Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 261 812
PAYE (Pay As You Earn)
- R 102 694
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 102 871
Net pay
* R 158 941
Marginal tax rate
45.0%
Average tax rate
39.3%
60.7%
Net pay
39.3%
Total tax
Total tax
Net pay
The Taxberg
R 158 941
Net pay
R 2 795
Tax the employer pays
R 102 871
Tax you pay
Total tax paid
R 105 667
Did you know your employer also pays tax on your salary? It costs the employer R 2 795 to pay you R 261 812. In other words, every time you spend R 10 of your hard-earned money, R 4.04 goes to the government.
Real tax rate
39.9%
So, with you and the employer both paying tax, what used to be a 39.3% tax rate now rises to 39.9%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make R 3 141 744 a year living in South Africa, you will be taxed R 1 234 457. That means that your net pay will be R 1 907 287 per year, or R 158 941 per month. Your average tax rate is 39.3% 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.