Income Tax Calculator

How PAYE works in 2026

Pay-As-You-Earn (PAYE) is how most salaried South Africans settle personal income tax during the year. Your employer withholds tax from each payslip and pays it over to SARS. At year-end, your tax return reconciles what was withheld with what you actually owe after deductions, rebates and credits.

This calculator estimates tax on taxable income using a simplified progressive model: higher slices of income are taxed at higher rates. It is designed for planning and education—not as a substitute for eFiling or a tax practitioner.

2026 brackets overview (progressive tax)

South African personal income tax is progressive. You do not pay your top rate on every rand; you pay each band’s rate only on the income that falls inside that band.

In broad terms for the current cycle:

• Lower income is taxed from 18% upward after the tax-free threshold effect of rebates
• Top marginal rate reaches 45% on the highest band (income above roughly R1.817 million in the model used on this site)
• Rates step through intermediate bands (26%, 31%, 36%, 39%, 41%) as taxable income rises

Always check the latest SARS tax tables for the official year of assessment, because Budget changes can adjust thresholds even when rates look familiar.

Rebates (why your “tax on tables” is not your final bill)

Individuals reduce normal tax with rebates. The primary rebate (about R17,235 in the model used here) applies to all taxpayers. Additional secondary and tertiary rebates apply from age 65 and 75. Rebates are why two people with the same gross pay but different ages can owe different tax.

Medical scheme fees tax credits and allowable deductions (for example retirement annuity contributions within limits) can further change your final liability. Those are handled in more detail on the Refund Estimator and in our Resources guides.

Worked example

Assume:

• Taxable income: R450,000 per year
• Under 65 (primary rebate only)
• No other deductions in this simple example

Rough flow:

1. Apply the progressive table to R450,000 (base tax in lower bands + marginal rate on the amount in the current band).
2. Subtract the primary rebate.
3. Divide annual net tax by 12 for an approximate monthly PAYE figure.
4. Take-home ≈ gross monthly pay − PAYE (before UIF, medical aid, pension, etc.).

Use the calculator above with R450000, period Annual, and your age to see tax, effective rate and monthly take-home update instantly.

Effective rate vs marginal rate

• Marginal rate — the rate on your next rand of taxable income
• Effective rate — total tax ÷ taxable income

Someone in a 31% band does not pay 31% on their whole salary. Effective rate is usually lower, which is why the results panel shows both tax in rands and an effective percentage.

Common mistakes

1. Comparing “gross” offers without estimating PAYE
2. Ignoring age-related rebates
3. Treating the calculator output as final liability without medical credits or RA deductions
4. Confusing monthly gross with annual taxable income
5. Withdrawing from the Two-Pot Savings Pot without modelling the extra tax at your marginal rate

Related tools on CalculatorHub SA

• Two-Pot withdrawal calculator — tax on Savings Pot access
• VAT calculator — 15% add/remove for business pricing
• Property transfer duty — acquisition tax on property
• Resource Hub — guides and articles for the 2026 cycle

faqs

1. What are the 2026 tax brackets?
   Rates start at 18% on the lower band and rise in steps to 45% on the highest band (income above about R1.817 million in this model). Official thresholds are published by SARS each Budget.
2. How much is the primary tax rebate?
   In the model used on this site for 2026, the primary rebate is R17,235 and reduces normal tax for individual taxpayers.
3. Is this the same as my eFiling result?
   Not necessarily. eFiling includes full IRP5 data, deductions, credits and assessed results. This tool is a planning estimate.
4. Does the calculator include UIF?
   The main income tax view focuses on income tax / PAYE-style tax. UIF and benefits are separate payroll items.
5. How do retirement annuities affect tax?
   RA contributions can reduce taxable income within Section 11F limits (generally up to 27.5% of the greater of remuneration or taxable income, with an annual cap). Model refund impact on the Refund Estimator.
6. Where should I go next?
   If you are considering a Savings Pot withdrawal, use the Two-Pot calculator with the same annual income so the marginal rate matches.