Every summer, the same question pops up:
“Don’t they deduct tax from holiday pay?”
Yes – holiday pay is always taxable.
But what’s special is how and when the tax is deducted.
In June, tax is often not deducted, because your tax card is set up that way.
It may feel like a “tax-free” bonus – but it’s not.
The tax is simply distributed across the rest of the year, meaning you pay a bit more in other months.
Do you receive holiday pay in a different month than June?
Then tax will be deducted as normal – because the exemption only applies… to June.
In short:
You pay tax – no matter what.
Just not necessarily in June.
