Bonus Tax Calculator
Work out the PAYE on a bonus or 13th cheque for 2026/27, the UIF on it, how much of it you keep and your take-home pay in the month it is paid.
Your pay and bonus
Worked example
These are the calculator's starting values, so the results above match this example until you change an input.
Thandi earns R 30 000 a month, is 40 and gets a 13th cheque of R 30 000 in December. Her salary is R 360 000 a year.
Her employer works out the tax on R 390 000 (salary plus bonus) and on R 360 000 (salary alone) and deducts the difference, R 8 145, from the bonus. R 23 100 of the bonus is taxed at 26% and the R 6 900 above R 383 100 at 31%, a rate of 27,2% on the bonus. Her salary is above the UIF ceiling, so the bonus adds no UIF.
She keeps R 21 855 of the bonus. With her usual net pay, her take-home for December is R 46 996,88.
How PAYE on a bonus is worked out
A bonus, 13th cheque or other once-a-year payment is not taxed with the monthly tax tables. SARS tells employers to treat it as an annual payment: they work out the tax on a full year of your regular pay plus the bonus, take off the tax on a year of your regular pay alone, and deduct the difference in the month the bonus is paid. Your normal PAYE for that month is deducted as usual on top.
This calculator follows the same steps with the 2026/27 tables (1 March 2026 to 28 February 2027). Both yearly figures are after the rebates for your age and the medical scheme fees tax credits, and after retirement fund contributions deducted through payroll, which are allowed up to 27.5% of the greater of your remuneration or taxable income, capped at R 430 000 a year (this calculator applies it to your salary plus bonus). Because the limit grows with your income, a bonus can also make a little more of a large contribution deductible.
PAYE on the bonus = tax(12 × salary + bonus) − tax(12 × salary)
Why a bonus seems to be taxed more
The bonus sits on top of your salary, so all of it is taxed at your highest rate, or partly at the next rate up if it pushes you over a bracket edge. Your salary as a whole is taxed at a lower average rate, because its first rands fall in the lower brackets and the rebate covers part of the tax. Someone earning R 30 000 a month pays about 16% of their salary in PAYE but about 27% of a R 30 000 bonus. That is not an extra tax: it is the same yearly table, and only the part of your income above each bracket edge is taxed at the higher rate.
The bonus tax is not a penalty you get back later either. If your pay was the same all year and you have no other income or deductions, your assessment after the end of February should come out close to what was deducted.
A 13th cheque at different salaries, 2026/27
A bonus equal to one month's salary, for someone under 65 with no medical aid or retirement contributions. Below R 17 712 a month, 1% UIF is also deducted from the part of the bonus that brings the month's pay up to R 17 712.
| Monthly salary and bonus | PAYE on the bonus | You keep | Rate |
|---|---|---|---|
| R 10 000 | R 1 800 | R 8 123 | 18% |
| R 20 000 | R 4 792 | R 15 208 | 24% |
| R 30 000 | R 8 145 | R 21 855 | 27,2% |
| R 40 000 | R 12 400 | R 27 600 | 31% |
| R 50 000 | R 18 000 | R 32 000 | 36% |
| R 75 000 | R 30 750 | R 44 250 | 41% |
| R 100 000 | R 41 000 | R 59 000 | 41% |
UIF on a bonus
UIF is 1% of what you are paid in a month, up to a ceiling of R 17 712 a month, so at most R 177,12. A bonus counts as pay for UIF. If your salary already reaches the ceiling, the bonus adds no UIF; if it is below the ceiling, 1% is deducted from the part of the bonus that brings the month's pay up to R 17 712. Your employer pays a matching 1%.
What this calculator leaves out
It assumes you are paid the same salary every month for the whole tax year. If you started or leave partway through the year, your employer annualises your pay over the months you work there, which changes the result. It also leaves out fringe benefits, a travel allowance, commission, other income such as interest or rent, and retirement annuity contributions you pay yourself rather than through payroll (those are claimed on assessment). Some workers, such as people who work fewer than 24 hours a month for an employer, do not pay UIF at all. The deduction on your payslip can also differ by a few rand because payroll systems round the tax tables.
SARS treats a bonus or 13th cheque as an annual payment. The PAYE on it is the tax on a year of your regular pay plus the bonus, less the tax on a year of your regular pay alone, both after the rebates for your age, medical scheme fees tax credits and retirement fund contributions deducted through payroll. UIF is 1% of the month's pay up to the monthly ceiling, so a bonus adds UIF only when your salary is below it.
PAYE on the bonus = tax(12 × salary + bonus) − tax(12 × salary)
Figures used: 2026/27 tax brackets (18% to 45%), rebates R 17 820, R 9 765 (65 and older) and R 3 249 (75 and older), medical credits R 376 a month for each of the first two people and R 254 for each additional person, retirement deduction up to 27.5% of income and R 430 000 a year, UIF 1% up to R 17 712 a month.
Official sources:
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Open calculator →Frequently asked questions
Is my bonus taxed at a higher rate than my salary?
It is taxed on the same yearly table as your salary, but because it is added on top, all of it falls in your highest bracket. So the share of the bonus that goes to PAYE is usually higher than the share of your salary.
Why was so much tax taken off my 13th cheque?
In the bonus month your employer deducts the tax on the bonus at your marginal rate as well as your normal monthly PAYE, so the total deduction on that payslip is much bigger than usual. The calculator shows both parts.
Does a bonus push all my income into a higher tax bracket?
No. Only the part of your income above a bracket edge is taxed at the higher rate. If a bonus takes you over an edge, only the rands above it are taxed at the new rate; the rest of your salary is taxed as before.
Will I get the tax on my bonus back?
Usually not, because it is the correct tax for the year. You may get some back on assessment if you have deductions your employer did not know about, such as a retirement annuity you pay yourself, or if you did not work the whole year.
Is UIF deducted from a bonus?
Yes, if your salary is below the UIF ceiling of R 17 712 a month. UIF is 1% of the month's pay up to that ceiling, so a bonus adds UIF only until the month's pay reaches it.
Can my employer spread the tax on my bonus over the year?
Yes. SARS allows an employer to work out the tax on a bonus the employee is due to get at the start of the tax year and deduct it over the remaining pay periods, instead of all in the bonus month. The total for the year is the same.
Am I legally entitled to a 13th cheque?
The Basic Conditions of Employment Act does not require employers to pay a bonus. Whether you get one depends on your employment contract, your employer's policy, a sectoral determination or a collective or bargaining council agreement.
Related guides
Tax on bonuses explained
A bonus is taxed at your highest rate, so the PAYE in your bonus month is much higher than usual, but you don’t pay more tax overall than the tables say.
Read guide →GUIDEHow PAYE works
PAYE (Pay-As-You-Earn) is the income tax your employer withholds from each salary payment and pays to SARS.
Read guide →GUIDETake-home pay table 2026/27
What a monthly salary from R 5 000 to R 200 000 leaves after PAYE and UIF in the 2026/27 tax year.
Read guide →