The primary rebate is represented as an allowance
The South Africa model represents a tax rebate through a deduction from the taxable base. Those mechanisms are not identical across progressive bands, so this is a material simplification rather than a complete PAYE calculation.
UIF is shown separately using the stored rate and cap. Medical scheme credits, retirement-fund deductions and age-dependent differences are excluded. Check the relevant assessment year and personal circumstances against the linked SARS references.
Resident employment income for a full tax year, the standard personal allowance or deductions described below, national income tax and the common mandatory employee contributions. Optional regional tax is shown where the calculator offers a state, province or region control.
Worked example: R 360,000 step by step
This is the exact arithmetic the calculator runs for the default single resident employee. R 360,000 is an example input chosen to illustrate the schedule, not an official wage statistic (why).
- Gross salaryR 360,000
- Personal allowance / standard deduction−R 95,750
- Taxable incomeR 264,250
- R 245,100 taxed at 18.0%R 44,118
- R 19,150 taxed at 26.0%R 4,979
- Income tax after model adjustments−R 49,097
- Employee contributions−R 2,125
- Annual take-home payR 308,778
- Monthly take-home (÷ 12)R 25,731
Effective deduction rate: 14.2%. Marginal rate on the next unit of pay: 26.0%, so a R 1,000 raise adds about R 740 to annual take-home.
Effective vs marginal rate across salaries
The effective rate rises gradually because each band taxes only its own slice of income. The marginal rate shows what happens to the next pay rise. The top band starts at about R 1,974,350 gross.
2026/27 model income-tax bands
Bands apply to taxable income after the model allowance and deductions; credits and other adjustments are applied afterwards. Some systems are approximated, as explained above.
Take-home pay at common salaries in South Africa
Nine salary levels from part-time to senior pay, using the default assumptions. Use the calculator for any other amount, pay period or region.
| Gross / year | Income tax | Contributions | Net / year | Net / month | Effective | Marginal |
|---|---|---|---|---|---|---|
| R 110,000 | R 2,565 | R 1,100 | R 106,335 | R 8,861 | 3.3% | 19.0% |
| R 180,000 | R 15,165 | R 1,800 | R 163,035 | R 13,586 | 9.4% | 19.0% |
| R 270,000 | R 31,365 | R 2,125 | R 236,510 | R 19,709 | 12.4% | 18.0% |
| R 360,000 | R 49,097 | R 2,125 | R 308,778 | R 25,731 | 14.2% | 26.0% |
| R 450,000 | R 72,497 | R 2,125 | R 375,378 | R 31,281 | 16.6% | 26.0% |
| R 540,000 | R 98,955 | R 2,125 | R 438,920 | R 36,577 | 18.7% | 31.0% |
| R 720,000 | R 159,457 | R 2,125 | R 558,418 | R 46,535 | 22.4% | 36.0% |
| R 1,100,000 | R 307,856 | R 2,125 | R 790,019 | R 65,835 | 28.2% | 41.0% |
| R 1,800,000 | R 594,856 | R 2,125 | R 1,203,019 | R 100,252 | 33.2% | 41.0% |
Income tax includes any local or inhabitant tax the model applies by default. Monthly figures divide the annual result by 12 and can differ from payroll timing.
Employer cost and the total tax wedge
Employers in South Africa pay contributions of roughly 1.0% on top of gross salary in this model. That cost never appears on the payslip, but it matters when comparing total compensation or hiring locations.
| Gross salary | Employer contributions | Total employer cost | Employee take-home | Tax wedge |
|---|---|---|---|---|
| R 270,000 | R 2,700 | R 272,700 | R 236,510 | 13.3% |
| R 360,000 | R 3,600 | R 363,600 | R 308,778 | 15.1% |
| R 720,000 | R 7,200 | R 727,200 | R 558,418 | 23.2% |
Tax wedge = (employee deductions + employer contributions) ÷ total employer cost. At R 360,000, the employer spends about R 118 for every R 100 the employee takes home.
How South Africa compares internationally
At a US$100,000 gross equivalent, the South Africa model leaves about US$67,038 after employee deductions, ranking 13 of 18 detailed models for take-home pay. Next highest: Ireland. Next lowest: Netherlands. See the full take-home pay rankings.
To test any other pair, add up to four countries in the comparison calculator and enter each job offer in its own currency.
Assumptions and exclusions
- Medical scheme credits and retirement-fund deductions are excluded.
- The primary rebate is represented as an allowance equivalent.
- The calculation assumes a full-year resident employee with regular salary income and no unusual credits, benefits in kind or other income.
- Exchange rates affect international comparison only; local tax is always calculated in ZAR.
South Africa take-home pay FAQs
How much is R 360,000 after tax in South Africa?
Under the default 2026/27 resident-employee model, R 360,000 gross leaves R 308,778 a year, or about R 25,731 a month, after R 51,222 of income tax and employee contributions. That is an effective deduction rate of 14.2%.
At what salary does income tax start in South Africa?
In this model, income tax first becomes payable above roughly R 95,749 of gross salary. Employee contributions can start at a different level.
When does the top rate apply in South Africa?
The top income-tax band of 45.0% starts at about R 1,974,350 of gross salary in this model. Only income above that point is taxed at the top rate.
What is the highest marginal rate an employee faces?
The highest combined marginal deduction rate in this model is 45.0%, reached around R 1,975,337 gross. It reflects the top income-tax band plus any uncapped employee contributions.
How much does an employer pay on top of salary?
The model adds employer contributions of about 1.0% of gross pay. On R 360,000, total employer cost is about R 363,600, and the combined tax wedge (employee and employer charges as a share of employer cost) is 15.1%.
Where the model comes from
The references below cover the tax system represented by this model. Check the exclusions above when comparing it with an official calculation. The page, worked examples, comparison results and ranking values all call the same calculation code. The model date identifies the stored dataset; it is not an authority guarantee.
South African Revenue ServiceReference used for this model ↗Model data dated August 2026. If a rule has changed or a linked authority page no longer supports a stored value, please send a correction with the exact scenario and source.