Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 49 381
PAYE (Pay As You Earn)
- R 11 394
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 11 571
Net pay
* R 37 810
Marginal tax rate
36.0%
Average tax rate
23.4%
76.6%
Net pay
23.4%
Total tax
Total tax
Net pay
The Taxberg
R 37 810
Net pay
R 671
Tax the employer pays
R 11 571
Tax you pay
Total tax paid
R 12 242
Did you know your employer also pays tax on your salary? It costs the employer R 671 to pay you R 49 381. In other words, every time you spend R 10 of your hard-earned money, R 2.48 goes to the government.
Real tax rate
24.5%
So, with you and the employer both paying tax, what used to be a 23.4% tax rate now rises to 24.5%, meaning your real tax rate is actually 1.1% higher than what it seemed at first.
Summary
If you make R 592 572 a year living in South Africa, you will be taxed R 138 856. That means that your net pay will be R 453 716 per year, or R 37 810 per month. Your average tax rate is 23.4% and your marginal tax rate is 36.0%. 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 36, hence, your net pay will only increase by R 64.
Bonus Example
A R 1 000 bonus will generate an extra R 640 of net incomes. A R 5 000 bonus will generate an extra R 3 200 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.