Bonus Tax Calculator
Bonus Tax Calculator
See how much PAYE comes off your annual bonus or 13th cheque, and what actually lands in your account.
How it works: Your employer works out the tax on your annual salary with the bonus, then the tax without it. The difference is the PAYE on your bonus. Because the bonus sits on top of your salary, it is taxed at your highest (marginal) rate, which is why it can feel heavily taxed.
Frequently asked questions
Is a bonus taxed at a higher rate?
No special rate applies. It is taxed at your marginal rate, which is often higher than the average rate on your salary.
Can I reduce tax on my bonus?
Putting part of it into a retirement annuity lowers your taxable income, within the 27.5% and R430 000 limits.