South Africa Tax Formula:
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Definition: This calculator estimates income tax liability for salaried individuals in South Africa based on current tax brackets and rebates.
Purpose: It helps employees and employers understand tax obligations and net take-home pay under South Africa's progressive tax system.
The calculator uses the formula:
Where:
Details: The calculator uses the current tax brackets:
Tips: Enter your annual gross salary in ZAR and your age. The calculator automatically applies age-related rebates.
Q1: Are tax rebates automatically applied?
A: Yes, primary rebate is applied to all, with additional rebates for those 65+ and 75+.
Q2: Does this include medical tax credits?
A: No, this is a basic calculator. Medical credits would further reduce tax liability.
Q3: How often are tax brackets updated?
A: Typically annually during the budget speech. Always verify current rates.
Q4: Does this calculator account for retirement contributions?
A: No, this shows gross tax liability before retirement fund deductions.
Q5: What's the tax-free threshold?
A: There's no specific tax-free amount, but rebates effectively create one (about R95,750 for under 65).