Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 299 642
PAYE (Pay As You Earn)
- R 127 278
UIF (Unemployment Insurance Fund)
- R 88.56
Total tax
- R 127 367
Net pay
* R 172 275
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 172 275
Net pay
R 3 085
Tax the employer pays
R 127 367
Tax you pay
Total tax paid
R 130 452
Did you know your employer also pays tax on your salary? It costs the employer R 3 085 to pay you R 299 642. 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 7 191 408 a year living in South Africa, you will be taxed R 3 056 806. That means that your net pay will be R 4 134 602 per year, or R 344 550 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
North America
Country 
Net pay
Average tax
Rank
USA
ZAR 4 409 958
38.7%
1
Canada
ZAR 3 763 728
47.7%
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.