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South Africa Salary Calculator
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Take Home Salary Calculator - South Africa
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Understand what impacts your Take-Home Salary in South Africa
What is the Income Tax in South Africa?
In South Africa, income tax is levied on the taxable income of individuals. The income tax rates in South Africa are progressive, meaning that higher rates apply to higher income brackets. As of the 2022/2023 tax year, the income tax rates for individuals below the age of 65 are as follows:
- 18% for income up to ZAR 216,200
- 26% for income between ZAR 216,201 and ZAR 337,800
- 31% for income between ZAR 337,801 and ZAR 467,500
- 36% for income between ZAR 467,501 and ZAR 613,600
- 39% for income above ZAR 613,601
How is the income tax calculated in South Africa?
In South Africa, the income tax is calculated based on a progressive tax system. The calculation involves the following steps:
- Determine the Taxable Income: This includes all income earned by an individual, including employment income, rental income, business income, and other taxable earnings. Certain deductions, exemptions, and allowances may be applicable to arrive at the taxable income.
- Apply Tax Thresholds: The taxable income is subject to various tax thresholds. The first step is to determine if the individual is a resident or non-resident for tax purposes. Different tax thresholds and rates apply to residents and non-residents.
- Calculate Marginal Tax Rates: Once the tax thresholds are determined, the taxable income is divided into different tax brackets. Each tax bracket has a corresponding marginal tax rate. Apply the appropriate marginal tax rate to each portion of the taxable income.
- Apply Tax Credits and Rebates: Deduct any applicable tax credits and rebates from the calculated tax amount. Tax credits and rebates can include items such as medical aid credits, retirement fund contributions, and rebates for individuals over a certain age.
- Calculate the Final Tax Payable: Subtract the total tax credits and rebates from the calculated tax amount to arrive at the final income tax payable.
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