Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 31 063
PAYE (Pay As You Earn)
- R 5 297
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 5 474
Net pay
* R 25 589
Marginal tax rate
30.5%
Average tax rate
17.6%
82.4%
Net pay
17.6%
Total tax
Total tax
Net pay
The Taxberg
R 25 589
Net pay
R 488
Tax the employer pays
R 5 474
Tax you pay
Total tax paid
R 5 962
Did you know your employer also pays tax on your salary? It costs the employer R 488 to pay you R 31 063. In other words, every time you spend R 10 of your hard-earned money, R 1.92 goes to the government.
Real tax rate
18.9%
So, with you and the employer both paying tax, what used to be a 17.6% tax rate now rises to 18.9%, meaning your real tax rate is actually 1.3% higher than what it seemed at first.
Summary
If you make R 372 756 a year living in South Africa, you will be taxed R 65 689. That means that your net pay will be R 307 067 per year, or R 25 589 per month. Your average tax rate is 17.6% and your marginal tax rate is 30.5%. 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 30.47, hence, your net pay will only increase by R 69.53.
Bonus Example
A R 1 000 bonus will generate an extra R 695 of net incomes. A R 5 000 bonus will generate an extra R 3 477 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.