Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 16 248
PAYE (Pay As You Earn)
- R 1 556
UIF (Unemployment Insurance Fund)
- R 162
Total tax
- R 1 718
Net pay
* R 14 530
Marginal tax rate
19.0%
Average tax rate
10.6%
89.4%
Net pay
10.6%
Total tax
Total tax
Net pay
The Taxberg
R 14 530
Net pay
R 325
Tax the employer pays
R 1 718
Tax you pay
Total tax paid
R 2 043
Did you know your employer also pays tax on your salary? It costs the employer R 325 to pay you R 16 248. In other words, every time you spend R 10 of your hard-earned money, R 1.26 goes to the government.
Real tax rate
12.3%
So, with you and the employer both paying tax, what used to be a 10.6% tax rate now rises to 12.3%, meaning your real tax rate is actually 1.7% higher than what it seemed at first.
Summary
If you make R 194 976 a year living in South Africa, you will be taxed R 20 620. That means that your net pay will be R 174 356 per year, or R 14 530 per month. Your average tax rate is 10.6% 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
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.