Your bonus stacks on top of your salary, so it's taxed at your top rate. See what actually reaches your bank.
A bonus is just extra income, taxed at the same rates as salary but because it sits on top of your salary, every pound is taxed at your highest marginal rate. Cross £50,270 and the bonus is taxed at 40% income tax (NI drops to 2%); between £100,000 and £125,140 it's effectively taxed around 60%.
Want to keep more of it? Many employers let you sacrifice the bonus into your pension, no income tax or NI on the sacrificed part, so the whole amount lands in your pension instead.
Sources: gov.uk & HMRC (income tax, NI, student loan, 2026/27). Illustrative; assumes a standard tax code and the salary as your only other income.
Illustrative only, not financial or tax advice. Assumes a standard personal allowance and tax code, your salary as your only other income, and that a sacrificed bonus stays above minimum wage. Payroll may apply emergency tax in the month of payment, which corrects in later payslips. Always check your payslip and gov.uk.
Pairs with the Take-Home Pay and Salary Sacrifice calculators.