Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 3 401
PAYE (Pay As You Earn)
- R 1 443
UIF (Unemployment Insurance Fund)
- R 1.02
Total tax
- R 1 444
Net pay
* R 1 957
Marginal tax rate
45.0%
Average tax rate
42.5%
57.5%
Net pay
42.5%
Total tax
Total tax
Net pay
The Taxberg
R 1 957
Net pay
R 35.03
Tax the employer pays
R 1 444
Tax you pay
Total tax paid
R 1 479
Did you know your employer also pays tax on your salary? It costs the employer R 35.03 to pay you R 3 401. In other words, every time you spend R 10 of your hard-earned money, R 4.35 goes to the government.
Real tax rate
43.1%
So, with you and the employer both paying tax, what used to be a 42.5% tax rate now rises to 43.1%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make R 7 074 080 a year living in South Africa, you will be taxed R 3 004 008. That means that your net pay will be R 4 070 072 per year, or R 339 173 per month. Your average tax rate is 42.5% 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
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.