South African Salary Tax Calculator? How Much Tax do I Pay?

South Africa salary tax calculator changes every year according to the tax rates introduced by South African Revenue Services. An employee working in the country can calculate these taxes themselves. So, if you want to know how much tax you have to pay, here is a quick guide for you.

How to Calculate PAYE on Salary: Step-by-Step Guide

SARS, or South African Revenue Service, uses the PAYE tax system to determine the tax on their annual salary. Here is how you can calculate it.

1. Calculate Annual Gross Income

The first step to calculating the taxes on salary is estimating the annual gross income, which is determined by the fixed and variable salaries an employee receives throughout the year.

  • The fixed salary is what your employer has committed to pay each month. You can figure it out by multiplying the monthly salary by 12.
  • The variable salary includes the extras like bonuses, increments, and incentives from the company. The formula of this salary is the sum of monthly remunerations/ number of months in which you have received remunerations multiplied by 12.

2. Regular Deductions

The next most important thing is to evaluate the regular deductions like provident funds, which are estimated to be around 27.5% of a yearly salary. The formula for determining these deductions is (the sum of provident funds, pensions, RAFs, etc) multiplied by 12.

3. Monthly Travel Allowances

Around 90% of employees in SA also have travel deductions from their salary on a monthly basis, inclusive of 20% of the business trips, 80% of routine conveyance, and other miscellaneous charges. The formula for calculating this value is monthly travel allowance multiplied by 12. If the value is less than 80%, the formula becomes monthly travel allowance multiplied by 12 divided by 80%.

4. SARS Deductions and Rebates

Next, count the SARS deductions and tax thresholds. You can find them from the below-mentioned statistics based on the year.

5. Note Down the PAYE Statutory Rates

Similarly, check out the taxable salary brackets from the information provided below.

6. Deduct Rebates from Tax Payables

Once you have the total payables all calculated, subtract total rebates from it and divide it by 12.

Taxable Salaries Breakdown Based on Years

Let us discuss the range of taxable salaries across the years.

2024 Taxable Salaries

The 2024 taxable salaries were applied from March 2023 to February 2024. Here is a breakdown of the changes made from last year.

  • For every 1 to R237100 salary amount, there is an 18% tax rate.
  • For every R237,101 to R370,500, there is a 26% tax rate + R42,678.
  • There is a 31% tax rate + R77,362 for every salary between R370,501 and R512,800.
  • There is around 36% tax rate + R121,475 for every salary amount between R512,801 and R673,000.
  • For every salary amount between R673,001 and R857,900, there is a 39% tax rate + R179,147.
  • For every salary amount between R857,901 and R1,817,00, there is a 41% tax rate + R251,258.
  • For every salary amount above R1,817,001, there is a 45% tax rate + R644,489.
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2023 Taxable Salaries

The 2023 taxable salaries were the tax amounts applied from March 2022 to February 2023. Here is a breakdown of the changes from the previous year.

  • For every salary amount between R1 and R226,000, there is an 18% tax rate.
  • For every salary amount between R226,001 and R353,100, there is a 26% tax rate + R40,680.
  • For every salary amount between R353,101 and R448,700, there is a 31% tax rate + R73,726.
  • For every salary amount between R488,701 and R641,400, there is a 36% tax rate + R115,762.
  • For every salary amount between R641,401 and R817,600, there is a 39% tax rate + R170,734.
  • For every salary amount between R817,601 and R1,731,600, there is a 41% tax rate + R239,452.
  • For every salary amount above R1,731,601, there is a 45% tax rate + R614,192.

2022 Taxable Salaries

The 2023 salary taxes were applied from March 2021 to February 2022. Here is everything that was changed from the previous year.

  • There is around 18% tax rate for every salary amount between R1 and R216,200.
  • There is around 26% tax rate + R38,916 for every salary amount between R216,201 and R337,800.
  • There is around 31% tax rate + R70,532 for every salary amount between R337,801 and R467,500.
  • There is around 36% tax rate + R110,739 for every salary amount between R467,501 and R613,600.
  • There is around 39% tax rate + R163,335 for every salary amount between R613,601 and R782,200.
  • There is around 41% tax rate + R229,089 for every salary amount between R782,201 and R1,656,600.
  • There is around a 45% tax rate + R587,593 for every salary amount above R1,656,601.

2021 Taxable Salaries

Here are some changes made in the taxable salaries applied from March 2020 to February 2021, as compared to those in the previous year.

  • For every salary amount between R1 and R205,900, there is an 18% tax rate.
  • For every salary amount between R205,901 and R321,600, there is a 26% tax rate + R37,062.
  • For every salary amount between R321,601 and R445,100, there is a 31% tax rate + R67,144
  • For every salary amount between R445,101 and R584,200, there is a 36% tax rate + R105,429.
  • For every salary amount between R584,201 and R744,800, there is a 39% tax rate + R155,505.
  • For every salary amount between R744,801 and R1,577,300, there is a 41% tax rate + R218,139.
  • For every salary amount above R1,577,301, there is a 45% tax rate + R559,464.

2020 Taxable Salaries

2021 taxable salaries implied some changes from the previous years. These were expected to be added between March 2020 and February 2021.

  • There is around 18% tax rate for every salary amount between R1 and R195,850.
  • There is around 26% tax rate + R35,253 for every salary amount between R195,850 and R305,850.
  • There is around 31% tax rate + R63,853 for every salary amount between R305,851 and R423,300.
  • There is around 36% tax rate + R100,263 for every salary amount between R423,301 and R555,600.
  • There is around 39% tax rate + R147,891 for every salary amount between R555,601 and R708,310.
  • There is around 41% tax rate + R207,448 for every salary amount between R708,311 and R1,500,000.
  • There is around 45% tax rate + R532,041 for every salary amount above R1,500,001.
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2019 Taxable Salaries

The 2019 taxable salaries were applied between March 2018 and February 2019. Here are some changes made from the previous year.

  • For every salary amount between R1 and R195,850, there is an 18% tax rate.
  • For every salary amount between R195,851 and R305,850, there is a 26% tax rate + R35,253.
  • For every salary amount between R305,851 and R423,300, there is a 31% tax rate + R63,853
  • For every salary amount between R423,301 and R555,600, there is a 36% tax rate + R100,263.
  • For every salary amount between R555,601 and R708,310, there is a 39% tax rate + R147,891.
  • For every salary amount between R708,311 and R1,500,000, there is a 41% tax rate + R207,448.
  • For every salary amount above R1,500,001, there is a 45% tax rate + R532,041.

2018 Taxable Salaries

In comparison with 2017, 2018 salary tax rates had some adjustments. Let us check them out in detail.

  • There is around 18% tax rate for every salary amount between R1 and R189,880.
  • There is around 26% tax rate + R34,178 for every salary amount between R189,881 and R296,540.
  • There is around 31% tax rate + R61,910 for every salary amount between R296,541 and R410,460.
  • There is around 36% tax rate + R97,225 for every salary amount between R410,461 and R555,600.
  • There is around 39% tax rate + R149,475 for every salary amount between R555,601 and R708,310.
  • There is around 41% tax rate + R209,032 for every salary amount between R708,311 and R1,500,000.
  • There is around 45% tax rate + R533,625 for every salary amount above R1,500,001.

FAQs

How much is tax on salary in South Africa?

Well, the tax depends on the salary brackets. For the entry-level salary scale up to R237,100, the taxes are around 18%.

How can you calculate tax on salary?

To calculate the taxes, you need to calculate and add the remunerations and taxes on the annual salary and multiply it by 12.

Does the tax on salary change every year?

Yes, each year, SARS introduces new taxable salaries and rates, which are then applied across the country.

Final Thoughts

Finally, calculating the taxes on annual salary is not as challenging as it seems. All you need to do is add the salaries and their tax deductions and multiply it by 12. I hope this guide has helped you with this.

Article Modified on October 28, 2023. The data in this article is written and collected by multiple authors. Learn how we research on About Us.