Bonus Tax

Bonus tax calculator — how much of your bonus you actually keep.

Bonus tax — 2026/27

Salary and bonus

Bonus sacrifice

A bonus is taxed as part of your annual pay. It can look over-taxed on the payslip because PAYE treats that month as unusually high, but across the year the total is what this shows.

Bonus you keep

£2,800

£2,200 goes in tax, NI and student loan — you keep 56p in the pound.

Bonus
£5,000
Deductions
£2,200
Kept per £1
56p

How much of each bonus size you keep

Share of each £1 of cash bonus you keep, on your salary. The dip is where salary and bonus together pass £100,000.

Rates and rules from Income Tax in Scotland (HM Revenue & Customs) and Tax codes (HM Revenue & Customs).

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Expert help

Turn your estimate into the right tax decision.

A calculator can model the numbers. Our accountants can check the assumptions, explain the options and handle the return or payroll work for you.

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Questions

Frequently asked
questions.

Why was my bonus taxed so heavily?

PAYE treats the bonus month as if you earned that much every month, so more falls into higher bands that month. Over the full year the tax evens out, and any overpayment is corrected later in the year or refunded.

Is a bonus taxed at a special rate?

No. There is no separate bonus tax; it is added to your pay and taxed at your normal Income Tax and National Insurance rates.

Can I put my bonus in my pension?

If your employer offers bonus sacrifice, you can have some or all of it paid into your pension before tax and NI. It must be agreed before the bonus is awarded.

Does a bonus affect Child Benefit?

Yes. It increases adjusted net income, which can trigger the High Income Child Benefit Charge above £60,000.

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