Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 83 750
PAYE (Pay As You Earn)
- R 24 988
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 25 166
Net pay
* R 58 584
Marginal tax rate
41.0%
Average tax rate
30.0%
70.0%
Net pay
30.0%
Total tax
Total tax
Net pay
The Taxberg
R 58 584
Net pay
R 1 015
Tax the employer pays
R 25 166
Tax you pay
Total tax paid
R 26 180
Did you know your employer also pays tax on your salary? It costs the employer R 1 015 to pay you R 83 750. In other words, every time you spend R 10 of your hard-earned money, R 3.13 goes to the government.
Real tax rate
30.9%
So, with you and the employer both paying tax, what used to be a 30% tax rate now rises to 30.9%, meaning your real tax rate is actually 0.9% higher than what it seemed at first.
Summary
If you make R 1 005 000 a year living in South Africa, you will be taxed R 301 986. That means that your net pay will be R 703 014 per year, or R 58 584 per month. Your average tax rate is 30.1% 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.
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.