Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 69 498
PAYE (Pay As You Earn)
- R 19 153
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 19 330
Net pay
* R 50 168
Marginal tax rate
40.8%
Average tax rate
27.8%
72.2%
Net pay
27.8%
Total tax
Total tax
Net pay
The Taxberg
R 50 168
Net pay
R 872
Tax the employer pays
R 19 330
Tax you pay
Total tax paid
R 20 202
Did you know your employer also pays tax on your salary? It costs the employer R 872 to pay you R 69 498. In other words, every time you spend R 10 of your hard-earned money, R 2.91 goes to the government.
Real tax rate
28.7%
So, with you and the employer both paying tax, what used to be a 27.8% tax rate now rises to 28.7%, meaning your real tax rate is actually 0.9% higher than what it seemed at first.
Summary
If you make R 833 976 a year living in South Africa, you will be taxed R 231 958. That means that your net pay will be R 602 018 per year, or R 50 168 per month. Your average tax rate is 27.8% and your marginal tax rate is 40.8%. 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 40.75, hence, your net pay will only increase by R 59.25.
Bonus Example
A R 1 000 bonus will generate an extra R 593 of net incomes. A R 5 000 bonus will generate an extra R 2 963 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.