Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 19 015
PAYE (Pay As You Earn)
- R 7 859
UIF (Unemployment Insurance Fund)
- R 8.17
Total tax
- R 7 867
Net pay
* R 11 148
Marginal tax rate
45.0%
Average tax rate
41.4%
58.6%
Net pay
41.4%
Total tax
Total tax
Net pay
The Taxberg
R 11 148
Net pay
R 198
Tax the employer pays
R 7 867
Tax you pay
Total tax paid
R 8 065
Did you know your employer also pays tax on your salary? It costs the employer R 198 to pay you R 19 015. In other words, every time you spend R 10 of your hard-earned money, R 4.24 goes to the government.
Real tax rate
42.0%
So, with you and the employer both paying tax, what used to be a 41.4% tax rate now rises to 42.0%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make R 4 943 900 a year living in South Africa, you will be taxed R 2 045 427. That means that your net pay will be R 2 898 473 per year, or R 241 539 per month. Your average tax rate is 41.4% 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.
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.