Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 57 126
PAYE (Pay As You Earn)
- R 14 295
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 14 472
Net pay
* R 42 654
Marginal tax rate
38.7%
Average tax rate
25.3%
74.7%
Net pay
25.3%
Total tax
Total tax
Net pay
The Taxberg
R 42 654
Net pay
R 748
Tax the employer pays
R 14 472
Tax you pay
Total tax paid
R 15 220
Did you know your employer also pays tax on your salary? It costs the employer R 748 to pay you R 57 126. In other words, every time you spend R 10 of your hard-earned money, R 2.66 goes to the government.
Real tax rate
26.3%
So, with you and the employer both paying tax, what used to be a 25.3% tax rate now rises to 26.3%, meaning your real tax rate is actually 1% higher than what it seemed at first.
Summary
If you make R 685 512 a year living in South Africa, you will be taxed R 173 662. That means that your net pay will be R 511 850 per year, or R 42 654 per month. Your average tax rate is 25.3% and your marginal tax rate is 38.7%. 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 38.72, hence, your net pay will only increase by R 61.28.
Bonus Example
A R 1 000 bonus will generate an extra R 613 of net incomes. A R 5 000 bonus will generate an extra R 3 064 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.