Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 20 922
PAYE (Pay As You Earn)
- R 2 564
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 2 741
Net pay
* R 18 181
Marginal tax rate
26.0%
Average tax rate
13.1%
86.9%
Net pay
13.1%
Total tax
Total tax
Net pay
The Taxberg
R 18 181
Net pay
R 386
Tax the employer pays
R 2 741
Tax you pay
Total tax paid
R 3 128
Did you know your employer also pays tax on your salary? It costs the employer R 386 to pay you R 20 922. In other words, every time you spend R 10 of your hard-earned money, R 1.49 goes to the government.
Real tax rate
14.7%
So, with you and the employer both paying tax, what used to be a 13.1% tax rate now rises to 14.7%, meaning your real tax rate is actually 1.6% higher than what it seemed at first.
Summary
If you make R 251 064 a year living in South Africa, you will be taxed R 32 897. That means that your net pay will be R 218 167 per year, or R 18 181 per month. Your average tax rate is 13.1% and your marginal tax rate is 26.0%. 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 26, hence, your net pay will only increase by R 74.
Bonus Example
A R 1 000 bonus will generate an extra R 740 of net incomes. A R 5 000 bonus will generate an extra R 3 700 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.