Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 704 166
PAYE (Pay As You Earn)
- R 301 754
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 301 931
Net pay
* R 402 235
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 402 235
Net pay
R 7 219
Tax the employer pays
R 301 931
Tax you pay
Total tax paid
R 309 150
Did you know your employer also pays tax on your salary? It costs the employer R 7 219 to pay you R 704 166. In other words, every time you spend R 10 of your hard-earned money, R 4.39 goes to the government.
Real tax rate
43.5%
So, with you and the employer both paying tax, what used to be a 42.9% tax rate now rises to 43.5%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make R 8 449 992 a year living in South Africa, you will be taxed R 3 623 169. That means that your net pay will be R 4 826 823 per year, or R 402 235 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 5 105 955
39.6%
1
Canada
ZAR 4 348 597
48.5%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
ZAR 7 492 930
11.3%
1
Brazil
ZAR 6 136 368
27.4%
2
Costa Rica
ZAR 5 876 434
30.5%
3
Panama
ZAR 5 760 329
31.8%
4
Uruguay
ZAR 5 624 449
33.4%
5
Mexico
ZAR 5 579 480
34.0%
6
Colombia
ZAR 5 579 603
34.0%
7
Puerto Rico
ZAR 5 565 505
34.1%
8
Chile
ZAR 5 509 988
34.8%
9
Argentina
ZAR 5 492 369
35.0%
10
Peru
ZAR 5 317 764
37.1%
11
Ecuador
ZAR 5 066 474
40.0%
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.