Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 85 999
PAYE (Pay As You Earn)
- R 25 911
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 26 088
Net pay
* R 59 911
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 59 911
Net pay
R 1 037
Tax the employer pays
R 26 088
Tax you pay
Total tax paid
R 27 125
Did you know your employer also pays tax on your salary? It costs the employer R 1 037 to pay you R 85 999. In other words, every time you spend R 10 of your hard-earned money, R 3.15 goes to the government.
Real tax rate
31.2%
So, with you and the employer both paying tax, what used to be a 30.3% tax rate now rises to 31.2%, meaning your real tax rate is actually 0.9% higher than what it seemed at first.
Summary
If you make R 1 031 988 a year living in South Africa, you will be taxed R 313 052. That means that your net pay will be R 718 936 per year, or R 59 911 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.
North America
Country 
Net pay
Average tax
Rank
USA
ZAR 802 104
22.3%
1
Canada
ZAR 732 465
29.0%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
ZAR 927 396
10.1%
1
Chile
ZAR 856 289
17.0%
2
Costa Rica
ZAR 847 879
17.8%
3
Puerto Rico
ZAR 835 817
19.0%
4
Panama
ZAR 807 754
21.7%
5
Ecuador
ZAR 802 259
22.3%
6
Colombia
ZAR 767 732
25.6%
7
Peru
ZAR 765 365
25.8%
8
Brazil
ZAR 758 315
26.5%
9
Mexico
ZAR 741 361
28.2%
10
Uruguay
ZAR 724 881
29.8%
11
Argentina
ZAR 670 667
35.0%
12
Show more
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.