Answers · UK 2025/26
How much tax do I pay on a £1,000 bonus in the UK?
It depends on your salary. A basic-rate taxpayer keeps about £720 of a £1,000 bonus (28% lost to 20% tax and 8% NI). A higher-rate taxpayer keeps about £580 (42% lost), and an additional-rate taxpayer about £530 (47% lost).
Full answer
A bonus is treated as ordinary earnings for 2026/27, so it is taxed at your marginal rate plus National Insurance, on top of whatever your salary already uses up of the basic and higher rate bands. For a basic-rate taxpayer the bonus is taxed at 20% Income Tax and 8% NI, a 28% deduction, so you keep £720 of £1,000. For a higher-rate taxpayer the bonus is taxed at 40% plus 2% NI (NI drops to 2% above the £50,270 Upper Earnings Limit), a 42% deduction, leaving £580. For an additional-rate taxpayer it is 45% plus 2% NI, a 47% deduction, leaving £530. Even a small bonus like this can be over-taxed by PAYE in the month it is paid, because payroll software annualises that month's pay to work out the tax band -- this usually corrects itself later in the tax year through your normal pay or via a small refund. If your salary already sits close to a band boundary, such as just below the £50,270 higher-rate threshold, a £1,000 bonus could push part of it into the next band, so the effective deduction may be a blend of the two percentages above rather than a single flat rate. Use the Bonus calculator to see your exact take-home based on your actual salary and tax code.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.