South African PAYE Calculator: Work Out Your Monthly Tax

If you’re earning a salary in South Africa, you’ll notice deductions on your payslip marked as PAYE (Pay As You Earn). This is income tax collected by your employer on behalf of SARS.

Our South African PAYE Calculator helps you work out how much tax you should be paying each month.

What is PAYE?

PAYE (Pay-As-You-Earn) is the income tax system in South Africa where employers deduct tax from employees’ salaries before paying them.

  • Based on annual income brackets set by SARS.

  • Employers withhold the tax and pay it directly to SARS.

  • Ensures employees don’t have to make large once-off payments at year-end.

How PAYE is Calculated

PAYE depends on:

  • Gross monthly salary

  • Tax year brackets (progressive rates)

  • Tax rebates (based on age)

  • Allowances & deductions (like retirement fund contributions or medical aid credits)

Practical Example: PAYE in South Africa

Example:
Sipho earns R25,000 per month (R300,000 per year).

  1. Annual salary = R300,000

  2. According to SARS tax tables, the first R237,100 is taxed at 18%, the next portion at 26%.

  3. Less primary rebate (R17,235 for under 65).

  4. Final annual PAYE ≈ R39,000

  5. Monthly deduction = R3,250

👉 Sipho’s net pay after PAYE would be R21,750.

South African PAYE Calculator

Use the calculator below to see your monthly and annual tax deductions:

South African PAYE Calculator (2025)

Gross Income: R0.00

Tax Before Rebates: R0.00

Rebate: R0.00

PAYE (After Rebates): R0.00

UIF: R0.00

Net Salary: R0.00

Formula used:

Based on 2025 SARS tax brackets & rebates. UIF capped at R177.12 per month.

Why Use the PAYE Calculator?

  • Quickly estimate your monthly tax.

  • Plan your take-home pay and budget better.

  • Check if your employer is deducting correctly.

  • Understand how rebates and deductions affect you.

Who Should Use the PAYE Calculator?

  • Employees – to see their net salary after tax.

  • HR & Payroll Managers – to verify monthly calculations.

  • Job Seekers – to negotiate net salary offers.

  • Freelancers – to estimate PAYE if they are taxed as employees.

10 Frequently Asked Questions (FAQs)

1. What does PAYE stand for?

Pay-As-You-Earn, South Africa’s system for taxing employees.

2. Who pays PAYE in South Africa?

Employees earning above the tax threshold. Employers deduct and pay it to SARS.

3. What is the PAYE threshold?

For the 2025/26 tax year:

  • Under 65: R95,750 per year (about R7,980/month).

  • 65–74: R148,217 per year.

  • 75+: R165,689 per year.

4. How often is PAYE deducted?

Monthly, directly from your payslip.

5. Can PAYE be refunded?

Yes, if too much tax was deducted, SARS refunds the difference after your tax return.

6. What happens if my employer doesn’t pay SARS?

SARS will pursue the employer, but you should always check your IRP5.

7. What’s the difference between PAYE and Provisional Tax?

PAYE is for employees; provisional tax is for self-employed individuals or those with irregular income.

8. Do bonuses get taxed under PAYE?

Yes, bonuses are taxed at your marginal rate, often higher.

9. How can I reduce my PAYE?

By contributing to retirement annuities, medical aid, or claiming allowable deductions.

10. Does PAYE include UIF?

No. UIF is a separate 1% deduction.

Final Thoughts

PAYE ensures you pay income tax monthly instead of in one lump sum. Knowing how much will be deducted helps you manage your finances.

👉 Use our South African PAYE Calculator now to estimate your tax and take-home pay.