Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 39 140
PAYE (Pay As You Earn)
- R 7 802
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 7 979
Net pay
* R 31 161
Marginal tax rate
33.8%
Average tax rate
20.4%
79.6%
Net pay
20.4%
Total tax
Total tax
Net pay
The Taxberg
R 31 161
Net pay
R 569
Tax the employer pays
R 7 979
Tax you pay
Total tax paid
R 8 548
Did you know your employer also pays tax on your salary? It costs the employer R 569 to pay you R 39 140. In other words, every time you spend R 10 of your hard-earned money, R 2.18 goes to the government.
Real tax rate
21.5%
So, with you and the employer both paying tax, what used to be a 20.4% tax rate now rises to 21.5%, meaning your real tax rate is actually 1.1% higher than what it seemed at first.
Summary
If you make R 469 680 a year living in South Africa, you will be taxed R 95 752. That means that your net pay will be R 373 928 per year, or R 31 161 per month. Your average tax rate is 20.4% and your marginal tax rate is 33.8%. 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 33.79, hence, your net pay will only increase by R 66.21.
Bonus Example
A R 1 000 bonus will generate an extra R 662 of net incomes. A R 5 000 bonus will generate an extra R 3 311 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.