How much of my bonus will I keep after tax?

Updated for 2026/27 · No signup · Estimate only, not financial advice

Your bonus is taxed exactly like extra salary in that pay period, so it's added on top of your normal pay and taxed at your marginal rate. For a basic-rate taxpayer this usually means keeping around 68-70% of the bonus after Income Tax and National Insurance.

Why bonuses feel more heavily taxed

A bonus is added to your normal pay for that period, which can push part of it into a higher tax band even if your usual salary doesn't reach that band. This is why a £5,000 bonus can feel like it's taxed at 50%+ in that one payslip — it isn't a bonus-specific tax rate, it's your marginal rate applied to the extra income.

Worked example

On a £35,000 salary with a £3,000 bonus, a basic-rate taxpayer keeps roughly £2,040 of the bonus after Income Tax (20%) and National Insurance (8%) — about 68%.

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FAQ

Is a bonus taxed at a higher rate than salary?

No — there's no special bonus tax rate. It's taxed at your normal marginal rate, but because it's added to that period's pay, it can push part of it into a higher band, making the deduction feel larger.

Can I reduce tax on my bonus?

Sacrificing some or all of your bonus into your pension is the main legal way to reduce the tax and NI due, since pension contributions are usually taken before tax.

Will my bonus tax even out over the year?

Often yes — PAYE recalculates based on your year-to-date earnings, so if a bonus pushes you into overpaying tax in one month, it's frequently corrected in later payslips.