Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 987 540
PAYE (Pay As You Earn)
- R 429 272
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 429 449
Net pay
* R 558 091
Marginal tax rate
45.0%
Average tax rate
43.5%
56.5%
Net pay
43.5%
Total tax
Total tax
Net pay
The Taxberg
R 558 091
Net pay
R 10 053
Tax the employer pays
R 429 449
Tax you pay
Total tax paid
R 439 502
Did you know your employer also pays tax on your salary? It costs the employer R 10 053 to pay you R 987 540. In other words, every time you spend R 10 of your hard-earned money, R 4.45 goes to the government.
Real tax rate
44.1%
So, with you and the employer both paying tax, what used to be a 43.5% tax rate now rises to 44.1%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make R 11 850 480 a year living in South Africa, you will be taxed R 5 153 388. That means that your net pay will be R 6 697 092 per year, or R 558 091 per month. Your average tax rate is 43.5% 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 6 949 149
41.4%
1
Canada
ZAR 5 928 818
50.0%
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.