1. What is PAYE Tax in South Africa?

Definition: PAYE (Pay As You Earn) is the system used in South Africa to deduct income tax from employees' salaries each month.

Purpose: This calculator helps estimate how much tax you'll pay annually and monthly based on your income and age group.

2. How Does the PAYE Calculator Work?

The calculator uses progressive tax brackets:

Where:

• Tax is calculated progressively across income brackets
• Rebates are subtracted from the total tax amount
• Age determines additional rebates (secondary and tertiary)

3. Importance of PAYE Calculation

Details: Understanding your tax liability helps with financial planning, budgeting, and ensuring correct tax deductions.

4. Using the Calculator

Tips: Enter your annual income in ZAR and select your age group. The calculator will show your estimated annual and monthly tax.

5. Frequently Asked Questions (FAQ)

Q1: What are the current tax brackets?
A: Tax brackets are updated annually by SARS. This calculator uses the latest available rates.

Q2: How do age rebates work?
A: Additional rebates apply for taxpayers aged 65+ (secondary) and 75+ (tertiary).

Q3: Does this include other deductions?
A: No, this calculates only income tax. Other deductions like UIF would be additional.

Q4: What if I have tax credits?
A: This calculator shows gross tax liability before any tax credits are applied.

Q5: How often are tax brackets updated?
A: Typically in the annual budget speech, effective from March each year.