Bonus Tax Calculator UK
2025/26 Tax Year • Accurate NI & Income Tax
How Payments Work
- Regular salary taxed progressively across bands: Personal Allowance up to £12,570 tax-free, then 20% basic rate to £50,270.
- Bonuses added to salary, potentially pushing into higher 40% rate; marginal rate can reach 42% including NI.
- National Insurance at 8% on earnings £12,571-£50,270, 2% above; no NI on first £12,570.
- Pension relief reduces taxable income before tax calculation; student repayments 9% above thresholds.
- Scotland uses separate bands: Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Top 45%.
Tax Band Details
| Band | England/Wales/NI Range | Rate | Scotland Range | Scotland Rate |
|---|---|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% | £0 – £12,570 | 0% |
| Basic | £12,571 – £50,270 | 20% | £12,571 – £15,397 | 19% |
| Intermediate/Higher | – | – | £15,398 – £26,561 | 21% |
| Higher | £50,271 – £125,140 | 40% | £26,562 – £43,662 | 42% |
| Advanced | – | – | £43,663 – £75,000 | 45% |
| Additional/Top | Over £125,140 | 45% | Over £75,000 | 48% |
Thresholds for 2025/26 tax year from HMRC announcements.
Common Scenarios
| Salary | Bonus | Total Gross | Tax+NI Rate on Bonus | Net Bonus |
|---|---|---|---|---|
| £35,000 | £5,000 | £40,000 | 32% | £3,400 |
| £45,000 | £10,000 | £55,000 | 42% | £5,800 |
| £60,000 | £20,000 | £80,000 | 47% | £10,600 |
| £100,000 | £50,000 | £150,000 | 52% | £24,000 |
Illustrative effective rates; actual varies by exact position in bands and deductions.
Frequently Asked Questions
- Does bonus affect my tax code?
- Tax code applies to total pay; bonuses use same code but fill bands faster.
- Can I choose when to take bonus?
- Timing impacts band usage; spreading may lower overall rate but consult employer.
- What if bonus pushes me over threshold?
- Personal Allowance tapers above £100,000; full loss at £125,140.
- Are bonuses always taxed same as salary?
- Yes, treated as employment income subject to PAYE.
- Student loan on bonus?
- Yes, 9% above plan threshold on total earnings.
References
HM Revenue & Customs. (2024). Rates and allowances: Income Tax and National Insurance. GOV.UK.
HM Revenue & Customs. (2025). Scottish Income Tax. Scottish Government collaboration with HMRC.
Institute for Fiscal Studies. (2024). The effect of bonuses on marginal tax rates. IFS Briefing Note BN302.
HM Revenue & Customs. (2024). Employment Income Manual: Bonuses and other payments. EIM43200.