Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 1 708 460
PAYE (Pay As You Earn)
- R 753 686
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 753 863
Net pay
* R 954 597
Marginal tax rate
45.0%
Average tax rate
44.1%
55.9%
Net pay
44.1%
Total tax
Total tax
Net pay
The Taxberg
R 954 597
Net pay
R 17 262
Tax the employer pays
R 753 863
Tax you pay
Total tax paid
R 771 125
Did you know your employer also pays tax on your salary? It costs the employer R 17 262 to pay you R 1 708 460. In other words, every time you spend R 10 of your hard-earned money, R 4.51 goes to the government.
Real tax rate
44.7%
So, with you and the employer both paying tax, what used to be a 44.1% tax rate now rises to 44.7%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make R 20 501 520 a year living in South Africa, you will be taxed R 9 046 356. That means that your net pay will be R 11 455 164 per year, or R 954 597 per month. Your average tax rate is 44.1% and your marginal tax rate is 45.0%. 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 45, hence, your net pay will only increase by R 55.
Bonus Example
A R 1 000 bonus will generate an extra R 550 of net incomes. A R 5 000 bonus will generate an extra R 2 750 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
ZAR 11 560 153
43.6%
1
Canada
ZAR 9 948 991
51.5%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
ZAR 18 159 509
11.4%
1
Brazil
ZAR 14 873 725
27.5%
2
Costa Rica
ZAR 13 966 022
31.9%
3
Panama
ZAR 13 804 724
32.7%
4
Mexico
ZAR 13 412 974
34.6%
5
Puerto Rico
ZAR 13 356 818
34.9%
6
Argentina
ZAR 13 325 863
35.0%
7
Uruguay
ZAR 12 944 066
36.9%
8
Colombia
ZAR 12 930 746
36.9%
9
Chile
ZAR 12 740 904
37.9%
10
Peru
ZAR 12 699 325
38.1%
11
Ecuador
ZAR 11 941 449
41.8%
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.