Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 35 440
PAYE (Pay As You Earn)
- R 12 459
UIF (Unemployment Insurance Fund)
- R 40.87
Total tax
- R 12 499
Net pay
* R 22 941
Marginal tax rate
45.0%
Average tax rate
35.3%
64.7%
Net pay
35.3%
Total tax
Total tax
Net pay
The Taxberg
R 22 941
Net pay
R 395
Tax the employer pays
R 12 499
Tax you pay
Total tax paid
R 12 895
Did you know your employer also pays tax on your salary? It costs the employer R 395 to pay you R 35 440. In other words, every time you spend R 10 of your hard-earned money, R 3.64 goes to the government.
Real tax rate
36.0%
So, with you and the employer both paying tax, what used to be a 35.3% tax rate now rises to 36.0%, meaning your real tax rate is actually 0.7% higher than what it seemed at first.
Summary
If you make R 1 842 880 a year living in South Africa, you will be taxed R 649 968. That means that your net pay will be R 1 192 912 per year, or R 99 409 per month. Your average tax rate is 35.3% 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 1 320 945
28.3%
1
Canada
ZAR 1 216 853
34.0%
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.