How to Calculate PAYE in South Africa
How to calculate PAYE on salary in South Africa: annualise gross pay, apply SARS 2026/2027 brackets, subtract rebates and medical credits, divide by 12. Free PAYE calculator included.
Quick answer
To calculate PAYE on salary in South Africa: annualise monthly gross remuneration, subtract pension deductions, apply SARS progressive tax brackets (18%–45% for 2026/2027), subtract rebates (R17,820 primary for under-65s) and medical aid credits, then divide by 12. Employers pay the result to SARS by the 7th of the following month via EMP201.
Step-by-Step Guide
Determine the employee's gross remuneration
Add up all taxable income: basic salary, overtime, commission, bonuses, allowances, and fringe benefits. This is the gross monthly remuneration before any deductions.
Annualise the income
Multiply the monthly gross by 12 to get the annual equivalent. For irregular income (bonuses), add it to the annual projection. This annualised figure is used for the tax bracket lookup.
Subtract allowable deductions
Deduct retirement fund contributions (pension, provident, RA) up to 27.5% of the greater of remuneration or taxable income, capped at R430,000 per year. This gives you the taxable income.
Apply the SARS tax brackets
Look up the taxable income in the SARS progressive tax table. Calculate: base amount + marginal rate × (taxable income - bracket threshold). For 2026/2027, brackets range from 18% (R0-R245,100) to 45% (above R1,878,600).
Subtract rebates
Subtract the age-based rebate: R17,820 (under 65), R27,585 (65-74), or R30,834 (75+). The rebate directly reduces the tax amount.
Subtract medical tax credits
Subtract Section 6A medical aid credits: R376/month for the first two members, R254 for each additional dependant. Multiply by 12 for the annual credit.
Calculate monthly PAYE
Divide the annual tax liability by 12. This is the monthly PAYE to deduct from the employee's salary. The employer must pay this to SARS by the 7th of the following month via EMP201.
Free Tool
PAYE / UIF / SDL Calculator
Calculate employee PAYE, UIF and SDL deductions with net salary and cost-to-company breakdown.
Frequently Asked Questions
What is PAYE in South Africa?
How do I calculate PAYE manually?
What are the PAYE tax brackets for 2026/2027?
When must PAYE be paid to SARS?
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