Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 23 215
PAYE (Pay As You Earn)
- R 3 160
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 3 338
Net pay
* R 19 877
Marginal tax rate
26.0%
Average tax rate
14.4%
85.6%
Net pay
14.4%
Total tax
Total tax
Net pay
The Taxberg
R 19 877
Net pay
R 409
Tax the employer pays
R 3 338
Tax you pay
Total tax paid
R 3 747
Did you know your employer also pays tax on your salary? It costs the employer R 409 to pay you R 23 215. In other words, every time you spend R 10 of your hard-earned money, R 1.61 goes to the government.
Real tax rate
15.9%
So, with you and the employer both paying tax, what used to be a 14.4% tax rate now rises to 15.9%, meaning your real tax rate is actually 1.5% higher than what it seemed at first.
Summary
If you make R 278 580 a year living in South Africa, you will be taxed R 40 051. That means that your net pay will be R 238 529 per year, or R 19 877 per month. Your average tax rate is 14.4% 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.