Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 13 625
PAYE (Pay As You Earn)
- R 1 084
UIF (Unemployment Insurance Fund)
- R 136
Total tax
- R 1 220
Net pay
* R 12 405
Marginal tax rate
19.0%
Average tax rate
9.0%
91.0%
Net pay
9.0%
Total tax
Total tax
Net pay
The Taxberg
R 12 405
Net pay
R 273
Tax the employer pays
R 1 220
Tax you pay
Total tax paid
R 1 493
Did you know your employer also pays tax on your salary? It costs the employer R 273 to pay you R 13 625. In other words, every time you spend R 10 of your hard-earned money, R 1.10 goes to the government.
Real tax rate
10.7%
So, with you and the employer both paying tax, what used to be a 9% tax rate now rises to 10.7%, meaning your real tax rate is actually 1.7% higher than what it seemed at first.
Summary
If you make R 163 500 a year living in South Africa, you will be taxed R 14 640. That means that your net pay will be R 148 860 per year, or R 12 405 per month. Your average tax rate is 9.0% 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.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
ZAR 148 400
9.2%
1
Canada
ZAR 125 764
23.1%
2
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
ZAR 155 325
5.0%
1
Qatar
ZAR 155 325
5.0%
2
Bahrain
ZAR 150 420
8.0%
3
Oman
ZAR 150 420
8.0%
4
Saudi Arabia
ZAR 147 150
10.0%
5
Kuwait
ZAR 145 515
11.0%
6
Israel
ZAR 142 000
13.2%
7
Egypt
ZAR 127 605
22.0%
8
Lebanon
ZAR 126 036
22.9%
9
Turkey
ZAR 96 066
41.2%
10
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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.