Bonus tax calculator
Your thirteenth cheque is taxed at your marginal rate, not a special penalty rate - but payroll often withholds more in that month, which is why the bonus feels hammered. See the real annual tax on your bonus, on the official SARS tables. Nothing you enter leaves this page.
Why your bonus feels over-taxed
SARS taxes your total income for the year - there is no separate bonus rate. But most payroll systems annualise the bonus month, withhold PAYE as if you earn that much every month, and normalise it over the following months. The result: bonus month take-home looks brutal, and any over-withholding comes back when you file your return.
This calculator shows the true annual effect: your tax for the year with the bonus, minus your tax without it. That difference is what the bonus actually costs you.
Frequently asked questions
Is a thirteenth cheque taxed differently from a performance bonus?
No. Both are remuneration, added to your income for the year and taxed at your marginal rate. The label makes no difference to SARS.
Can I reduce the tax on my bonus?
The clean route is a retirement annuity top-up: contributions are deductible up to 27.5% of income. Put part of the bonus into an RA and part of the tax comes back at filing time. Run the retirement calculator to see the effect.
Why did my payslip show more tax than this calculator?
Withholding in bonus month often overshoots. The overpayment is not lost - it returns as a refund when you file, which is worth doing even if you are under the filing threshold.
Over-taxed in bonus month?
The refund estimator shows what comes back when you file - medical aid, retirement and travel deductions included.
Estimate my refundKeep exploring
Based on the SARS tables for the 2027 tax year (1 March 2026 to 28 February 2027), sars.gov.za. Free tools are estimates. Packs are templates and guidance, not legal or financial advice.