PAYE Calculator South Africa 2026
Calculate your Pay-As-You-Earn tax based on SARS tax brackets
This calculator uses 2025/2026 SARS PAYE tax brackets. For official tax advice, consult SARS or a registered tax practitioner.
PAYE is not a flat rate — it is a bracket calculation with a rebate
Every PAYE calculation has three steps: annualise the taxable income, run it through the brackets to get tax before rebate, then subtract the rebate. Monthly PAYE is that annual figure divided by 12. Getting any one of those steps wrong is how a payslip ends up R400 out.
The 2027 tax year — brackets and rebates
| Taxable income (annual) | Rate of tax |
|---|---|
| 1 – 245 100 | 18% of taxable income |
| 245 101 – 383 100 | R44 118 + 26% of taxable income above R245 100 |
| 383 101 – 530 200 | R79 998 + 31% of taxable income above R383 100 |
| 530 201 – 695 800 | R125 599 + 36% of taxable income above R530 200 |
| 695 801 – 887 000 | R185 215 + 39% of taxable income above R695 800 |
| 887 001 – 1 878 600 | R259 783 + 41% of taxable income above R887 000 |
| 1 878 601 and above | R666 339 + 45% of taxable income above R1 878 600 |
| Rebate | 2027 tax year |
|---|---|
| Primary (everyone) | R17 820 |
| Secondary (65 and older) | R9 765 |
| Tertiary (75 and older) | R3 249 |
| Threshold, under 65 | R99 000 |
| Threshold, 65–74 | R153 250 |
| Threshold, 75 and over | R171 300 |
Worked example — R40 000 a month
Gross R40 000, under 65
- Annual taxable income: R480 000
- Falls in the R383 101 – R530 200 bracket
- Tax before rebate: R79 998 + 31% of (R480 000 − R383 100) = R79 998 + R30 049 = R110 047
- Less primary rebate R17 820 = R92 227 a year
- PAYE per month: R7 685,58
- If a pension fund receives 7,5% (R3 000 a month, R36 000 a year), taxable income drops to R444 000 and PAYE falls to about R6 754 — the R36 000 contribution costs you R33 000 in cash.
The bracket creep problem
Brackets and rebates are adjusted in the Budget, but rarely by full inflation. When your salary rises 4% and the brackets rise 3%, you move into a higher marginal rate on income that has not actually grown in real terms — and PAYE takes a larger share. That is why a small raise can produce a disappointing take-home increase. Running the new figure through this calculator before you accept an offer tells you what the raise is actually worth.
Where PAYE goes wrong on a real payslip
- Two employers in one year — each applies the full rebate, so you are under-deducted and owe SARS at assessment. Declare the second income.
- A bonus — annualised in the month it is paid, so the deduction looks brutal; it corrects itself over the year if the payroll system re-annualises.
- Retirement fund contributions above R350 000 a year — the deduction is capped, and the excess rolls over to future years rather than disappearing.
- Working from home — a home-office claim needs a dedicated room, a floor-plan calculation and a logbook of hours; it is not a flat percentage of your rent.
Provisional tax is a different animal
If you earn commission, rent, freelance income or investment income above the threshold, PAYE is not the whole story — you file a provisional return in August and February. Use the freelance tax calculator to estimate that liability; do not assume your payslip deduction covers it.
Frequently Asked Questions About PAYE
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How the PAYE calculator works
PAYE is not a flat percentage. SARS applies a sliding scale: each band charges a fixed amount on everything below it, plus a percentage of the amount inside the band.
Take taxable income of R300 000 a year. That falls in the second band, so the tax is R44 118 (the tax on the first R245 100) plus 26% of the R54 900 above it = R58 392, less the primary rebate of R17 820 = R40 572 for the year.
That is why the effective rate is far below the marginal rate: the higher percentage applies only to the slice above the band, never to the whole income.
What changes the answer in South Africa
The 2026/27 brackets start at 18% up to R245 100 and end at 45% above R1 878 600. The primary rebate is R17 820, so a person under 65 pays no income tax below R99 000 a year. Secondary and tertiary rebates of R9 765 and R3 249 apply from 65 and 75. PAYE is a payment on account — the annual assessment is what finally decides the liability.
Common questions about the PAYE calculator
What is the difference between marginal and effective tax rate?
Marginal is the rate on your next rand; effective is total tax divided by total income. At R300 000 the marginal rate is 26% but the effective rate is well under half that.
Does PAYE apply to overtime and bonuses?
Yes. All remuneration is included, and the deduction in that month is calculated on the annualised figure, so a large once-off payment can push you into a higher band temporarily.
Can I get a PAYE refund?
If too much was deducted — for example because you only worked part of the year, or contributed to a retirement fund — the annual assessment refunds the difference.