Bonus Tax Calculator (2026/27): How Much of Your 13th Cheque You'll Keep

By Finance Guide Editors Updated October 2026 · 5 sources · 4 min read

Prices and facts checked 23 October 2026. We don't accept payment for rankings.

Short answer: there's no special "bonus tax" in South Africa. Your bonus is added to your income for the year and taxed at your marginal rate, which is usually 18% to 41%. If you earn R25,000 a month and get a R25,000 13th cheque, expect about R6,500 in tax, so you keep about R18,500. The tax looks high because your employer takes it all in the bonus month (SARS employer guide, 2027 tax year).

Bonus tax calculator

How SARS taxes a bonus

SARS calls a bonus an annual payment. Its guide for employers sets out the method:

1. Work out your yearly salary: your monthly salary × 12.
2. Work out the tax on that yearly salary, using the annual tax tables.
3. Work out the tax on your yearly salary plus the bonus.
4. The difference is the tax taken from your bonus, on top of your normal monthly PAYE.

SARS's own example: an employee earning R28,000 a month gets a R14,800 bonus in October. The tax on the bonus is R3,778, so their total PAYE for October is R7,949 instead of the usual R4,171. Our calculator gives about R3,850 for the same example, because SARS's payroll deduction tables are rounded slightly differently from the annual tax brackets.

Because the whole bonus is taxed at your top rate, the percentage looks higher than the tax on your normal salary. Your normal monthly tax is spread over all your income, including the parts taxed at lower rates or covered by your rebate.

Examples: a 13th cheque equal to one month's salary

We calculated these with the 2026/27 tax brackets and the primary rebate (under 65), ignoring medical aid tax credits and UIF. Your payslip may differ slightly, because payroll systems use SARS's deduction tables.

Is a bonus taxed twice?

No. The PAYE taken from your bonus counts towards your tax for the year. When you file your return, SARS adds up all your income and all the PAYE already paid. If your employer took too much, you get it back as a refund. If your employer spreads the tax on your bonus over the year, less comes off in the bonus month itself (TaxTim). SARS's guide allows this when you've worked for the employer for the full tax year.

Ways to keep more of your bonus

• Put part of it into a retirement annuity. RA contributions are tax-deductible, up to 27.5% of your income (max R430,000 a year). Ask your employer whether they can take your RA contribution into account in PAYE. Otherwise, you'll get the tax back when you file. Try our RA tax calculator.
• Use your tax-free savings allowance. Growth is tax-free, up to R46,000 a year. Unused allowance for this tax year disappears on 28 February 2027. See our TFSA calculator.
• Pay off expensive debt first. Clearing a credit card at 20%+ interest is a guaranteed saving. See maximum interest rates on loans.

Do employers have to pay a bonus?

Not automatically. Under South African law, a bonus is only enforceable if it's in your contract, a company policy or collective agreement, or sometimes if it's been paid consistently for years. A 13th cheque is usually a guaranteed contractual payment, while a performance bonus is usually discretionary (Bizcommunity, Cliffe Dekker Hofmeyr).

Your employer pays the PAYE over to SARS each month (SARS PAYE). You'll see the bonus on your IRP5 under code 3605.

FAQ

What percentage is bonus tax in South Africa?

There's no fixed bonus tax rate. Your bonus is taxed at your marginal rate: 18%, 26%, 31%, 36%, 39%, 41% or 45%, depending on your total income for 2026/27.

Why is the tax on my bonus so high?

Your employer takes all of it in one month and at your highest rate. The tax on your normal salary looks lower because it's spread across all your income, including the parts taxed at lower rates.

Is my 13th cheque taxed differently from a bonus?

No. Both are annual payments, and SARS taxes them the same way.

Will I get the bonus tax back?

Only if too much was taken overall. When you file your return, SARS compares all the PAYE paid with the tax you actually owe for the year.

Can I avoid paying tax on my bonus?

You can reduce it legally, for example with retirement annuity contributions, which are tax-deductible. You can't avoid tax on the bonus itself.

Changelog: 23 Oct 2026, first published with the 2026/27 tax tables.