Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 42 232
PAYE (Pay As You Earn)
- R 8 847
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 9 024
Net pay
* R 33 208
Marginal tax rate
33.8%
Average tax rate
21.4%
78.6%
Net pay
21.4%
Total tax
Total tax
Net pay
The Taxberg
R 33 208
Net pay
R 599
Tax the employer pays
R 9 024
Tax you pay
Total tax paid
R 9 623
Did you know your employer also pays tax on your salary? It costs the employer R 599 to pay you R 42 232. In other words, every time you spend R 10 of your hard-earned money, R 2.28 goes to the government.
Real tax rate
22.5%
So, with you and the employer both paying tax, what used to be a 21.4% tax rate now rises to 22.5%, meaning your real tax rate is actually 1.1% higher than what it seemed at first.
Summary
If you make R 506 784 a year living in South Africa, you will be taxed R 108 288. That means that your net pay will be R 398 496 per year, or R 33 208 per month. Your average tax rate is 21.4% 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 33.78, hence, your net pay will only increase by R 66.22.
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.