How much of your bonus will you actually receive?
Your 2026 bonus is taxed at your marginal rate — not an average. Find out exactly what lands in your account after tax.
Why bonuses are taxed more than your salary feels
A bonus doesn't get its own fresh tax allowances — it's added on top of your salary and taxed at whatever rate applies to that slice of income. If your salary already puts you in the 40% UK tax band or the 22% US federal bracket, every pound or dollar of bonus is taxed at those rates, plus NI or FICA on top.
Your details
Needed to determine your marginal tax rate.
Tax settings
Bonus is taxed at your marginal rate — we calculate it using the aggregate method.
Enter your salary and bonus to see your net amount
Bonuses are taxed at your marginal rate — not a flat percentage.
How the bonus tax calculator works
🇺🇸 US — aggregate method
- 1
Calculate tax on salary alone
We run your annual salary through 2026 federal brackets, Social Security (6.2% up to $178,500), Medicare (1.45%), and your state tax rate.
- 2
Add bonus to salary, recalculate
Your bonus is added to your gross salary to get a new total. We recalculate federal + state + FICA on this higher income. Pre-tax deductions (401k, HSA, health insurance) still apply.
- 3
Difference = tax on the bonus
The extra tax generated by adding the bonus is the true cost. Bonus take-home = gross bonus minus this tax difference.
- 4
Why not the 22% flat rate?
IRS Publication 15 allows employers to withhold at a flat 22% supplemental rate for payroll purposes. But your actual liability is based on aggregate income — you get a refund or pay more at filing if 22% isn't your real marginal rate.
🇬🇧 UK — PAYE marginal method
- 1
Calculate PAYE at salary alone
Income tax (HMRC 2026/27 bands) and Employee NI (8% to £50,270, 2% above) are calculated on your base salary with the £12,570 Personal Allowance.
- 2
Add bonus, recalculate PAYE
Your bonus is added to annual gross. Tax and NI are recalculated. If your bonus crosses a band boundary (e.g. pushing salary over £50,270), each portion is taxed at its correct marginal rate.
- 3
Handle the £100k–£125,140 taper
If your salary + bonus falls in this range, the Personal Allowance tapers at £1 per £2 of additional income, creating a 60% effective marginal rate. The calculator flags this automatically.
- 4
Student loan deductions
If your combined income crosses your plan repayment threshold, the relevant rate (9% for most plans, 6% for Postgrad) applies to the amount above the threshold.
Bonus tax: what you need to know
🇬🇧 UK bonus tax rules
- →Bonus is taxed through PAYE — same as your regular salary
- →Added to annual income to determine marginal rate
- →National Insurance applies at 8% (up to £50,270) or 2% above
- →Student loan repayments trigger if bonus pushes above threshold
- →Consider sacrificing part of bonus into pension to reduce tax
🇺🇸 US bonus tax rules
- →Supplemental wages — employer often withholds at flat 22%
- →Actual tax uses aggregate method (combined with salary)
- →FICA applies: 6.2% SS (up to $178,500 base) + 1.45% Medicare
- →State income tax applies on top of federal
- →Over-withheld? You'll get a refund when you file your return
Frequently asked questions
My employer withheld 22% on my US bonus — is that the right rate?
22% is the IRS supplemental rate your employer uses for withholding purposes. But your actual tax liability depends on your total income for the year. If your marginal rate is higher than 22%, you'll owe more at filing. If it's lower, you'll get a refund. Our calculator uses the aggregate method — adding the bonus to your salary to find your true marginal rate.
Can I avoid paying tax on my UK bonus?
You can't avoid it entirely, but you can reduce it. One option is to negotiate with your employer to take some or all of your bonus as a pension salary sacrifice — it goes straight into your pension pre-tax and pre-NI. This is particularly valuable if your bonus would push you into the 40% band or the £100k–£125,140 taper zone.
My UK salary is £45,000 and my bonus is £10,000. What rate applies to the bonus?
Your salary puts you in the basic rate band (20%). But your bonus brings your total income to £55,000 — crossing the £50,270 threshold. So approximately £4,730 of the bonus is taxed at 20% (basic rate) + 8% NI, and the remaining ~£5,270 is taxed at 40% (higher rate) + 2% NI. Our calculator applies each portion at the correct rate.
Does my US bonus affect Social Security tax?
Yes, if your salary + bonus is below the $178,500 Social Security wage base. Social Security (6.2%) applies to every dollar up to that cap. Once you've exceeded $178,500 in combined earnings, additional income (including bonus) is not subject to Social Security — though Medicare (1.45%) still applies with no cap.
Is a discretionary bonus taxed differently from a contractual one?
No — the tax treatment is the same regardless of whether the bonus is contractual or discretionary. Both are treated as employment income and taxed through PAYE (UK) or as supplemental wages (US) at your marginal rate.
🇺🇸 US official references
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