How to calculate tax from salary in South Africa
Start with annual taxable income, apply the SARS tax bracket, subtract your rebates, and divide by 12 to estimate monthly PAYE.
Historical example: 2025/26 tax year, 1 March 2025–28 February 2026. These are not presented as current-year rates. Use the SARS tables for the year your salary falls in.
1. Work out annual taxable income
For a fixed monthly salary with no bonus or other adjustments, multiply your monthly salary by 12. In this example, a 30-year-old earns R 30 000,00 a month, or R 360 000,00 a year. Gross salary and taxable income are not always the same: deductible retirement contributions, taxable benefits and bonuses can change the calculation.
2. Apply the tax bracket, then the rebate
South Africa uses progressive brackets: entering a higher bracket does not mean your entire income is taxed at that higher rate. For this example's 2025/26 bracket, SARS calculates R42,678 plus 26% of taxable income above R237,100. Then subtract the primary rebate of R 17 235,00.
The result is R 57 397,00 annual income tax, before medical tax credits or other adjustments. People aged 65 and older also qualify for a secondary rebate; those aged 75 and older qualify for a tertiary rebate.
3. Convert annual tax to monthly PAYE
Dividing the annual tax by 12 gives estimated monthly PAYE of R 4 783,08. PAYE is the income tax your employer withholds and pays to SARS. Actual payroll withholding can differ if your pay varies, you receive a bonus, or your employer applies other adjustments.
4. Deduct UIF and other payslip items
For an employee subject to UIF, the employee contribution is 1% of remuneration, subject to the applicable monthly ceiling. This example uses R 177,12. Your employer makes its own contribution; that employer contribution is not deducted from your salary.
| Gross salary | R 30 000,00 |
|---|---|
| PAYE deduction | R 4 783,08 |
| UIF deduction | R 177,12 |
| Estimated take-home | R 25 039,80 |
This take-home estimate excludes pension or retirement contributions, medical aid deductions and credits, garnishee orders and other payslip items. It is not a personalised tax assessment.
Calculate your own estimated PAYE and take-home pay →Common salary-tax questions
Is cost to company the same as gross salary?
No. Cost to company can include employer contributions and benefits that are not cash salary. Use your payslip's taxable remuneration and understand which deductions apply rather than treating the whole package as cash paid into your bank account.
Why does my payslip differ from a calculator?
A simple calculator cannot see your payroll history, bonus timing, allowances, retirement deductions or medical credits. Ask your payroll team for the taxable remuneration, PAYE calculation and deduction breakdown if the difference is unexpected.
Does a bonus get taxed separately?
A bonus forms part of taxable employment income. Employers may use a different withholding calculation for an annual payment, but your final income-tax liability depends on your total taxable income for the tax year.
Sources and scope
- SARS 2025/26 Budget Tax Guide — historical rates and rebates used in this example.
- SARS individual income-tax rates — select the applicable tax year.
- SARS Employer's Guide for the 2026 tax year — PAYE and UIF rules.
Prepared by Randwise. Calculator examples use the same functions as our salary calculator. For individual advice, consult SARS or a registered tax practitioner.