Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
R 164 928
PAYE (Pay As You Earn)
- R 13 262
UIF (Unemployment Insurance Fund)
- R 1 649
Total tax
- R 14 911
Net pay
* R 150 017
Marginal tax rate
19.0%
Average tax rate
9.0%
91.0%
Net pay
9.0%
Total tax
Total tax
Net pay
The Taxberg
R 150 017
Net pay
R 3 299
Tax the employer pays
R 14 911
Tax you pay
Total tax paid
R 18 210
Did you know your employer also pays tax on your salary? It costs the employer R 3 299 to pay you R 164 928. In other words, every time you spend R 10 of your hard-earned money, R 1.10 goes to the government.
Real tax rate
10.8%
So, with you and the employer both paying tax, what used to be a 9% tax rate now rises to 10.8%, meaning your real tax rate is actually 1.8% higher than what it seemed at first.
Summary
If you make R 164 928 a year living in South Africa, you will be taxed R 14 911. That means that your net pay will be R 150 017 per year, or R 12 501 per month. Your average tax rate is 9.0% and your marginal tax rate is 19.0%. 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 19, hence, your net pay will only increase by R 81.
Bonus Example
A R 1 000 bonus will generate an extra R 810 of net incomes. A R 5 000 bonus will generate an extra R 4 050 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.