Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 18 180
PAYE (Pay As You Earn)
- R 5 296
UIF (Unemployment Insurance Fund)
- R 40.87
Total tax
- R 5 337
Net pay
* R 12 843
Marginal tax rate
41.0%
Average tax rate
29.4%
70.6%
Net pay
29.4%
Total tax
Total tax
Net pay
The Taxberg
R 12 843
Net pay
R 223
Tax the employer pays
R 5 337
Tax you pay
Total tax paid
R 5 560
Did you know your employer also pays tax on your salary? It costs the employer R 223 to pay you R 18 180. In other words, every time you spend R 10 of your hard-earned money, R 3.06 goes to the government.
Real tax rate
30.2%
So, with you and the employer both paying tax, what used to be a 29.4% tax rate now rises to 30.2%, meaning your real tax rate is actually 0.8% higher than what it seemed at first.
Summary
If you make R 945 360 a year living in South Africa, you will be taxed R 277 534. That means that your net pay will be R 667 826 per year, or R 55 652 per month. Your average tax rate is 29.4% and your marginal tax rate is 41.0%. 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 41, hence, your net pay will only increase by R 59.
Bonus Example
A R 1 000 bonus will generate an extra R 590 of net incomes. A R 5 000 bonus will generate an extra R 2 950 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.