UK Bonus and Commission
Tax Calculator 2026/27
Find out exactly how much of your bonus or commission you actually keep after income tax and National Insurance.
Enter your annual gross salary before the bonus
Enter your gross bonus or commission amount
How is a bonus taxed in the UK?
A bonus is treated as ordinary earnings for income tax and National Insurance purposes. It is added to your annual salary and taxed at your marginal rate — the rate that applies to the top portion of your income.
If your salary is £45,000 and you receive a £10,000 bonus, your total income is £55,000. The first £5,270 of the bonus (up to the £50,270 higher rate threshold) is taxed at 20%, and the remaining £4,730 is taxed at 40%. The same principle applies to NI — the rates switch at the upper earnings limit.
Can I put my bonus into my pension to save tax?
Yes. If your employer supports bonus sacrifice, you can redirect all or part of your bonus directly into your pension. This avoids income tax and National Insurance entirely on the sacrificed amount. A higher rate taxpayer would save 42% (40% tax plus 2% NI) by doing this. Use our pension calculator to model the difference.
Related calculators
Your bonus sits on top of your regular salary and is taxed at your marginal rate — use the main salary calculator to confirm your underlying tax position first. Our income tax calculator shows which band your combined salary and bonus falls into and what rate applies to the top slice. See what you would actually receive with the take home pay calculator. Expecting a pay rise on top of your bonus? Our pay rise calculator shows the net value. If you need to know a gross bonus from a net figure, use the net to gross calculator. For overtime pay, our overtime calculator handles time-and-a-half and custom rates.
Frequently asked questions
A bonus is added to your regular salary and taxed at your marginal rate. If your total income including the bonus pushes you into the higher rate band, the portion above £50,270 is taxed at 40%. National Insurance is also deducted at 8% up to £50,270 and 2% above that threshold.
Basic rate taxpayers keep around 72% of a bonus (80% after 20% tax, then less 8% NI). Higher rate taxpayers keep around 58% (60% after 40% tax, then less 2% NI on the higher rate portion). If your bonus spans two bands, the effective rate will be somewhere between these figures.
Yes, if your employer supports bonus sacrifice. The bonus goes directly into your pension fund without passing through your salary, so no income tax or NI is deducted. For a higher rate taxpayer, this means saving 42% that would otherwise go to HMRC.
Yes. Commission is treated as earnings for both income tax and National Insurance purposes. It is added to your salary and taxed at your marginal rate, exactly as a bonus would be.