PAYE & Income Tax Calculator South Africa (2024 / 2025)
Calculate PAYE and income tax in South Africa for the 2024/2025 tax year and see how much SARS deducts from your salary, including your estimated take-home pay.
What Is PAYE Tax?
PAYE stands for Pay As You Earn. It is a tax system used by SARS where income tax is deducted directly from your salary by your employer before you are paid.
Instead of paying income tax once a year, PAYE spreads the tax burden across each pay period.
In simple terms:
- You earn a salary
- Your employer deducts PAYE
- The money is paid to SARS on your behalf
This system ensures most employees stay tax-compliant automatically.
How PAYE Works in South Africa
PAYE is calculated based on annual taxable income, even though deductions happen monthly or weekly.
SARS looks at:
- Your total annual salary
- Current tax brackets
- Rebates you qualify for
- Allowable deductions
Your employer uses SARS tax tables to estimate your yearly tax and then divides it across the year.
That’s why:
- A bonus can increase PAYE for that month
- A salary increase can move you into a higher tax bracket
- Medical aid or retirement contributions can reduce PAYE
PAYE Tax Brackets Explained
South Africa uses a progressive tax system, meaning higher income is taxed at higher rates but only on the portion that falls into each bracket.
Important points many people misunderstand:
- You do not pay the highest rate on your full salary
- Only income above a certain threshold is taxed at higher rates
- Tax rebates are applied after the tax calculation
This is why two people earning similar salaries can still have different PAYE deductions.
What Affects How Much PAYE You Pay?
PAYE is not a fixed amount. Several factors influence how much is deducted from your salary.
1. Gross Salary
Higher earnings result in higher PAYE, especially when moving into a new tax bracket.
2. Pay Frequency
Monthly, weekly, or bi-weekly salaries can slightly affect PAYE timing, though annual tax remains the same.
3. Age-Based Tax Rebates
SARS provides rebates based on age:
- Primary rebate (all taxpayers)
- Secondary rebate (65+)
- Tertiary rebate (75+)
These rebates reduce the final PAYE amount.
4. Medical Aid Tax Credits
If you belong to a registered medical aid scheme, you qualify for monthly tax credits that lower PAYE.
5. Retirement Contributions
Contributions to:
- Pension funds
- Provident funds
- Retirement annuities
can reduce taxable income, lowering PAYE legally.
PAYE Deductions You’ll See on a Payslip
A typical South African payslip includes several deductions. PAYE is often the largest.
Common deductions include:
- PAYE (Income Tax)
- UIF
- Medical Aid
- Pension or Provident Fund
- Voluntary deductions (loans, insurance, etc.)
It’s important not to confuse PAYE with other deductions only PAYE goes directly to SARS as income tax.
Salary After PAYE: What Is Take-Home Pay?
Your take-home pay is the amount you receive after all deductions, including PAYE.
Many employees focus only on gross salary when negotiating pay, but what truly matters is:
- Net salary after PAYE
- Consistency of deductions
- Whether deductions are optimised correctly
Understanding PAYE allows you to:
- Budget accurately
- Compare job offers properly
- Spot payroll errors early
PAYE for Different Types of Employees
Permanent Employees
PAYE is deducted monthly using standard SARS tables.
Contract Workers
Some contracts still fall under PAYE if the employer controls working hours and conditions.
Part-Time Employees
PAYE applies if income exceeds the tax threshold.
Freelancers on PAYE
If you are paid through payroll, PAYE may still be deducted even if you freelance elsewhere.
Each employment type has nuances that affect PAYE accuracy.
PAYE vs Provisional Tax
A common confusion is the difference between PAYE and provisional tax.
PAYE:
- Deducted by employer
- Paid monthly
- Common for employees
Provisional Tax:
- Paid directly to SARS
- Usually twice a year
- Applies to freelancers and business owners
Some individuals can fall into both categories depending on income sources.
Can You Get PAYE Back?
Yes if you overpay PAYE during the year, SARS may refund you after submitting your annual tax return.
Common reasons for refunds:
- Variable income
- Bonuses
- Incorrect deductions
- Updated tax credits
This is why accurate PAYE estimates matter throughout the year.
Frequently Asked Questions about the PAYE Tax Calculator South Africa
The PAYE tax calculator South Africa estimates how much Pay As You Earn (PAYE) tax is deducted from your salary based on current SARS tax brackets, rebates, and deductions.
PAYE is calculated using your estimated annual taxable income, SARS tax brackets, and applicable tax rebates. The annual tax amount is then divided across your pay periods.
No. PAYE refers only to income tax paid to SARS. UIF, medical aid, pension, and other deductions are calculated separately and shown individually on your payslip.
PAYE may change due to bonuses, overtime, salary increases, updated tax tables, or changes to your medical aid or retirement contributions.
Yes. If you overpay PAYE during the tax year, SARS may issue a refund after you submit your annual income tax return and receive your assessment.
Anyone earning above the SARS tax threshold and paid through an employer is generally required to pay PAYE tax.
Conclusion on PAYE Tax in South Africa
PAYE is not just a deduction it’s a system designed to keep taxpayers compliant while spreading tax payments across the year.
Understanding how PAYE works gives you:
- Better control over your income
- Fewer surprises on payday
- Confidence when reviewing payslips
- Stronger financial planning
When PAYE is calculated correctly, it becomes predictable, manageable, and transparent.