Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 14 485
PAYE (Pay As You Earn)
- R 3 806
UIF (Unemployment Insurance Fund)
- R 40.87
Total tax
- R 3 847
Net pay
* R 10 638
Marginal tax rate
39.0%
Average tax rate
26.6%
73.4%
Net pay
26.6%
Total tax
Total tax
Net pay
The Taxberg
R 10 638
Net pay
R 186
Tax the employer pays
R 3 847
Tax you pay
Total tax paid
R 4 033
Did you know your employer also pays tax on your salary? It costs the employer R 186 to pay you R 14 485. In other words, every time you spend R 10 of your hard-earned money, R 2.78 goes to the government.
Real tax rate
27.5%
So, with you and the employer both paying tax, what used to be a 26.6% tax rate now rises to 27.5%, meaning your real tax rate is actually 0.9% higher than what it seemed at first.
Summary
If you make R 753 220 a year living in South Africa, you will be taxed R 200 044. That means that your net pay will be R 553 176 per year, or R 46 098 per month. Your average tax rate is 26.6% and your marginal tax rate is 39.0%. 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 39, hence, your net pay will only increase by R 61.
Bonus Example
A R 1 000 bonus will generate an extra R 610 of net incomes. A R 5 000 bonus will generate an extra R 3 050 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.