How much tax do I pay on a £5,000 bonus with a £25,000 salary?

On a £25,000 base salary in 2026/27, a £5,000 bonus generates £1,000 of Income Tax and £226 of employee National Insurance. After PAYE deductions the bonus take-home is £3,774 - an effective marginal rate of 24.5% on the bonus pound.

What is the effective marginal rate on this bonus?

24.5% across Income Tax and employee NI combined: Income Tax takes 20.0% of the bonus (£1,000) and employee NI 4.5% (£226). Employee NI is worked out for the month the bonus is paid: 8% between the monthly Primary Threshold (£1,048) and the monthly Upper Earnings Limit (£4,189), 2% above it, so most of a large bonus pays the lower rate. This assumes you are paid monthly and are not a company director; directors have an annual earnings period, so their NI on a bonus can differ (higher or lower).

Would salary-sacrificing this £5,000 bonus into pension be worth it?

Sacrificing the bonus puts the full £5,000 into your pension pot tax-free vs £3,774 cash in hand - a gain of £1,226 of pension value over cash. The trade-off is liquidity: you normally cannot draw a pension before the normal minimum pension age, which is 55 now and rises to 57 from 6 April 2028 (Finance Act 2022 s.10). The sacrifice also has to be agreed before you are entitled to the bonus, not just before it is paid (HMRC EIM42765; ITEPA 2003 s.18). At 24.5% marginal the gain is smaller, so the decision depends on your liquid-savings buffer and pension contribution headroom.

Why might the bonus payslip show more tax taken than this figure?

For Income Tax, cumulative PAYE can take more in the bonus month because the bonus uses up the allowance and bands available so far in the year; later months even it out and the year's Income Tax reconciles to the figure shown here. National Insurance does not reconcile: it is settled month by month, and the figure here is what the bonus month's NI should be for a monthly-paid employee who is not a director. On a week-1/month-1 (non-cumulative) tax code, Income Tax is not evened out during the year either.

£5,000 bonus on £25,000 salary: Take-home and tax breakdown 2026/27

A £5,000 bonus paid on top of a £25,000 base salary in 2026/27 leaves £3,774 in cash take-home after Income Tax and employee National Insurance. That is an effective marginal rate of 24.5% on the bonus pound. Baseline annual take-home before the bonus is £21,520; with the bonus paid as cash the figure rises to £25,293. Figures below assume England rest-of-UK rates, no pension contribution, and a monthly-paid employee who is not a company director, with the bonus paid in one month: NI on the bonus is worked out for that month (gov.uk monthly thresholds). Directors have an annual earnings period (gov.uk), so their NI on a bonus can differ (higher or lower).

Bonus tax breakdown

Per-line contribution of the bonus only: Income Tax is the year's tax with the bonus minus the year's tax without it; employee NI is the extra NI in the bonus month.

Line	Amount
Gross bonus	£5,000
Income Tax on bonus	£1,000
Employee NI on bonus	£226
Pension (assumed nil for this scenario)	£0
Net bonus take-home	£3,774
Effective marginal rate	24.5%

Annual payslip vs baseline

Annual figure	£25,000 only	+ £5,000 bonus	Bonus impact
Gross	£25,000	£30,000	+£5,000
Income Tax	£2,486	£3,486	+£1,000
National Insurance	£994	£1,221	+£226
Take-home	£21,520	£25,293	+£3,774

Same £5,000 bonus, different salaries

How the same bonus is taxed depends entirely on the base salary it stacks on top of.

Base salary	Bonus take-home	Effective marginal	Page
£25,000 (this page)	£3,774	24.5%	-
£45,000	£3,874	22.5%	View
£65,000	£2,900	42.0%	View

Different bonus sizes on the same £25,000 salary

Bonus	Bonus take-home	Effective marginal	Page
£5,000 (this page)	£3,774	24.5%	-
£10,000	£7,674	23.3%	View
£25,000	£19,374	22.5%	View

Next steps

Bonus tax calculator hub - run any custom salary + bonus combination.
Salary calculator - the underlying engine, with full payslip breakdown.
Pension contribution calculator - work out the optimal contribution rate.
Salary sacrifice calculator - bonus-into-pension comparison vs cash.
Tax trap calculator - £100k Personal Allowance taper walkthrough.

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Frequently asked questions

How much tax do I pay on a £5,000 bonus with a £25,000 salary?: On a £25,000 base salary in 2026/27, a £5,000 bonus generates £1,000 of Income Tax and £226 of employee National Insurance. After PAYE deductions the bonus take-home is £3,774 - an effective marginal rate of 24.5% on the bonus pound.
What is the effective marginal rate on this bonus?: 24.5% across Income Tax and employee NI combined: Income Tax takes 20.0% of the bonus (£1,000) and employee NI 4.5% (£226). Employee NI is worked out for the month the bonus is paid: 8% between the monthly Primary Threshold (£1,048) and the monthly Upper Earnings Limit (£4,189), 2% above it, so most of a large bonus pays the lower rate. This assumes you are paid monthly and are not a company director; directors have an annual earnings period, so their NI on a bonus can differ (higher or lower).
Would salary-sacrificing this £5,000 bonus into pension be worth it?: Sacrificing the bonus puts the full £5,000 into your pension pot tax-free vs £3,774 cash in hand - a gain of £1,226 of pension value over cash. The trade-off is liquidity: you normally cannot draw a pension before the normal minimum pension age, which is 55 now and rises to 57 from 6 April 2028 (Finance Act 2022 s.10). The sacrifice also has to be agreed before you are entitled to the bonus, not just before it is paid (HMRC EIM42765; ITEPA 2003 s.18). At 24.5% marginal the gain is smaller, so the decision depends on your liquid-savings buffer and pension contribution headroom.
Why might the bonus payslip show more tax taken than this figure?: For Income Tax, cumulative PAYE can take more in the bonus month because the bonus uses up the allowance and bands available so far in the year; later months even it out and the year's Income Tax reconciles to the figure shown here. National Insurance does not reconcile: it is settled month by month, and the figure here is what the bonus month's NI should be for a monthly-paid employee who is not a director. On a week-1/month-1 (non-cumulative) tax code, Income Tax is not evened out during the year either.