1. What is PAYE in South Africa?

Definition: PAYE (Pay As You Earn) is the system used by SARS to collect income tax from employees' salaries before they receive them.

Purpose: This calculator helps employees and employers estimate monthly tax deductions based on SARS tax brackets and rebates.

2. How Does the PAYE Calculator Work?

The calculator uses SARS tax brackets for the current tax year (2023/2024) and applies:

• Progressive tax rates from 18% to 45%
• Age-based rebates (Primary, Secondary, Tertiary)
• Annual to monthly conversion

3. Importance of PAYE Calculation

Details: Accurate PAYE estimation helps with:

• Personal financial planning
• Salary negotiations
• Employer payroll processing
• Tax compliance

4. Using the Calculator

Tips:

• Enter your gross annual income in ZAR
• Enter your current age (must be 18+)
• Results show annual tax, monthly deduction, and net income

5. Frequently Asked Questions (FAQ)

Q1: Are these SARS' official tax rates?
A: Yes, this uses 2023/2024 tax brackets. Rates may change in future tax years.

Q2: What's included in the rebates?
A: Primary rebate (R17,235), Secondary (R9,444 for 65+), Tertiary (R3,145 for 75+).

Q3: Does this include other deductions like UIF?
A: No, this calculates only PAYE income tax. Other deductions may apply.

Q4: How often are tax brackets updated?
A: SARS typically announces new brackets each February during the budget speech.

Q5: What if I have tax deductions?
A: This calculator shows basic PAYE. For precise calculations with deductions, consult a tax professional.