Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 1 800 240
PAYE (Pay As You Earn)
- R 794 987
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 795 164
Net pay
* R 1 005 076
Marginal tax rate
45.0%
Average tax rate
44.2%
55.8%
Net pay
44.2%
Total tax
Total tax
Net pay
The Taxberg
R 1 005 076
Net pay
R 18 180
Tax the employer pays
R 795 164
Tax you pay
Total tax paid
R 813 344
Did you know your employer also pays tax on your salary? It costs the employer R 18 180 to pay you R 1 800 240. In other words, every time you spend R 10 of your hard-earned money, R 4.52 goes to the government.
Real tax rate
44.7%
So, with you and the employer both paying tax, what used to be a 44.2% tax rate now rises to 44.7%, meaning your real tax rate is actually 0.5% higher than what it seemed at first.
Summary
If you make R 21 602 880 a year living in South Africa, you will be taxed R 9 541 968. That means that your net pay will be R 12 060 912 per year, or R 1 005 076 per month. Your average tax rate is 44.2% 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 12 147 178
43.8%
1
Canada
ZAR 10 460 797
51.6%
2
Middle East
Country 
Net pay
Average tax
Rank
Kuwait
ZAR 21 411 577
0.9%
1
Saudi Arabia
ZAR 21 343 219
1.2%
2
Bahrain
ZAR 21 225 830
1.8%
3
United Arab Emirates
ZAR 20 522 736
5.0%
4
Qatar
ZAR 20 522 736
5.0%
5
Oman
ZAR 19 874 650
8.0%
6
Egypt
ZAR 16 207 140
25.0%
7
Lebanon
ZAR 16 205 571
25.0%
8
Turkey
ZAR 12 585 187
41.7%
9
Israel
ZAR 11 243 032
48.0%
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.