How this calculator works
South Africa taxes individuals on a sliding scale: the more you earn, the higher the rate on each extra rand. The calculator follows the same steps SARS uses.
- Add up your income for the year. Your monthly salary is multiplied by 12, then your bonus and any other taxable income are added.
- Deduct retirement contributions. Contributions to a pension, provident fund or retirement annuity are deductible up to 27.5% of your income, with an annual cap (R430 000 for 2027).
- Apply the SARS tax table to your taxable income.
- Subtract the rebates. Everyone gets the primary rebate. People aged 65 and older also get the secondary rebate, and people aged 75 and older the tertiary rebate.
- Subtract medical scheme fees tax credits if you pay for medical aid.
What is left is your income tax for the year. Monthly PAYE is the tax on your regular salary divided by 12; the extra tax on a bonus is normally deducted in the month the bonus is paid.
2027 tax tables (1 March 2026 – 28 February 2027)
| Taxable income | Tax |
|---|---|
| R0 – 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 |
Rebates for 2027: primary R17 820 · secondary (65+) R9 765 · tertiary (75+) R3 249.
The formula
Taxable income = salary × 12 + bonus + other income − retirement deduction Tax = bracket base + bracket rate × (taxable income − bracket start) − rebates − medical tax credits (never below zero) Monthly take-home = monthly salary − PAYE − UIF − retirement contributions
What this calculator does not include
To keep it simple and accurate for most employees, it leaves out the additional medical expenses tax credit (section 6B), travel allowances, capital gains, and exempt income such as the interest exemption. If these apply to you, the figure here is a starting point — your final assessment from SARS will include them.
Worked examples
R30 000 a month, under 65, no medical aid
R30 000 a month is R360 000 a year, which falls in the 26% bracket. Tax per the table is R73 992, less the primary rebate of R17 820, leaves R56 172 for the year — R4 681 a month.
Monthly payslip
- Gross salary
- R30 000.00
- PAYE
- −R4 681.00
- UIF (1%)
- −R177.12
- Take-home pay
- R25 141.88
R55 000 a month with medical aid for a family of three and a retirement annuity
The R3 000 a month retirement contribution reduces taxable income by R36 000 a year, and the medical tax credits for three people reduce the tax itself by R12 072 a year.
Monthly payslip
- Gross salary
- R55 000.00
- PAYE
- −R10 789.58
- UIF (1%)
- −R177.12
- Retirement contributions
- −R3 000.00
- Take-home pay
- R41 033.30
Pensioner aged 68 earning R20 000 a month
People aged 65 and older get the secondary rebate on top of the primary rebate, which raises their tax-free threshold to R153 250 a year.
Monthly payslip
- Gross salary
- R20 000.00
- PAYE
- −R1 301.25
- Take-home pay
- R18 698.75
Frequently asked questions
When does the 2027 tax year start and end?
SARS names a tax year after the year in which it ends. The 2027 tax year runs from 1 March 2026 to 28 February 2027.
What is the tax-free threshold for 2027?
You pay no income tax if your taxable income is below R99 000 a year (under 65), R153 250 (65 to 74) or R171 300 (75 and older). These thresholds are where the rebates cancel out the tax in the first bracket.
What is the difference between my marginal and effective tax rate?
Your marginal rate is the rate on your next rand of income — the bracket you are in. Your effective rate is your total tax divided by your total income. Because lower brackets and rebates apply first, your effective rate is always lower than your marginal rate.
Why is my PAYE slightly different from this calculator?
Employers calculate PAYE each month on the exact amounts paid, including allowances, fringe benefits and how the payroll averages bonuses. Small differences of a few rand are normal. Your final tax for the year is settled when you file your return.
How much do retirement contributions save me in tax?
Contributions to a pension fund, provident fund or retirement annuity are deductible up to 27.5% of your income, capped at R430 000 a year from the 2027 tax year. Each rand you contribute within the limit saves tax at your marginal rate.
How do medical aid tax credits work?
For the 2027 tax year you receive a credit of R376 a month for yourself, R376 for your first dependant and R254 for each additional dependant. The credit reduces your tax directly; it cannot create a refund on its own.