Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 100 694
PAYE (Pay As You Earn)
- R 31 935
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 32 113
Net pay
* R 68 581
Marginal tax rate
41.0%
Average tax rate
31.9%
68.1%
Net pay
31.9%
Total tax
Total tax
Net pay
The Taxberg
R 68 581
Net pay
R 1 184
Tax the employer pays
R 32 113
Tax you pay
Total tax paid
R 33 297
Did you know your employer also pays tax on your salary? It costs the employer R 1 184 to pay you R 100 694. In other words, every time you spend R 10 of your hard-earned money, R 3.31 goes to the government.
Real tax rate
32.7%
So, with you and the employer both paying tax, what used to be a 31.9% tax rate now rises to 32.7%, meaning your real tax rate is actually 0.8% higher than what it seemed at first.
Summary
If you make R 1 208 328 a year living in South Africa, you will be taxed R 385 351. That means that your net pay will be R 822 977 per year, or R 68 581 per month. Your average tax rate is 31.9% and your marginal tax rate is 41.0%. 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 41, hence, your net pay will only increase by R 59.
Bonus Example
A R 1 000 bonus will generate an extra R 590 of net incomes. A R 5 000 bonus will generate an extra R 2 950 of net incomes.
NOTE* Withholding is calculated based on the tables of South Africa, 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.