Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 120 840
PAYE (Pay As You Earn)
- R 40 195
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 40 372
Net pay
* R 80 468
Marginal tax rate
41.0%
Average tax rate
33.4%
66.6%
Net pay
33.4%
Total tax
Total tax
Net pay
The Taxberg
R 80 468
Net pay
R 1 386
Tax the employer pays
R 40 372
Tax you pay
Total tax paid
R 41 758
Did you know your employer also pays tax on your salary? It costs the employer R 1 386 to pay you R 120 840. In other words, every time you spend R 10 of your hard-earned money, R 3.46 goes to the government.
Real tax rate
34.2%
So, with you and the employer both paying tax, what used to be a 33.4% tax rate now rises to 34.2%, meaning your real tax rate is actually 0.8% higher than what it seemed at first.
Summary
If you make R 1 450 080 a year living in South Africa, you will be taxed R 484 469. That means that your net pay will be R 965 611 per year, or R 80 468 per month. Your average tax rate is 33.4% 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.
North America
Country 
Net pay
Average tax
Rank
USA
ZAR 1 069 648
26.2%
1
Canada
ZAR 994 566
31.4%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
ZAR 1 297 441
10.5%
1
Chile
ZAR 1 165 545
19.6%
2
Costa Rica
ZAR 1 148 698
20.8%
3
Puerto Rico
ZAR 1 095 328
24.5%
4
Panama
ZAR 1 087 888
25.0%
5
Ecuador
ZAR 1 063 412
26.7%
6
Brazil
ZAR 1 061 431
26.8%
7
Colombia
ZAR 1 060 986
26.8%
8
Uruguay
ZAR 1 051 757
27.5%
9
Peru
ZAR 1 030 318
29.0%
10
Mexico
ZAR 1 009 629
30.4%
11
Argentina
ZAR 942 427
35.0%
12
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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.