Salary Rate
Year
Month
Biweekly
Week
Day
Hour
Withholding
Salary
R 10 000
PAYE (Pay As You Earn)
- R 615
Unemployment Insurance Fund
- R 100
Total tax
- R 715
Net pay
* R 9 285
Marginal tax rate
19.0%
Average tax rate
7.2%
92.9%
Net pay
7.2%
Total tax
Total tax
Net pay
Summary
If you make R 120 000 a year living in South Africa, you will be taxed R 8 580. That means that your net pay will be R 111 420 per year, or R 9 285 per month. Your average tax rate is 7.2% and your marginal tax rate is 19.0%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of R 100 in your salary will be taxed R 19, hence, your net pay will only increase by R 81.
Bonus Example
A R 1 000 bonus will generate an extra R 810 of net incomes. A R 5 000 bonus will generate an extra R 4 050 of net incomes.
NOTE* Withholding is calculated based on the tables of South Africa, 2020 income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.