Answers · UK 2025/26
How is a bonus taxed in the UK?
A UK bonus is taxed exactly like salary — at your marginal Income Tax rate (20%/40%/45%) plus 8%/2% employee NI. There's no separate "bonus tax". A £5,000 bonus to a higher-rate taxpayer pays £2,100 in tax/NI (42%); to a basic-rate taxpayer ~£1,400 (28%).
Full answer
UK bonus tax for 2025/26. Bonuses are treated as regular employment income. Income Tax applies at your marginal rate: 0% within the Personal Allowance (£12,570), 20% basic, 40% higher (£50,271–£125,140), 45% additional. NI: 8% between PT and UEL (£12,570–£50,270), 2% above. Bonuses are calculated month-by-month under PAYE so a one-off large bonus pushes your monthly tax up that month, but year-end reconciliation usually corrects this. Bonus sacrifice: instead of taking the bonus as cash, sacrifice it into your pension. You save Income Tax (20%/40%/45%) + employee NI (8%/2%) + 15% employer NI — often shared back as a bigger pension contribution. Worked example: £5,000 bonus to a £45,000 earner crosses into higher-rate. The amount above £50,270 is taxed at 40% + 2% NI. Roughly: first £5,270 at 20%+8% = 28%, next nothing at 40%+2% — total tax ~£1,400. The £100k-£125,140 trap: a bonus that pushes you into this band loses Personal Allowance taper at 60% effective rate. Pension contribution often the right answer.
Try the calculator
More answers
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.