Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 2 008
PAYE (Pay As You Earn)
- R 816
UIF (Unemployment Insurance Fund)
- R 1.02
Total tax
- R 817
Net pay
* R 1 191
Marginal tax rate
45.0%
Average tax rate
40.7%
59.3%
Net pay
40.7%
Total tax
Total tax
Net pay
The Taxberg
R 1 191
Net pay
R 21.10
Tax the employer pays
R 817
Tax you pay
Total tax paid
R 838
Did you know your employer also pays tax on your salary? It costs the employer R 21.10 to pay you R 2 008. In other words, every time you spend R 10 of your hard-earned money, R 4.18 goes to the government.
Real tax rate
41.3%
So, with you and the employer both paying tax, what used to be a 40.7% tax rate now rises to 41.3%, meaning your real tax rate is actually 0.59999999999999% higher than what it seemed at first.
Summary
If you make R 4 176 640 a year living in South Africa, you will be taxed R 1 700 160. That means that your net pay will be R 2 476 480 per year, or R 206 373 per month. Your average tax rate is 40.7% 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 2 746 383
34.2%
1
Canada
ZAR 2 362 754
43.4%
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.