Bonus tax in the UK · 2026/27 tax year
£5,000 bonus after tax in 2026/27
A £5,000 bonus on a £35,000 salary leaves you £3,823.66 in 2026/27, after £1,000 Income Tax and £176.34 National Insurance, in England, Wales or Northern Ireland. On £55,000 you keep £2,900, because all of it is taxed at 40% and NI is only 2%. In Scotland the same bonus on £35,000 leaves £3,773.66. In the month you are paid it, your payslip takes £1,176.34 more than usual.
Tax, National Insurance and student loan rules checked against GOV.UK and HMRC on .
Kept on £35,000
£3,824
of the £5,000 bonus
Kept on £55,000
£2,900
higher-rate taxpayer
Kept on £110,000
£1,900
part taxed at 60%
Scotland on £35,000
£3,774
top rate reached 21%
What a £5,000 bonus leaves you at each salary, 2026/27
England, Wales and Northern Ireland, paid monthly on a 1257L code. Tax is the extra for the year; NI is the extra in the month the bonus is paid.
| Salary | Income Tax on the bonus | NI on the bonus | You keep | Rate on the bonus | Top tax rate reached | You keep with Plan 2 loan |
|---|---|---|---|---|---|---|
| £25,000 | £1,000 | £226.34 | £3,773.66 | 24.5% | 20% | £3,356.55 |
| £35,000 | £1,000 | £176.34 | £3,823.66 | 23.5% | 20% | £3,373.66 |
| £45,000 | £1,000 | £126.34 | £3,873.66 | 22.5% | 20% | £3,423.66 |
| £55,000 | £2,000 | £100 | £2,900 | 42% | 40% | £2,450 |
| £75,000 | £2,000 | £100 | £2,900 | 42% | 40% | £2,450 |
| £95,000 | £2,000 | £100 | £2,900 | 42% | 40% | £2,450 |
| £110,000 | £3,000 | £100 | £1,900 | 62% | 60% | £1,450 |
| £150,000 | £2,250 | £100 | £2,650 | 47% | 45% | £2,200 |
A £5,000 bonus in Scotland, 2026/27
Scottish Income Tax has six bands, from 19% to 48%. National Insurance and student loans are the same across the UK.
| Salary | Income Tax on the bonus | You keep | Top tax rate reached | Compared with England |
|---|---|---|---|---|
| £25,000 | £1,004.74 | £3,768.92 | 21% | £4.74 less |
| £35,000 | £1,050 | £3,773.66 | 21% | £50 less |
| £45,000 | £2,100 | £2,773.66 | 42% | £1,100 less |
| £55,000 | £2,100 | £2,800 | 42% | £100 less |
| £75,000 | £2,250 | £2,650 | 45% | £250 less |
| £95,000 | £2,250 | £2,650 | 45% | £250 less |
| £110,000 | £3,375 | £1,525 | 67.5% | £375 less |
| £150,000 | £2,400 | £2,500 | 48% | £150 less |
Your payslip in the month a £5,000 bonus is paid
On a £35,000 salary with the bonus paid in December. Tax is cumulative, so December can take more than the year needs and January less. NI is worked out on December alone.
| Line | A normal month | December with the bonus | January after |
|---|---|---|---|
| Gross pay | £2,916.67 | £7,916.67 | £2,916.67 |
| Income Tax | £373.83 | £1,373.83 | £373.83 |
| National Insurance | £149.49 | £325.83 | £149.49 |
| Take-home | £2,393.35 | £6,217.01 | £2,393.35 |
Taking a £5,000 bonus as cash or paying it into your pension
Bonus sacrifice means giving up the cash bonus in return for the same amount paid into your workplace pension. There is no Income Tax or employee NI on it, but your employer has to offer it and you normally agree before the bonus is due.
| Salary | As cash, you keep | Into your pension | Tax and NI saved | Cost to you per £1 in the pension |
|---|---|---|---|---|
| £25,000 | £3,773.66 | £5,000 | £1,226.34 | 75p |
| £35,000 | £3,823.66 | £5,000 | £1,176.34 | 76p |
| £45,000 | £3,873.66 | £5,000 | £1,126.34 | 77p |
| £55,000 | £2,900 | £5,000 | £2,100 | 58p |
| £75,000 | £2,900 | £5,000 | £2,100 | 58p |
| £95,000 | £2,900 | £5,000 | £2,100 | 58p |
| £110,000 | £1,900 | £5,000 | £3,100 | 38p |
| £150,000 | £2,650 | £5,000 | £2,350 | 53p |
When this bonus is taxed at 40%
Only pay above £50,270 is taxed at 40% in England, Wales and Northern Ireland. A £5,000 bonus reaches that band if your salary is over £45,270. None of the salaries in the table above sits in that gap: below £45,270 the whole bonus is taxed at 20%, and above £50,270 all of it is taxed at 40%.
The £100,000 tax trap
Between £100,000 and £125,140 you lose £1 of Personal Allowance for every £2 of income, so that slice is taxed at an effective 60% (67.5% in Scotland). Part of a £5,000 bonus lands in it if your salary is between £95,000 and £125,140. On £110,000, £5,000 of the bonus is in that band and you keep £1,900 of the £5,000. If your tax code still gives you the full allowance, payroll will not take all of this in the bonus month, but it is still owed for the year.
Scotland's 42% band
In Scotland the higher rate of 42% starts at £43,662, so a £5,000 bonus is partly taxed at 42% on salaries over £38,662. At £75,000 the advanced rate of 45% takes over. A salary of £35,000 is in the 21% intermediate band, so a Scottish taxpayer there keeps £3,774 rather than £3,824.
Why the NI on a bonus can be lower than 8%
National Insurance is worked out on each month's pay on its own, and 8% only applies up to £4,189 a month. Above that it is 2%. On £35,000, the bonus month comes to £7,916.67, so £3,727.67 of the bonus has only 2% NI and the NI on the whole bonus is £176.34 rather than 8% of it. This bonus alone is over £4,189, so part of it has 2% NI on any salary.
Child Benefit and the bonus
If you or your partner claim Child Benefit, the charge starts when adjusted net income goes over £60,000 and takes back 1% for every £200 above it. On £75,000 a £5,000 bonus takes you to £80,000, so the charge rises from 75% to 100% of your Child Benefit. Paying the bonus into a pension lowers adjusted net income.
Student loan repayments on this bonus
Plan 2 takes 9% of pay over £2,448.75 in any month, so on £35,000 a £5,000 bonus costs £450 in repayments and you keep £3,374.
Why the tax evens out but NI does not
On a normal tax code payroll works tax out on your total pay so far in the tax year, using the share of each band for the months so far. On £35,000 nine months' share of the 20% band is big enough to hold this bonus, so December takes £1,000 more Income Tax, the same as the bonus costs for the year, and nothing needs to come back. NI has no such catch-up, because each month is worked out on its own.
Is a bonus taxed at a special rate?
No. A bonus is taxed as pay, at the same rates as your salary. It only looks heavier because it lands on top of your salary, so it is taxed at your highest rate, and because it is all in one payslip.
Guides and definitions
- National Insurance rates 2026/27: what you pay and how it works (Guide)
- Emergency tax code (An emergency tax code, marked W1, M1 or X, taxes each payday on its own, as if you were paid that amount every period of the year.)
- Marginal tax rate (Your marginal tax rate is the share of your next pound or dollar of income that goes in tax and deductions.)
- P11D (A P11D is the form UK employers send HMRC by 6 July to report each employee's taxable benefits and expenses that were not taxed through payroll.)
- P60 (A P60 is the yearly summary of your pay and tax from one employer, due by 31 May if you work there on 5 April.)
- Personal Allowance (The Personal Allowance is the income you can earn each UK tax year before Income Tax starts: £12,570 for 2026/27.)
Other bonus amounts
- £3,000 bonus after tax (£2,264 kept on £35,000)
- £4,000 bonus after tax (£3,044 kept on £35,000)
- £7,500 bonus after tax (£5,774 kept on £35,000)
- £10,000 bonus after tax (£7,724 kept on £35,000)
How bonus tax works, with every amount · Bonus tax calculator · £35,000 after tax · Work out your own bonus
Common questions
How much tax will I pay on a £5,000 bonus?
On a £35,000 salary, £1,000 Income Tax and £176.34 National Insurance, leaving £3,823.66. On £55,000 you keep £2,900, and on £110,000 only £1,900, because that bonus sits in the band where the Personal Allowance is withdrawn.
Why is my £5,000 bonus taxed so much on my payslip?
Because it all lands in one payslip and is taxed at your top rate. On £35,000 with the bonus paid in December, tax and NI that month are £1,176.34 higher than usual. That matches the true cost for the year, so nothing comes back later. It is simply 20% tax plus NI on the bonus in one go.
Is a £5,000 bonus taxed at 40%?
Only the part that takes your pay over £50,270 in England, Wales or Northern Ireland. If your salary is under £45,270 the whole bonus is taxed at 20%. If your salary is already over £50,270, all of it is taxed at 40%, and between £100,000 and £125,140 the effective rate is 60%.
Can I put my £5,000 bonus into my pension to avoid tax?
Yes, if your employer offers bonus sacrifice. You give up the cash and the full £5,000 goes into your pension with no Income Tax or employee NI. On £55,000 that saves £2,100, so each £1 in the pension costs you 58p. You normally have to agree it before the bonus is due.
How much of a £5,000 bonus do I keep with a student loan?
On £35,000 with a Plan 2 loan, £3,373.66. Plan 2 takes 9% of pay over £2,448.75 in the month, so the bonus adds £450 in repayments on top of £1,000 tax and £176.34 NI.
Sources and assumptions
- Paid monthly, the same salary every month, a 1257L tax code (S1257L in Scotland) on the normal cumulative basis, and no other income, for the 2026/27 tax year.
- The bonus is paid in one month. Income Tax is the difference over the whole year; National Insurance and student loan are the extra taken in the bonus month, because both are worked out on each month's pay.
- No pension contributions unless a table says so. Bonus sacrifice figures assume your employer offers it and pays the whole amount into your pension.
- Payroll rounds in places, so your payslip can differ by a few pounds.
- Income Tax rates and Personal Allowances
- Income Tax: income over £100,000
- Scottish Income Tax
- Rates and thresholds for employers 2026 to 2027
- HMRC NIM08600: bonuses and earnings periods
- Emergency tax codes (cumulative and M1 basis)
- Repaying your student loan: what you pay
- High Income Child Benefit Charge
- Salary sacrifice and the effects on PAYE
These are estimates, not tax advice. Your payslip depends on your tax code, how often you are paid, pension arrangements and any other income.