Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 575 263
PAYE (Pay As You Earn)
- R 243 747
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 243 924
Net pay
* R 331 339
Marginal tax rate
45.0%
Average tax rate
42.4%
57.6%
Net pay
42.4%
Total tax
Total tax
Net pay
The Taxberg
R 331 339
Net pay
R 5 930
Tax the employer pays
R 243 924
Tax you pay
Total tax paid
R 249 854
Did you know your employer also pays tax on your salary? It costs the employer R 5 930 to pay you R 575 263. In other words, every time you spend R 10 of your hard-earned money, R 4.34 goes to the government.
Real tax rate
43.0%
So, with you and the employer both paying tax, what used to be a 42.4% tax rate now rises to 43.0%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make R 6 903 156 a year living in South Africa, you will be taxed R 2 927 093. That means that your net pay will be R 3 976 063 per year, or R 331 339 per month. Your average tax rate is 42.4% 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 4 250 555
38.4%
1
Canada
ZAR 3 629 777
47.4%
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.