Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 53 714
PAYE (Pay As You Earn)
- R 12 974
UIF (Unemployment Insurance Fund)
- R 177
Total tax
- R 13 151
Net pay
* R 40 563
Marginal tax rate
38.7%
Average tax rate
24.5%
75.5%
Net pay
24.5%
Total tax
Total tax
Net pay
The Taxberg
R 40 563
Net pay
R 714
Tax the employer pays
R 13 151
Tax you pay
Total tax paid
R 13 865
Did you know your employer also pays tax on your salary? It costs the employer R 714 to pay you R 53 714. In other words, every time you spend R 10 of your hard-earned money, R 2.58 goes to the government.
Real tax rate
25.5%
So, with you and the employer both paying tax, what used to be a 24.5% tax rate now rises to 25.5%, meaning your real tax rate is actually 1% higher than what it seemed at first.
Summary
If you make R 644 568 a year living in South Africa, you will be taxed R 157 808. That means that your net pay will be R 486 760 per year, or R 40 563 per month. Your average tax rate is 24.5% and your marginal tax rate is 38.7%. 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 38.72, hence, your net pay will only increase by R 61.28.
Bonus Example
A R 1 000 bonus will generate an extra R 613 of net incomes. A R 5 000 bonus will generate an extra R 3 064 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.