Taiwan Year-End Bonus Tax 2027 Calculator
Year-end bonus (年終獎金) in Taiwan is fully taxable as ordinary income. Critically, bonus exceeding 4 months of regular monthly insured salary triggers a 2.11% NHI supplemental premium. Use this tool to estimate your tax + supplemental NHI on bonus.
How Bonus NHI Supplemental 2.11% Works
Taiwan's National Health Insurance applies a 2.11% supplemental premium on year-end bonuses that exceed 4 months of insured monthly salary. Example: monthly salary NT$60,000, bonus NT$300,000. Exempt threshold = 4 × NT$60,000 = NT$240,000. Taxable portion = NT$300,000 − NT$240,000 = NT$60,000. NHI supplemental = NT$60,000 × 2.11% = NT$1,266. Withheld by employer. Source: nhi.gov.tw.
Income Tax on Bonus — Same as Regular Income
Bonus is added to annual income and taxed at progressive rates (5%, 12%, 20%, 30%, 40%). Employers withhold at 5% by default, with reconciliation at annual filing. High earners should check whether withholding covers their actual marginal rate to avoid year-end balance owed.
Tax Planning Tips for Year-End Bonus
(1) Negotiate timing if your bonus is paid in two parts (Lunar New Year + summer), which splits the supplemental NHI calculation across periods. (2) Max out voluntary Labor Pension contributions before December — reduces taxable income. (3) If your bonus pushes you into a higher bracket, consider charitable donation timing.
How Withholding Differs From Final Tax
Employers withhold 5% on bonuses. Your final tax may be higher (if marginal rate 12-40%) or you may be due a refund (if you're a low-bracket worker). Always reconcile at annual filing in May. Source: National Taxation Bureau.