Tax Calculator

Wondering why your salary shrinks after taxes? Struggling to figure out how much PAYE and UIF deductions take from your paycheck? Our South African Tax Calculator for 2025/2026 makes it easy to see your nett salary clearly.

South African PAYE & UIF Calculator Tax Year 2025/2026

Monthly Gross Income

R

What Is PAYE and How Does It Work?

Pay As You Earn (PAYE) is a tax system where employers deduct income tax from your salary each month. The South African Revenue Service (SARS) uses these deductions to spread your annual tax over the year, so you don’t face a big bill during tax season. Employers send this money to SARS and give you an IRP5 certificate at year-end, showing your earnings and deductions. PAYE depends on your income, tax brackets, and rebates, which we’ll explain next.

South African Tax Brackets for 2025/2026

SARS uses a progressive tax system, meaning higher earners pay a larger percentage of their income. The 2025/2026 tax year, from March 1, 2025, to February 28, 2026, has seven tax brackets. These were announced in the Budget Speech on March 12, 2025, but no adjustments were made for inflation, leading to bracket creep, where your tax rate may rise even if your real income doesn’t. Here are the brackets:

  • R0 to R226,000: 18% of taxable income
  • R226,001 to R353,100: R40,680 + 26% of income above R226,000
  • R353,101 to R488,700: R73,726 + 31% of income above R353,100
  • R488,701 to R641,400: R115,762 + 36% of income above R488,700
  • R641,401 to R817,600: R170,734 + 39% of income above R641,400
  • R817,601 to R1,731,600: R239,452 + 41% of income above R817,600
  • R1,731,601 and above: R614,192 + 45% of income above R1,731,600

These rates apply to your taxable income, which is your gross income minus allowed deductions like retirement contributions.

Tax Rebates Reduce Your Tax Bill

Tax rebates lower the tax you owe. SARS offers three rebates based on age, but for 2025/2026, these remain unchanged from 2024/2025, increasing the tax burden due to inflation:

  • Primary Rebate: R17,235 for all taxpayers
  • Secondary Rebate: R9,444 for ages 65 to 74
  • Tertiary Rebate: R3,145 for ages 75 and older

For example, if your calculated tax is R60,000 and you’re under 65, the primary rebate reduces it to R42,765. Older taxpayers get extra relief.

Unemployment Insurance Fund (UIF) Contributions

The Unemployment Insurance Fund (UIF) supports workers who lose jobs or take maternity or adoption leave. Employees and employers each pay 1% of gross salary, totaling 2%. The contribution is capped at R177.12 per month (based on a R17,712 monthly salary ceiling). This cap hasn’t changed since June 2021. Some workers, like those working less than 24 hours a month or public servants, are exempt. UIF deductions show on your payslip and are paid to SARS monthly via the EMP201 form.

Medical Tax Credits for Healthcare Costs

SARS offers medical tax credits to reduce your tax if you pay for a medical scheme. For 2025/2026, these credits are unchanged, raising costs for taxpayers:

  • R364 per month for the main member and first dependent (R728 total)
  • R246 per month for each additional dependent

These credits lower your monthly PAYE. Additional medical expenses, like out-of-pocket costs for disabilities, may qualify for deductions when filing your tax return.

How to Calculate Your Nett Salary?

To find your nett salary, follow these steps:

  1. Find your annual gross income: Multiply your monthly salary by 12.
  2. Calculate annual tax: Use the tax brackets to compute tax on your taxable income.
  3. Subtract rebates: Apply the primary, secondary, or tertiary rebate based on your age.
  4. Divide by 12: Get your monthly PAYE.
  5. Calculate UIF: Take 1% of your monthly salary, capped at R177.12.
  6. Subtract deductions: Subtract PAYE, UIF, and other deductions (like medical credits) from your monthly salary.

Example: For a R30,000 monthly salary (R360,000 annually), under 65:

  • Annual tax:
    • R226,000 at 18% = R40,680
    • R134,000 (R360,000 – R226,000) at 26% = R34,840
    • Total: R40,680 + R34,840 = R75,520
  • Apply rebate: R75,520 – R17,235 = R58,285
  • Monthly PAYE: R58,285 ÷ 12 = R4,857.08
  • UIF: R177.12 (capped)
  • Nett salary: R30,000 – R4,857.08 – R177.12 = R24,965.80

This shows about 16.8% of your salary goes to PAYE and UIF.

Why Use a South African Tax Calculator?

A tax calculator simplifies these steps. Here’s why it helps:

  • Saves time: Get instant results without manual math.
  • Plans budget: Know your exact nett income for monthly expenses.
  • Evaluates jobs: Compare take-home pay for new job offers.
  • Supports retirement: Estimate post-retirement income after taxes.
  • Guides investments: See how extra income affects your tax.

Our calculator uses the latest 2025/2026 SARS rates for accuracy.

How to Use Our Tax Calculator?

Using our South African PAYE and UIF Calculator is simple:

  1. Enter your monthly gross salary.
  2. Choose your age group (under 65, 65-74, or 75+).
  3. Click Calculate to see results.
  4. Review the breakdown: annual income, tax, monthly PAYE, UIF, and nett salary.

The tool applies the correct brackets and rebates automatically. For complex cases, like multiple income sources, consult a tax professional.

Common Tax Questions Answered

Here are answers to frequent questions about South African taxes:

Q. Do I need to file a tax return?

If your salary is under R500,000 from one employer with no extra income or deductions, you may not need to file. Check SARS rules yearly.

Q. How do tax-free savings accounts work?

Contributions up to R36,000 per year (R500,000 lifetime) are tax-free, including interest and dividends.

Q. Can I lower my PAYE?

Contribute to retirement funds or update medical aid details with your employer to reduce taxable income.

Q. What if too much PAYE is deducted?

SARS refunds overpayments after your annual tax return.

Smart Ways to Save on Taxes

Reduce your tax legally with these strategies.

  • Medical Aid: Ensure your employer applies medical tax credits correctly.
  • Travel Allowance: Keep a logbook for business travel to claim deductions.
  • Home Office: Claim expenses like rent or utilities if you work from a dedicated home space.
  • Tax-Free Investments: Use your R36,000 annual limit to grow savings without tax.
  • Retirement Funds: Deduct up to 27.5% of taxable income (max R350,000) for pension, provident, or retirement annuity contributions.

Always follow SARS rules and consider a tax advisor for tailored plans

Stay Informed on Tax Changes

Tax rules change yearly, often announced in the National Budget Speech in February or March. For 2025/2026, no adjustments to brackets or rebates mean higher effective taxes due to inflation. Check these sources for updates:

Set reminders for tax deadlines, like EMP201 submissions (due seven days after month-end), to stay compliant.

Take Control of Your Finances

Understanding your 2025/2026 South African taxes helps you plan better. Our PAYE and UIF Calculator gives you a clear view of your nett salary after deductions. Use it to budget, evaluate job offers, or plan investments. For complex tax needs, a tax professional ensures you maximize savings while following SARS rules. Start calculating today to make smarter financial choices.