Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 21 231
PAYE (Pay As You Earn)
- R 6 547
UIF (Unemployment Insurance Fund)
- R 40.87
Total tax
- R 6 588
Net pay
* R 14 643
Marginal tax rate
41.0%
Average tax rate
31.0%
69.0%
Net pay
31.0%
Total tax
Total tax
Net pay
The Taxberg
R 14 643
Net pay
R 253
Tax the employer pays
R 6 588
Tax you pay
Total tax paid
R 6 841
Did you know your employer also pays tax on your salary? It costs the employer R 253 to pay you R 21 231. In other words, every time you spend R 10 of your hard-earned money, R 3.22 goes to the government.
Real tax rate
31.8%
So, with you and the employer both paying tax, what used to be a 31% tax rate now rises to 31.8%, meaning your real tax rate is actually 0.8% higher than what it seemed at first.
Summary
If you make R 1 104 012 a year living in South Africa, you will be taxed R 342 581. That means that your net pay will be R 761 431 per year, or R 63 453 per month. Your average tax rate is 31.0% 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.
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.