Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 520 245
PAYE (Pay As You Earn)
- R 218 989
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 219 166
Net pay
* R 301 079
Marginal tax rate
45.0%
Average tax rate
42.1%
57.9%
Net pay
42.1%
Total tax
Total tax
Net pay
The Taxberg
R 301 079
Net pay
R 5 380
Tax the employer pays
R 219 166
Tax you pay
Total tax paid
R 224 546
Did you know your employer also pays tax on your salary? It costs the employer R 5 380 to pay you R 520 245. In other words, every time you spend R 10 of your hard-earned money, R 4.32 goes to the government.
Real tax rate
42.7%
So, with you and the employer both paying tax, what used to be a 42.1% tax rate now rises to 42.7%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make R 6 242 940 a year living in South Africa, you will be taxed R 2 629 995. That means that your net pay will be R 3 612 945 per year, or R 301 079 per month. Your average tax rate is 42.1% 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
North America
Country 
Net pay
Average tax
Rank
USA
ZAR 3 885 455
37.8%
1
Canada
ZAR 3 322 972
46.8%
2
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.