Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 426 924
PAYE (Pay As You Earn)
- R 176 995
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 177 172
Net pay
* R 249 752
Marginal tax rate
45.0%
Average tax rate
41.5%
58.5%
Net pay
41.5%
Total tax
Total tax
Net pay
The Taxberg
R 249 752
Net pay
R 4 446
Tax the employer pays
R 177 172
Tax you pay
Total tax paid
R 181 618
Did you know your employer also pays tax on your salary? It costs the employer R 4 446 to pay you R 426 924. In other words, every time you spend R 10 of your hard-earned money, R 4.25 goes to the government.
Real tax rate
42.1%
So, with you and the employer both paying tax, what used to be a 41.5% tax rate now rises to 42.1%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make R 5 123 088 a year living in South Africa, you will be taxed R 2 126 062. That means that your net pay will be R 2 997 026 per year, or R 249 752 per month. Your average tax rate is 41.5% 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.
Compare average tax
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.