South African Tax Formula (2025):
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Definition: This calculator estimates income tax liability for South African residents based on the 2025 tax brackets and rebates.
Purpose: It helps employees and employers understand tax obligations and net salary calculations for the 2025 tax year.
The calculator uses the progressive tax formula:
Where:
Explanation: The calculator applies different tax rates to portions of income within specific brackets, then subtracts the applicable rebate.
Details: The 2025 tax brackets are progressive, with rates from 18% to 45%. The calculator automatically applies the correct rates to each portion of income.
Tips: Enter your annual salary in ZAR and select your age group. The calculator will show annual tax, monthly tax, and net monthly salary.
Q1: What tax year does this calculator cover?
A: This calculator uses the projected 2025 tax brackets and rebates for South Africa.
Q2: Are medical aid contributions considered?
A: No, this is a basic calculator. Medical tax credits would require additional inputs.
Q3: How are age rebates applied?
A: Higher rebates apply to taxpayers 65+ (R9,444) and 75+ (R3,144) compared to under 65 (R17,235).
Q4: Does this include UIF or other deductions?
A: No, this only calculates income tax. Other deductions would reduce net pay further.
Q5: Are tax thresholds considered?
A: Yes, the calculator automatically applies the tax-free thresholds through the progressive bracket system.