Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 18 622
PAYE (Pay As You Earn)
- R 1 994
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 2 171
Net pay
* R 16 451
Marginal tax rate
21.6%
Average tax rate
11.7%
88.3%
Net pay
11.7%
Total tax
Total tax
Net pay
The Taxberg
R 16 451
Net pay
R 363
Tax the employer pays
R 2 171
Tax you pay
Total tax paid
R 2 534
Did you know your employer also pays tax on your salary? It costs the employer R 363 to pay you R 18 622. In other words, every time you spend R 10 of your hard-earned money, R 1.36 goes to the government.
Real tax rate
13.3%
So, with you and the employer both paying tax, what used to be a 11.7% tax rate now rises to 13.3%, meaning your real tax rate is actually 1.6% higher than what it seemed at first.
Summary
If you make R 223 464 a year living in South Africa, you will be taxed R 26 050. That means that your net pay will be R 197 414 per year, or R 16 451 per month. Your average tax rate is 11.7% and your marginal tax rate is 21.6%. 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 21.64, hence, your net pay will only increase by R 78.36.
Bonus Example
A R 1 000 bonus will generate an extra R 784 of net incomes. A R 5 000 bonus will generate an extra R 3 918 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.