Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 144 560
PAYE (Pay As You Earn)
- R 49 947
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 50 124
Net pay
* R 94 436
Marginal tax rate
41.3%
Average tax rate
34.7%
65.3%
Net pay
34.7%
Total tax
Total tax
Net pay
The Taxberg
R 94 436
Net pay
R 1 623
Tax the employer pays
R 50 124
Tax you pay
Total tax paid
R 51 747
Did you know your employer also pays tax on your salary? It costs the employer R 1 623 to pay you R 144 560. In other words, every time you spend R 10 of your hard-earned money, R 3.58 goes to the government.
Real tax rate
35.4%
So, with you and the employer both paying tax, what used to be a 34.7% tax rate now rises to 35.4%, meaning your real tax rate is actually 0.7% higher than what it seemed at first.
Summary
If you make R 1 734 720 a year living in South Africa, you will be taxed R 601 493. That means that your net pay will be R 1 133 227 per year, or R 94 436 per month. Your average tax rate is 34.7% and your marginal tax rate is 41.3%. 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 41.28, hence, your net pay will only increase by R 58.72.
Bonus Example
A R 1 000 bonus will generate an extra R 587 of net incomes. A R 5 000 bonus will generate an extra R 2 936 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.