Some employers do not pension bonuses — see the note below.
Your bonus, over the whole year
— extra take-home / year
- In the bonus month
- —
- Bonus month take-home
- —
- You keep
- —
Bonus month — what happens in the month you get the bonus
| Pay in the bonus month | — |
|---|---|
| Income tax in the bonus month | — |
| National Insurance in the bonus month | — |
| Pension in the bonus month | — |
| Normal month take-home | — |
Full year — your total tax, NI and take-home for the year including the bonus
Why the two views differ: PAYE taxes the bonus month as if you earned that much every month, so the bonus month can look more heavily taxed than the year really is. The full-year view below is the true figure — the extra tax taken in the bonus month is usually corrected in your later payslips.
| Total pay for the year (salary + bonus) | — |
|---|---|
| Income tax for the year | — |
| National Insurance for the year | — |
| Pension for the year | — |
| Student loan for the year | — |
| Take-home pay for the year | — |
We could not load the 2026/27 rates. Please check your connection and refresh the page.
Rates checked 5 November 2026.
Every figure checked against HMRC's own examples.
Your salary never leaves your browser.
Rates re-checked by hand after every Budget.
Rates: GOV.UK — last checked 5 November 2026 See the official rates
Why the bonus month looks over-taxed
PAYE is worked out month by month. In your bonus month, HMRC's system sees one month's pay and taxes it as if you earned that much every month of the year. A £2,000 bonus on a £35,000 salary makes that month look like a £59,000-a-year salary — so part of the month is taxed at 40% even though your yearly pay never leaves the 20% band. The extra tax is not lost: PAYE is cumulative, so the over-deduction is corrected in your later payslips, and anything still overpaid at 5 April is reconciled by HMRC. The two numbers that matter are in the box above: what lands in the bonus month, and what the bonus is worth over the whole year.
Examples — bonuses at two salaries
| Salary + bonus | Bonus month take-home | Extra in the month | Extra over the year | Take-home for the year (salary + bonus) | Tax over-deducted in the month |
|---|---|---|---|---|---|
| £35,000 + £2,000 bonus | £3,654.60 (normally £2,297.43) | £1,357.17 | £1,360.00 | £28,929.20 (tax £4,578.40, NI £1,954.40) | £138.20 |
| £50,000 + £5,000 bonus | £6,086.43 (normally £3,147.43) | £2,939.00 | £3,367.30 | £41,136.50 (tax £8,551.40, NI £3,110.60) | £455.58 |
Auto-enrolment pension at 5% of qualifying earnings, no student loan. The £35,000 + £2,000 row is the worked example behind the calculator: extra tax in the bonus month £518.20 against a true annual extra tax of £380.00.
Questions
Why was my bonus taxed at 40%?
Usually it was not — not really. PAYE taxes each month as if you earned that much every month. A £2,000 bonus on a £35,000 salary makes that month look like a £59,000 salary, so part of it is taxed at 40%. Over the full year the bonus is only worth £380.00 of extra tax, but the bonus month takes £518.20 — the £138.20 difference comes back through your later payslips as the cumulative tax code catches up.
How much of a £2,000 bonus do I actually keep?
On a £35,000 salary with the usual auto-enrolment pension, a £2,000 bonus adds £1,360.00 to your take-home over the year — £1,357.17 of it lands in the bonus month itself, and the remaining £2.83 follows through later PAYE corrections. You keep 68% of the bonus.
Will HMRC refund the extra tax on my bonus?
Usually you do not need to ask. PAYE is cumulative: the over-deduction in the bonus month is corrected automatically in later months of the same tax year, because your tax code spreads the allowance across the year. If you leave the job or the year ends with tax still overpaid, HMRC reconciles it and repays you — check your Personal Tax Account.
Is a bonus pensionable?
It depends on your employer's scheme — many do not take pension on bonuses. This calculator assumes pension is taken on the bonus (5% of qualifying earnings, as the main calculator does). If your employer does not pension bonuses, your annual extra take-home is slightly higher: on a £2,000 bonus at £35,000, £1,440.00 instead of £1,360.00.
Is my pay sent anywhere?
No. The calculator runs entirely in your browser. No figure you enter is sent to a server, stored, or shared.
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Take-home pay calculator · Overtime calculator · Pay rise calculator · Employer cost calculator · What a £2,000 pay rise really puts in your pocket · Why was my bonus taxed at 40%? · 2026/27 rates