Bonus Tax Calculator
See exactly how much PAYE you pay on a bonus or 13th cheque, and what you actually take home. Uses 2026/2027 SARS tax tables.
✓ Fact-checkedUpdated 18 May 2026Sources: SARS Income Tax Act·Budget 2026/2027 Tax Guide
Key takeaways
- ✓A bonus is taxed as normal income — SARS adds it to your annual salary and applies PAYE at your marginal rate.
- ✓The 'extra tax' on a bonus is the additional PAYE your full-year income attracts compared to your salary alone.
- ✓You can reduce the tax by directing some or all of the bonus into a retirement annuity (RA) before your employer processes it.
- ✓Pro-rata 13th cheques are taxed at the same rate as a full bonus — the proportion doesn't change the rate.
For pro-rata 13th cheque (select 12 for full year bonus)
Affects rebate amount
Net bonus (after PAYE)
R 21 861,05
PAYE on bonus
R 8 138,95
27.1% of gross bonus
Marginal rate
31% marginal rate
on last rand of combined income
PAYE calculation breakdown
How SA bonus tax works
SARS does not have a separate "bonus tax rate." Your employer uses the aggregate method:
Add the bonus to your annual salary to get combined annual income.
Calculate PAYE on the combined annual income using the tax tables.
Calculate PAYE on your annual salary alone (without the bonus).
The difference is the PAYE on your bonus — withheld before payment.
The result is that your bonus is taxed at your marginal rate— the rate that applies to the top slice of your income. For most South Africans, that's between 26% and 41%.
💡 Reduce bonus tax with a retirement annuity
If you contribute the bonus (or part of it) to a retirement annuity before your employer processes payroll, it reduces your taxable income for the month — and the year. The SARS deduction limit is 27.5% of taxable income, up to R350,000/year. Use the RA tax benefit calculator to see the saving.
Frequently asked questions
How is a bonus taxed in South Africa?
SARS treats a bonus as normal income. Your employer adds the bonus to your annual salary, calculates the PAYE on the combined figure, then subtracts the PAYE on your salary alone — the difference is withheld from your bonus. This means your bonus is effectively taxed at your marginal tax rate.
What is the tax on a 13th cheque in South Africa?
A 13th cheque is simply an extra month's salary and is taxed the same way as any other income — at your marginal PAYE rate. If you earn R30,000/month (annual R360,000), a R30,000 bonus pushes you to R390,000 total, attracting PAYE at 31% on the additional amount. The same applies to a 13th cheque of any size.
Can I reduce the tax on my bonus?
You can reduce your PAYE by increasing your retirement annuity (RA) contributions — up to 27.5% of taxable income (capped at R350,000/year) is deductible before PAYE is calculated. Some employers allow you to direct a bonus into a pension fund via a voluntary contribution, reducing your taxable income for that month. Consult a financial adviser for your specific situation.
What if I only worked part of the year — do I get a pro-rata bonus?
Many employers pay a pro-rata 13th cheque based on months worked. For example, 6 months of service entitles you to 50% of the 13th cheque. SARS taxes the pro-rata amount the same way — it's added to your income for the tax year and taxed at your marginal rate.
Is a performance bonus taxed differently to a 13th cheque?
No — both are treated as gross income and taxed under PAYE at your marginal rate. The only bonuses that get special tax treatment are retirement/retrenchment lump sums, which are taxed using the separate SARS retirement lump sum table.
Related tools
Salary hub →
All salary, tax, and deduction calculators
Salary calculator →
Full PAYE, UIF, and take-home breakdown
RA tax benefit calculator →
How much PAYE an RA contribution saves
Pension tax calculator →
Pension fund contribution tax treatment
Retrenchment calculator →
Severance pay and tax on lump sums
Two-pot calculator →
Two-pot retirement system withdrawal tax
Read next
All guides →Free Alternatives to the Sage South Africa Payroll Calculator
Free alternatives to Sage for South African payroll: a no-sign-up PAYE calculator for employees, plus free payroll software options for small employers.
Read guideTop Salary and Tax Calculators for South Africa in 2026
Six SA salary and tax calculators compared by use case — payslip checks, bonus tax and tax return filing, checked against the 2026/27 SARS tables.
Read guideHow to Calculate PAYE and UIF for a South African Employee in 2026
Apply the 2026/27 SARS tax tables to taxable income, subtract rebates and medical aid credits, then calculate UIF at 1% of capped remuneration.
Read guide