[{"data":1,"prerenderedAt":589},["ShallowReactive",2],{"learn-\u002Flearn\u002Fbonus-13th-cheque-tax":3,"related-\u002Flearn\u002Fbonus-13th-cheque-tax":155},{"id":4,"title":5,"body":6,"category":143,"date":144,"description":145,"extension":146,"meta":147,"navigation":148,"path":149,"readingTime":150,"seo":151,"sitemap":152,"stem":153,"__hash__":154},"learn\u002Flearn\u002Fbonus-13th-cheque-tax.md","Why your bonus gets taxed so hard (it actually doesn't)",{"type":7,"value":8,"toc":134},"minimark",[9,13,18,26,34,38,49,56,60,67,71,74,97,100,104,107],[10,11,12],"p",{},"December arrives, your 13th cheque lands, and roughly a third of it is gone. Cue the annual myth: \"bonuses are taxed at a higher rate.\" They aren't. Here's what's actually happening.",[14,15,17],"h2",{"id":16},"there-is-no-bonus-tax-rate","There is no bonus tax rate",[10,19,20,21,25],{},"SARS taxes your ",[22,23,24],"strong",{},"total income for the year"," — salary, bonus, overtime, everything — using the normal tax tables. A bonus is just more income.",[10,27,28,29,33],{},"The confusion comes from ",[30,31,32],"em",{},"how PAYE is calculated in the month you receive it",".",[14,35,37],{"id":36},"the-annualisation-effect","The annualisation effect",[10,39,40,41,44,45,48],{},"Each month, payroll estimates your annual income and withholds one month's share of the annual tax. When a bonus lands, that month's income spikes — and the ",[30,42,43],{},"extra"," income sits on top of your salary, so it's taxed at your ",[22,46,47],{},"marginal rate"," from the first rand.",[10,50,51,52,55],{},"Your normal salary enjoys the lower brackets and the rebate. The bonus doesn't get to reuse them — they're already used. So if your marginal rate is 26%, expect roughly 26% of the bonus to go to PAYE. It ",[30,53,54],{},"feels"," heavier than your usual payslip deduction because your average rate is much lower.",[14,57,59],{"id":58},"sometimes-payroll-over-withholds","Sometimes payroll over-withholds",[10,61,62,63,66],{},"If your employer taxes the bonus by annualising it (treating the spike as if you earn that much every month), too much PAYE can be withheld. That's not money lost — it comes back as a ",[22,64,65],{},"refund when you file your tax return",". It's also the main reason many salaried people get refunds at all.",[14,68,70],{"id":69},"a-worked-example","A worked example",[10,72,73],{},"Salary R25,000\u002Fmonth (R300,000\u002Fyear), December bonus R25,000:",[75,76,77,84,90],"ul",{},[78,79,80,81],"li",{},"Marginal rate at R300,000: ",[22,82,83],{},"26%",[78,85,86,87],{},"Tax on the bonus: about ",[22,88,89],{},"R6,500",[78,91,92,93,96],{},"You take home roughly ",[22,94,95],{},"R18,500"," of it",[10,98,99],{},"Meanwhile your regular monthly PAYE is about R3,367 — an effective rate closer to 13%. The bonus didn't get punished; it just didn't get the head start.",[14,101,103],{"id":102},"make-the-bonus-work","Make the bonus work",[10,105,106],{},"Two things worth knowing before you spend it:",[108,109,110,122],"ol",{},[78,111,112,113,116,117,33],{},"An ",[22,114,115],{},"RA contribution"," before the end of February is deducted at that same marginal rate — a R10,000 top-up costs a 26% taxpayer only R7,400 after the refund. Numbers in the ",[118,119,121],"a",{"href":120},"\u002Ftools\u002Fra","RA calculator",[78,123,124,125,128,129,133],{},"Unused ",[22,126,127],{},"TFSA room"," expires at the end of the tax year — the ",[118,130,132],{"href":131},"\u002Ftools\u002Ftfsa","TFSA tracker"," shows what you have left.",{"title":135,"searchDepth":136,"depth":136,"links":137},"",2,[138,139,140,141,142],{"id":16,"depth":136,"text":17},{"id":36,"depth":136,"text":37},{"id":58,"depth":136,"text":59},{"id":69,"depth":136,"text":70},{"id":102,"depth":136,"text":103},"Tax & payslip","2026-07-22","There's no special 'bonus tax' in South Africa. Here's why your 13th cheque looks half-eaten, and why some of it often comes back at filing season.","md",{},true,"\u002Flearn\u002Fbonus-13th-cheque-tax","5 min read",{"title":5,"description":145},{"loc":149},"learn\u002Fbonus-13th-cheque-tax","Y2wIX0J6jNqTs-3TUQ1UCh6lBP07pxS2eYZ_p76gGXM",[156,341,456],{"id":157,"title":158,"body":159,"category":143,"date":144,"description":333,"extension":146,"meta":334,"navigation":148,"path":335,"readingTime":336,"seo":337,"sitemap":338,"stem":339,"__hash__":340},"learn\u002Flearn\u002Fhow-tax-brackets-work.md","How income tax brackets actually work in South Africa",{"type":7,"value":160,"toc":326},[161,168,172,183,186,261,267,271,282,286,304,307,311,314,318],[10,162,163,164,167],{},"The most expensive tax myth in South Africa: ",[30,165,166],{},"\"If I get a raise into the next bracket, I'll take home less.\""," It's wrong, and understanding why will make every payslip and bonus make sense.",[14,169,171],{"id":170},"brackets-are-steps-not-switches","Brackets are steps, not switches",[10,173,174,175,178,179,182],{},"South Africa uses ",[22,176,177],{},"marginal"," tax rates. Each chunk of your income is taxed at that chunk's rate — only the rand ",[30,180,181],{},"above"," a bracket line pays the higher rate.",[10,184,185],{},"For the 2026\u002F27 tax year:",[187,188,189,202],"table",{},[190,191,192],"thead",{},[193,194,195,199],"tr",{},[196,197,198],"th",{},"Taxable income (per year)",[196,200,201],{},"Rate on that slice",[203,204,205,214,221,229,237,245,253],"tbody",{},[193,206,207,211],{},[208,209,210],"td",{},"Up to R237,100",[208,212,213],{},"18%",[193,215,216,219],{},[208,217,218],{},"R237,101 – R370,500",[208,220,83],{},[193,222,223,226],{},[208,224,225],{},"R370,501 – R512,800",[208,227,228],{},"31%",[193,230,231,234],{},[208,232,233],{},"R512,801 – R673,000",[208,235,236],{},"36%",[193,238,239,242],{},[208,240,241],{},"R673,001 – R857,900",[208,243,244],{},"39%",[193,246,247,250],{},[208,248,249],{},"R857,901 – R1,817,000",[208,251,252],{},"41%",[193,254,255,258],{},[208,256,257],{},"Above R1,817,000",[208,259,260],{},"45%",[10,262,263,264],{},"Earn R250,000? Only the R12,900 above R237,100 is taxed at 26%. Everything below is still taxed at 18%. ",[22,265,266],{},"A raise can never reduce your take-home pay.",[14,268,270],{"id":269},"the-rebate-your-tax-free-head-start","The rebate: your tax-free head start",[10,272,273,274,277,278,281],{},"Everyone under 65 gets the ",[22,275,276],{},"primary rebate of R17,235"," knocked straight off their tax bill. That's why you only start paying income tax above the ",[22,279,280],{},"tax threshold of R95,750"," a year (about R7,979\u002Fmonth).",[14,283,285],{"id":284},"your-marginal-rate-vs-your-effective-rate","Your marginal rate vs your effective rate",[75,287,288,298],{},[78,289,290,293,294,297],{},[22,291,292],{},"Marginal rate",": the rate on your ",[30,295,296],{},"next"," rand. This is what matters for decisions — like how much an RA contribution saves you.",[78,299,300,303],{},[22,301,302],{},"Effective rate",": your total tax ÷ total income. Always lower than your marginal rate.",[10,305,306],{},"Someone on R400,000 has a 31% marginal rate but an effective rate around 19%. When people say \"I pay 31% tax\", they usually don't.",[14,308,310],{"id":309},"bracket-creep-the-silent-increase","Bracket creep: the silent increase",[10,312,313],{},"The bracket lines above haven't moved since 2023\u002F24. When brackets don't rise with inflation, your inflationary raise pushes more of your income into higher slices — a tax increase nobody announced. It's why your raise can feel smaller than the percentage suggested.",[14,315,317],{"id":316},"see-it-on-your-own-payslip","See it on your own payslip",[10,319,320,321,325],{},"Our ",[118,322,324],{"href":323},"\u002Ftools\u002Fpayslip","payslip decoder"," applies these exact tables to your salary and shows the tax on each slice, plus UIF and medical credits, line by line.",{"title":135,"searchDepth":136,"depth":136,"links":327},[328,329,330,331,332],{"id":170,"depth":136,"text":171},{"id":269,"depth":136,"text":270},{"id":284,"depth":136,"text":285},{"id":309,"depth":136,"text":310},{"id":316,"depth":136,"text":317},"No, moving into a higher bracket doesn't mean all your money is taxed more. How marginal rates, rebates and the tax threshold really work.",{},"\u002Flearn\u002Fhow-tax-brackets-work","6 min read",{"title":158,"description":333},{"loc":335},"learn\u002Fhow-tax-brackets-work","e9ZuJm3KivTipYCdTA_6Wd2YjVg-5eoXD_gKiE-I-w4",{"id":342,"title":343,"body":344,"category":143,"date":144,"description":449,"extension":146,"meta":450,"navigation":148,"path":451,"readingTime":336,"seo":452,"sitemap":453,"stem":454,"__hash__":455},"learn\u002Flearn\u002Fside-hustle-tax-basics.md","Side hustle income and SARS: what you need to know",{"type":7,"value":345,"toc":442},[346,349,353,367,370,374,381,395,402,406,417,424,428,435,439],[10,347,348],{},"Design work on weekends, tutoring, a resale hustle, freelance code — extra income is normal now. What's less known: SARS's rules for it. The good news is they're manageable if you know three things.",[14,350,352],{"id":351},"_1-yes-its-taxable-all-of-it","1. Yes, it's taxable — all of it",[10,354,355,356,359,360,362,363,366],{},"There's no \"under the table\" threshold for side income. Money earned from freelancing or trading is ",[22,357,358],{},"added to your salary"," and taxed at your ",[22,361,47],{}," — because your salary already used up the lower brackets and the rebate (",[118,364,365],{"href":335},"how brackets work",").",[10,368,369],{},"Earn R300,000 at your job and R30,000 on the side? That R30,000 is taxed at 26% — roughly R7,800. Price your side work knowing SARS is a silent partner. (Occasional sales of personal stuff — your old couch — aren't income. A pattern of buying-to-resell is.)",[14,371,373],{"id":372},"_2-you-can-deduct-real-expenses","2. You can deduct real expenses",[10,375,376,377,380],{},"Side income is taxed on ",[22,378,379],{},"profit, not revenue",". Costs genuinely incurred to earn it are deductible:",[75,382,383,386,389,392],{},[78,384,385],{},"Software, hosting, tools and materials",[78,387,388],{},"A fair share of data\u002Finternet used for the work",[78,390,391],{},"Travel to clients (keep a logbook)",[78,393,394],{},"Equipment — laptops and gear, written off over time",[10,396,397,398,401],{},"Two habits make this painless: a ",[22,399,400],{},"separate bank account"," for hustle money, and a folder (even just photos) of every invoice and receipt. Reconstructing a year of expenses in July is misery; capturing them weekly is nothing.",[14,403,405],{"id":404},"_3-provisional-tax-paying-as-you-go","3. Provisional tax: paying as you go",[10,407,408,409,412,413,416],{},"PAYE handles tax on your salary automatically. Nobody withholds tax on side income — so SARS may classify you as a ",[22,410,411],{},"provisional taxpayer",", which just means paying your estimated tax in ",[22,414,415],{},"two instalments"," (end of August and end of February) instead of one surprise bill at filing season.",[10,418,419,420,423],{},"It's a payment schedule, not an extra tax. The real risk is spending your gross side income and meeting February with nothing saved. The fix: ",[22,421,422],{},"move your marginal-rate percentage of every side payment into a separate savings pocket the day it lands",". If it turns out you over-saved, that's a bonus, not a loss.",[14,425,427],{"id":426},"when-it-grows","When it grows",[10,429,430,431,434],{},"Once a hustle becomes a real business, other structures exist — registering a company, ",[22,432,433],{},"turnover tax"," for small businesses (a simplified flat-rate system for turnover under R1 million), and VAT registration once turnover crosses R1 million. Those are good problems, and worth professional advice when you get there.",[14,436,438],{"id":437},"the-bottom-line","The bottom line",[10,440,441],{},"Declare it, deduct honestly, and save the tax as you earn. A side hustle that's clean with SARS is an asset; one that isn't is a liability with interest.",{"title":135,"searchDepth":136,"depth":136,"links":443},[444,445,446,447,448],{"id":351,"depth":136,"text":352},{"id":372,"depth":136,"text":373},{"id":404,"depth":136,"text":405},{"id":426,"depth":136,"text":427},{"id":437,"depth":136,"text":438},"Freelance gigs, weekend work, selling online — when extra income becomes taxable, what you can deduct, and what provisional tax means.",{},"\u002Flearn\u002Fside-hustle-tax-basics",{"title":343,"description":449},{"loc":451},"learn\u002Fside-hustle-tax-basics","nSJ1s3rTA9kU1_Z83JUrQrjJMzEh7w6MUgpc_YaLt20",{"id":457,"title":458,"body":459,"category":143,"date":144,"description":582,"extension":146,"meta":583,"navigation":148,"path":584,"readingTime":150,"seo":585,"sitemap":586,"stem":587,"__hash__":588},"learn\u002Flearn\u002Fuif-explained.md","UIF: the deduction you ignore until you need it",{"type":7,"value":460,"toc":575},[461,464,468,491,496,500,503,535,539,550,557,561,568,572],[10,462,463],{},"Every payslip, 1% quietly disappears to the Unemployment Insurance Fund. Most people can't say what it buys. It's real insurance — and knowing the rules matters most in the exact moments you're too stressed to learn them.",[14,465,467],{"id":466},"what-you-pay","What you pay",[75,469,470,480],{},[78,471,472,475,476,479],{},[22,473,474],{},"You contribute 1%"," of your salary, and ",[22,477,478],{},"your employer adds another 1%"," on your behalf.",[78,481,482,483,486,487,490],{},"Contributions are calculated on salary up to a ceiling of ",[22,484,485],{},"R17,712 per month"," — so the most that leaves your payslip is ",[22,488,489],{},"R177.12",", no matter how much you earn.",[10,492,493,494,33],{},"See it in context on the ",[118,495,324],{"href":323},[14,497,499],{"id":498},"what-it-covers","What it covers",[10,501,502],{},"UIF pays out in five situations:",[108,504,505,511,517,523,529],{},[78,506,507,510],{},[22,508,509],{},"Unemployment"," — retrenchment, dismissal, or your contract ending. (Resigning generally doesn't qualify.)",[78,512,513,516],{},[22,514,515],{},"Maternity leave"," — up to about four months, claimable even if you plan to return to work.",[78,518,519,522],{},[22,520,521],{},"Parental and adoption leave"," — shorter benefit for the other parent.",[78,524,525,528],{},[22,526,527],{},"Illness"," — when you're unable to work for an extended period and not on full pay.",[78,530,531,534],{},[22,532,533],{},"Death"," — your dependants can claim your accumulated benefit.",[14,536,538],{"id":537},"how-much-it-pays","How much it pays",[10,540,541,542,545,546,549],{},"You build up ",[22,543,544],{},"one day of credit for every four days worked",", up to a maximum of about ",[22,547,548],{},"365 days"," of benefits. The benefit rate slides from roughly 60% of earnings for low earners down to around 38% for higher earners, calculated on the capped salary — so the ceiling limits payouts too.",[10,551,552,553,33],{},"It won't replace your salary. It's a cushion, not a hammock — which is why an ",[118,554,556],{"href":555},"\u002Flearn\u002Femergency-fund-first","emergency fund still matters",[14,558,560],{"id":559},"how-to-claim","How to claim",[10,562,563,564,567],{},"Claims go through ",[22,565,566],{},"uFiling"," (ufiling.labour.gov.za) or a Department of Labour office. You'll need your ID, proof of banking, and a UI-19 form from your employer. Claim as soon as possible — there are time limits, and processing can take weeks.",[14,569,571],{"id":570},"the-catch-to-check-now","The catch to check now",[10,573,574],{},"Your employer is legally required to register you and pay contributions over. Some don't. Check that UIF appears on your payslip and, if you ever leave, insist on the UI-19 — chasing paperwork from a former employer is much harder than checking today.",{"title":135,"searchDepth":136,"depth":136,"links":576},[577,578,579,580,581],{"id":466,"depth":136,"text":467},{"id":498,"depth":136,"text":499},{"id":537,"depth":136,"text":538},{"id":559,"depth":136,"text":560},{"id":570,"depth":136,"text":571},"That 1% on your payslip is insurance against job loss, illness and maternity leave. What UIF covers, what it pays, and how to claim.",{},"\u002Flearn\u002Fuif-explained",{"title":458,"description":582},{"loc":584},"learn\u002Fuif-explained","B0kCkTC2hcI3OdRhMnaNl0jkb1VM5L4VVvQdNnaWge8",1785421695862]