Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 700 970
PAYE (Pay As You Earn)
- R 300 315
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 300 493
Net pay
* R 400 477
Marginal tax rate
45.0%
Average tax rate
42.9%
57.1%
Net pay
42.9%
Total tax
Total tax
Net pay
The Taxberg
R 400 477
Net pay
R 7 187
Tax the employer pays
R 300 493
Tax you pay
Total tax paid
R 307 679
Did you know your employer also pays tax on your salary? It costs the employer R 7 187 to pay you R 700 970. In other words, every time you spend R 10 of your hard-earned money, R 4.39 goes to the government.
Real tax rate
43.4%
So, with you and the employer both paying tax, what used to be a 42.9% tax rate now rises to 43.4%, meaning your real tax rate is actually 0.5% higher than what it seemed at first.
Summary
If you make R 8 411 640 a year living in South Africa, you will be taxed R 3 605 910. That means that your net pay will be R 4 805 730 per year, or R 400 477 per month. Your average tax rate is 42.9% 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 5 084 746
39.6%
1
Canada
ZAR 4 330 775
48.5%
2
Africa
Country 
Net pay
Average tax
Rank
Angola
ZAR 6 122 591
27.2%
1
Kenya
ZAR 5 897 280
29.9%
2
Nigeria
ZAR 5 723 838
32.0%
3
Ivory Coast
ZAR 5 717 992
32.0%
4
Ghana
ZAR 5 582 277
33.6%
5
Mozambique
ZAR 5 507 425
34.5%
6
Zambia
ZAR 5 178 422
38.4%
7
Cameroon
ZAR 5 143 640
38.9%
8
Morocco
ZAR 5 138 080
38.9%
9
Senegal
ZAR 5 067 601
39.8%
10
South Africa
ZAR 4 805 730
42.9%
11
Uganda
ZAR 4 690 795
44.2%
12
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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.