Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 85 565
PAYE (Pay As You Earn)
- R 25 733
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 25 910
Net pay
* R 59 655
Marginal tax rate
41.0%
Average tax rate
30.3%
69.7%
Net pay
30.3%
Total tax
Total tax
Net pay
The Taxberg
R 59 655
Net pay
R 1 033
Tax the employer pays
R 25 910
Tax you pay
Total tax paid
R 26 942
Did you know your employer also pays tax on your salary? It costs the employer R 1 033 to pay you R 85 565. In other words, every time you spend R 10 of your hard-earned money, R 3.15 goes to the government.
Real tax rate
31.1%
So, with you and the employer both paying tax, what used to be a 30.3% tax rate now rises to 31.1%, meaning your real tax rate is actually 0.8% higher than what it seemed at first.
Summary
If you make R 1 026 780 a year living in South Africa, you will be taxed R 310 916. That means that your net pay will be R 715 864 per year, or R 59 655 per month. Your average tax rate is 30.3% 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
North America
Country 
Net pay
Average tax
Rank
USA
ZAR 798 772
22.2%
1
Canada
ZAR 728 845
29.0%
2
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.