Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 72 576
PAYE (Pay As You Earn)
- R 20 407
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 20 584
Net pay
* R 51 992
Marginal tax rate
41.0%
Average tax rate
28.4%
71.6%
Net pay
28.4%
Total tax
Total tax
Net pay
The Taxberg
R 51 992
Net pay
R 903
Tax the employer pays
R 20 584
Tax you pay
Total tax paid
R 21 487
Did you know your employer also pays tax on your salary? It costs the employer R 903 to pay you R 72 576. In other words, every time you spend R 10 of your hard-earned money, R 2.96 goes to the government.
Real tax rate
29.2%
So, with you and the employer both paying tax, what used to be a 28.4% tax rate now rises to 29.2%, meaning your real tax rate is actually 0.8% higher than what it seemed at first.
Summary
If you make R 870 912 a year living in South Africa, you will be taxed R 247 010. That means that your net pay will be R 623 902 per year, or R 51 992 per month. Your average tax rate is 28.4% and your marginal tax rate is 41.0%. 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 41, hence, your net pay will only increase by R 59.
Bonus Example
A R 1 000 bonus will generate an extra R 590 of net incomes. A R 5 000 bonus will generate an extra R 2 950 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.