South African Tax Formula:
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Definition: This calculator estimates income tax liability for South African residents based on SARS tax brackets and rebates.
Purpose: Helps employees and employers understand tax obligations and net salary calculations.
The calculator uses progressive tax brackets:
Where:
Tax Rates:
Tips: Enter your annual gross salary in ZAR and your age. The calculator automatically applies age-related rebates.
Q1: Are medical aid contributions considered?
A: This calculator shows basic tax. Medical tax credits would further reduce liability.
Q2: What about retirement fund contributions?
A: Contributions up to 27.5% of income (max 350,000 ZAR) are deductible but not included here.
Q3: How often are tax brackets updated?
A: SARS typically adjusts brackets annually in February budget speech.
Q4: Does this include UIF or other deductions?
A: No, this calculates only income tax. UIF is 1% of salary (capped).
Q5: What if I have multiple income sources?
A: This calculator assumes single employment income. Consult a tax practitioner for complex cases.