South African PAYE and income tax calculator
Work out your monthly PAYE, UIF and take-home pay, including medical aid credits, retirement contributions, travel allowance and what a bonus month actually looks like. It runs in your browser, so nothing you enter is sent to us.
- Tax year
- 2026/27
- Tax-free threshold
- R95 750
- UIF ceiling
- R17 712
1 March to end February
under 65 · R148 217 from 65 · R165 689 from 75
1% each from employee and employer, capped monthly
What lands in your account
PAYE is worked out on an annualised basis and divided back down, which is why a bonus is taxed harder in the month you receive it. Enter your details and open the extra options for medical aid, retirement and allowances.
Monthly payslip
Annual position
How your tax is built up
Only the income inside each band is taxed at that band's rate, a higher bracket never applies to your whole salary.
The month your bonus is paid
What this employee costs the employer
The rates behind the numbers
South Africa uses a sliding scale. Only the income falling inside each bracket is taxed at that bracket's rate, so moving into a higher bracket never taxes your whole salary at the higher rate.
Income tax brackets
| Taxable income | Rate of tax |
|---|---|
| R0 – R237 100 | 18% of the amount above R0 |
| R237 101 – R370 500 | R42 678 + 26% of the amount above R237 100 |
| R370 501 – R512 800 | R77 362 + 31% of the amount above R370 500 |
| R512 801 – R673 000 | R121 475 + 36% of the amount above R512 800 |
| R673 001 – R857 900 | R179 147 + 39% of the amount above R673 000 |
| R857 901 – R1 817 000 | R251 258 + 41% of the amount above R857 900 |
| R1 817 001 and above | R644 489 + 45% of the amount above R1 817 000 |
Rebates
- Primary (all ages)
- R17 235
- Secondary (65+)
- R9 444
- Tertiary (75+)
- R3 145
Tax thresholds
- Under 65
- R95 750
- 65 to 74
- R148 217
- 75 and older
- R165 689
Medical tax credits
- Main member
- R364/mo
- First dependant
- R364/mo
- Each additional
- R246/mo
Retirement fund contributions are deductible up to 27.5% of the greater of remuneration or taxable income, capped at R350 000 a year. Figures confirmed , verify against SARS: Rates of tax for individuals. The 2026/27 figures are carried forward pending confirmation against the published SARS tables.
PAYE is a deduction you hold in trust
Money withheld from an employee belongs to SARS from the moment it is deducted. Cash-flow pressure is not a defence, and penalties apply to the amount rather than the number of days late.
Register as an employer
PAYE, UIF and SDL registration with SARS before the first payroll. Employers below the SDL payroll threshold are exempt from the levy but still register for PAYE and UIF.
How we handle this →Deduct and pay over monthly
The EMP201 declaration and payment are due within 7 days after month end. Late payment attracts a penalty plus interest, charged on the amount not the delay.
How we handle this →Reconcile twice a year
The interim EMP501 covers March to August, the annual one covers the full tax year. Both must reconcile the EMP201s, the payments and the employee certificates.
How we handle this →Issue IRP5 certificates
Employees cannot file accurately without them, and a reconciliation that does not balance will hold them up. This is where payroll errors become visible.
How we handle this →PAYE questions
What employees and employers ask most. If your situation involves multiple employers, directors' remuneration or a lump sum, the answer usually changes. Ask us.
Ask about your payrollHow is PAYE calculated in South Africa?
Your annual taxable income is worked out, the sliding-scale tax tables are applied, then rebates and medical scheme fees tax credits are subtracted. The result is divided by the number of pay periods to give the monthly deduction. This is why a bonus month is taxed more heavily, it lifts the annualised figure.
Do I have to submit a tax return?
Not everyone does. If your income is below the tax threshold for your age you generally have no tax liability. Even above it, you may not need to file if you had a single employer, no other income and no deductions to claim, but auto-assessment and other factors affect this, so it is worth confirming rather than assuming.
What are the rebates and how do they work?
The primary rebate applies to everyone. A secondary rebate is added from age 65 and a tertiary rebate from 75. They are subtracted from the tax calculated on the tables, which is what creates the tax threshold below which no tax is payable.
How does the medical aid tax credit work?
The medical scheme fees tax credit is a fixed monthly amount per member and per dependant, subtracted from PAYE. It is not a percentage of contributions. Additional medical expenses relief is a separate calculation claimed on assessment, not through monthly PAYE.
Are retirement fund contributions deductible?
Yes, up to 27.5% of the greater of remuneration or taxable income, capped at R350,000 a year. Contributions above the cap are not lost. They roll forward and can reduce tax later or on retirement.
How is UIF calculated?
UIF is 1% from the employee and 1% from the employer, on remuneration up to a monthly ceiling. Earnings above the ceiling do not attract further UIF, which is why the deduction stops increasing at higher salaries.
What does an employee actually cost the employer?
Gross salary plus the employer’s 1% UIF and, where the payroll is large enough to be liable, 1% Skills Development Levy. Employers with an annual payroll below the exemption threshold do not pay SDL.
Why is my bonus taxed so heavily?
PAYE annualises your pay for the period. A bonus pushes that month’s annualised income into a higher bracket, so more tax is withheld in that month. It usually evens out over the year, and any over-deduction comes back on assessment.
Need payroll done properly? M&J can run it.
Monthly payroll, payslips, EMP201 submissions, EMP501 reconciliations and IRP5 certificates: calculated correctly and filed on time, so the reconciliation balances and your people are paid the right amount.
- PAYE, UIF, SDL and Compensation Fund handled together
- EMP201 monthly and EMP501 twice a year, on time
- Payslips and IRP5 certificates your staff can rely on
Prefer to talk? +27 87 078 2478
Ask about payroll
Tell us how many employees you have and what payroll looks like today. We will come back with what it would take to run it properly.
This calculator is an estimate, not a payslip. It applies the standard tax tables, rebates, medical scheme fees tax credits and the retirement deduction cap. It does not model additional medical expenses relief (claimed on assessment rather than through PAYE), lump sums, directors' deemed remuneration, multiple employers, foreign income or SARS tax directives. For an exact figure, and for the deduction your employer must actually make, speak to our payroll team.