Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 198 514
PAYE (Pay As You Earn)
- R 74 210
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 74 387
Net pay
* R 124 127
Marginal tax rate
45.0%
Average tax rate
37.5%
62.5%
Net pay
37.5%
Total tax
Total tax
Net pay
The Taxberg
R 124 127
Net pay
R 2 162
Tax the employer pays
R 74 387
Tax you pay
Total tax paid
R 76 550
Did you know your employer also pays tax on your salary? It costs the employer R 2 162 to pay you R 198 514. In other words, every time you spend R 10 of your hard-earned money, R 3.86 goes to the government.
Real tax rate
38.1%
So, with you and the employer both paying tax, what used to be a 37.5% tax rate now rises to 38.1%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make R 2 382 168 a year living in South Africa, you will be taxed R 892 648. That means that your net pay will be R 1 489 520 per year, or R 124 127 per month. Your average tax rate is 37.5% 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.
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.