1 · The tax for the year
| Step | A year (R) | A month (R) |
|---|
Take home each month R 0.00 Tax a month R 0.00 UIF a month R 0.00 Tax on what you earn 0.00% On your next rand 0%
Your numbers
Only the first one is compulsory. Everything else is a deduction or a credit that pulls the tax down, and each is worth filling in if it applies to you — a pension contribution and a medical aid together can move the figure by hundreds of rands a month.
Where the number comes from
Two steps, in this order. First SARS works out the tax for the whole year on what is left after your retirement contribution. Then your employer takes that, plus UIF, off your pay. Nothing is hidden in a black box — every line below is a figure you can check against the SARS table further down.
2 · What lands in your account
| Step | A year (R) | A month (R) |
|---|
Bracket by bracket
The single most misunderstood thing about income tax: a bracket applies to the slice of income inside it, never to all of it. Crossing into 26% does not make your whole salary taxed at 26% — it taxes the rands above the line at 26% and leaves everything below it exactly where it was. That is why the row you are in is almost never the rate you actually pay. Figures here are to the nearest rand — the ladders above keep the cents.
Narrow screen — the base amount column is folded away to keep the table on the page.
| Taxable income | Rate | Base (R) | Your income in it (R) | Tax from it (R) |
|---|---|---|---|---|
| Total |
Rebates
- Primary (everyone)
- R17 820
- Secondary (65+)
- R9 765
- Tertiary (75+)
- R3 249
Subtracted from your tax, not your income, and they stack with age. You cannot go below zero, so a rebate is never paid out.
Tax thresholds
- Under 65
- R99 000
- 65 to 74
- R153 250
- 75 or older
- R171 300
Earn under this for the year and the rebate wipes out the whole bill. It is not an exemption — it is just the rebate divided by 18%.
Medical credits, a month
- Main member
- R376
- First dependant
- R376
- Each one after
- R254
A flat amount off your tax for belonging to a medical scheme, worth exactly the same to every member whatever they earn.
The other two
- Retirement
- 27.5%
- Capped at
- R430 000
- UIF
- 1% of pay
- UIF, at most
- R177.12
For this salary-only estimate, the retirement deduction is the lower of the contribution, 27.5% of remuneration and R430 000. UIF stops counting above R17 712 of pay a month.
What this leaves out
This is the plain-salary version, which is the right version for most people in their first jobs. If any of these apply to you, the real figure will differ — sometimes by a lot — and they are worth a registered tax practitioner rather than a web page.
- Travel and other allowances. A travel allowance is taxed on part of its value up front and settled against a logbook when you file. A cellphone or subsistence allowance has its own rules.
- Medical expenses out of your own pocket. The additional medical expenses tax credit under section 6B can add to your refund, but only once you file, and only above a threshold.
- A part-year of work. Starting a job in September means your income for the tax year is roughly half your annual salary, so the tax on it is much less than half. This tool assumes a full year.
- Anything that is not a salary. Freelance income, rent, interest above the exemption, dividends, a second job, capital gains and a company car all change the answer.
- Month-by-month PAYE. Employers work tax out on each month as it comes, so a bonus month or a mid-year raise looks different on the payslip and evens out over the year.
- The tax-free savings allowance and donations. Neither reduces PAYE, but both change the wider picture of what your money actually costs you.
Asked often
The same six questions, every year, from everyone getting their first proper payslip.
At what salary do you start paying income tax in South Africa?
For the 2027 tax year the threshold is R99 000 a year — about R8 250 a month — if you are under 65. That is not a special exemption: it is simply the point where the R17 820 primary rebate stops covering the whole bill. The threshold rises to R153 250 at 65 and R171 300 at 75. UIF is still deducted below the threshold, because UIF is not tax.
How much tax do I pay on R20 000 a month?
With no pension, no medical aid and no other income, taxable income for the year is R240 000. At 18% that is R43 200, less the R17 820 primary rebate, so PAYE is R25 380 a year or R2 115 a month. After R177.12 of UIF you take home about R17 708 a month. Add a pension contribution or a medical aid and the tax figure comes down — type your own numbers in above and watch it move.
Is a bonus or 13th cheque taxed at a higher rate?
No. A bonus is added to your income for the year and taxed at the same rates as everything else. It feels punitive for two reasons: the whole bonus sits on top of your salary, so all of it is taxed at your top marginal rate rather than starting again at 18%, and your employer deducts that tax in one month. Nothing extra is charged for it being a bonus.
Does a pension or retirement annuity reduce my income tax?
Yes. Pension, provident and retirement-annuity contributions are combined under section 11F. For the 2027 tax year the deduction is subject to a 27.5% test based on the higher of statutory remuneration and taxable income, a R430 000 annual cap, the amount contributed and a separate taxable-income ceiling. In this salary-and-bonus calculator it simplifies to the lower of your contribution, 27.5% of remuneration and R430 000.
How do medical aid tax credits work?
The medical scheme fees tax credit comes off your tax bill, not your income, so it is worth the same to everyone regardless of what they earn. For the 2027 tax year it is R376 a month for the main member, another R376 for the first dependant and R254 a month for each dependant after that. It cannot take your tax below zero, so it is never refunded as cash.
Why is the tax on my payslip different from this calculator?
The usual suspects are a travel or cellphone allowance, commission, overtime that varies month to month, a mid-year start date, a second job, or medical expenses paid out of your own pocket that only come back when you file. Employers also work PAYE out month by month rather than as one yearly figure, which is what makes bonus months and pay rises look strange. This tool does the plain, whole-year version.
How this income-tax estimate works
The calculator turns a regular salary and one annual bonus into a full-year estimate, applies the 2027 SARS tables, then shows an average month. The workings above stay visible so you can trace each amount instead of relying on a single take-home number.
Gross remuneration and taxable income
Gross remuneration is what you earn before deductions. In this simplified model it is 12 months of salary, or the annual salary you enter, plus the once-a-year bonus. Actual remuneration can also include taxable allowances and fringe benefits. Taxable income is the amount read against the tax table; here it is gross remuneration less the retirement-fund deduction allowed by section 11F.
PAYE, brackets and rebates
PAYE is not a separate tax. It is employee's tax that an employer withholds towards your annual income-tax bill. The rates are progressive: moving into a higher bracket changes the rate only on the slice above that bracket's starting point.
| Taxable income | Tax before rebates |
|---|---|
| R1–R245 100 | 18% of taxable income |
| R245 101–R383 100 | R44 118 + 26% above R245 100 |
| R383 101–R530 200 | R79 998 + 31% above R383 100 |
| R530 201–R695 800 | R125 599 + 36% above R530 200 |
| R695 801–R887 000 | R185 215 + 39% above R695 800 |
| R887 001–R1 878 600 | R259 783 + 41% above R887 000 |
| R1 878 601 and above | R666 339 + 45% above R1 878 600 |
The calculator then subtracts the rebates available for your age: the R17 820 primary rebate for everyone, an additional R9 765 from age 65, and a further R3 249 from age 75. These rebates are cumulative and cannot create a refund by themselves. They produce annual tax thresholds of R99 000, R153 250 and R171 300 respectively. For this calculation, age means your age on 28 February 2027, the final day of the year of assessment.
Medical scheme fees tax credits
The section 6A credit reduces tax rather than taxable income. For each month of the 2027 tax year it is R376 for the taxpayer, R376 for the first dependant and R254 for every additional dependant. This tool assumes the same membership for all 12 months and does not model the separate additional medical expenses tax credit.
Retirement-fund contributions
Pension, provident and retirement-annuity contributions are combined for section 11F. For 2026/27, the deduction is subject to a 27.5% test based on the higher of statutory remuneration and taxable income, an annual R430 000 cap, the amount actually contributed and a separate taxable-income ceiling. With only salary and a bonus in this calculator, that reduces to the lower of your contribution, 27.5% of remuneration and R430 000.
The input is for your own contribution. Employer contributions, their possible fringe-benefit treatment, excess contributions carried forward and withdrawals under the two-pot system are not modelled.
UIF
For an ordinary employee, the employee and employer generally each contribute 1% of UIF remuneration. The monthly remuneration ceiling is R17 712, so the most this calculator subtracts from the employee is R177.12 a month. The employer's separate share is not taken from take-home pay. The tool applies UIF to regular salary; if salary is below the ceiling, a bonus can change the real deduction in the bonus month.
Marginal rate, effective rate and net estimate
The marginal rate is the bracket rate on the next taxable rand once the rebates have been used. The effective rate shown here is annual PAYE divided by gross remuneration, so it excludes UIF. The net estimate is gross remuneration less PAYE, the employee's UIF and the full retirement contribution entered. When a bonus is included, the monthly result is a 12-month average, not the cash for every individual payslip.
What the estimate cannot settle
It assumes one salary for a full tax year. It does not calculate part-year employment, variable commission or overtime, travel allowances, taxable fringe benefits, a second job, investment or rental income, capital gains, provisional tax, additional medical expenses, employer payroll rounding or other payslip deductions such as a medical-scheme premium. Use the result as a planning estimate, not a tax return or SARS assessment.
Official sources
Figures and rules were checked against the SARS individual tax rates, SARS medical credits guidance, SARS 2027 employer guide, SARS UIF ceiling notice and the National Treasury 2026 tax guide (PDF).
Last verified: .