🇿🇦 PAYE Calculator (South Africa)

Work out your monthly PAYE for the 2026/27 SARS tax year. Includes UIF (1% capped), medical scheme tax credits, age-based rebates, and the s11(k) Retirement Annuity deduction.

🇿🇦 PAYE Calculator (South Africa) — SARS 2026/27 tax tables, primary + age rebates, medical scheme tax credits, UIF (1% capped at R177.12/mo), and the s11(k) Retirement Annuity deduction. Defaults shown in Rand (ZAR), monthly-first.

Enter Your Details

Gross Salary (R)

Salary Frequency

Age Band controls SARS rebate

Medical Scheme Members incl. yourself

Retirement Annuity Contribution (R, per month) Tax-deductible up to 27.5% of gross or R350,000 per year, whichever is lower (s11(k)).

PAYE Breakdown

Monthly Take-Home

—

After PAYE, UIF, RA cash outflow

Annual Take-Home

—

Gross − PAYE − UIF − RA

Monthly PAYE

—

After rebate + medical credit

Effective Tax Rate

—

PAYE + UIF ÷ gross

UIF (capped)

—

1% capped at R177.12/mo

Marginal Rate

—

Rate on next rand earned

Rebates (annual)

—

SARS primary + age rebates

Medical Credit (annual)

—

R376/R376/R254 per month

Methodology & Sources

SARS 2026/27 progressive brackets (18% on first R245,100 rising to 45% above R1,878,600). Primary rebate R17,235 (under 65), secondary +R9,444 (65–74), tertiary +R3,145 (75+). Medical scheme fees tax credit: R376/month main member, R376/month first dependant, R254/month each additional. UIF: 1% of monthly remuneration capped at R177.12/month (R2,125.44/year). Retirement Annuity deduction (s11(k)): lesser of 27.5% of remuneration or R350,000 per year. Excess RA contributions roll forward (no current-year tax benefit).

SARS tax tables: SARS — Rates of Tax for Individuals
UIF Act: Unemployment Insurance Contributions Act
Medical credits: SARS — Medical Scheme Fees Tax Credit

Last verified: May 2026.

Frequently Asked Questions

What is PAYE and how is it calculated in South Africa?

PAYE (Pay As You Earn) is the income tax your employer deducts from your salary each month and pays to SARS on your behalf. The calculation: gross salary minus deductible Retirement Annuity contributions equals taxable income; SARS applies seven progressive brackets (18% up to 45%) to that taxable income; then the primary rebate (R17,235 for 2026/27), any age-based rebates, and medical scheme tax credits are subtracted from the gross tax. The remainder, divided by 12, is your monthly PAYE.

What is the UIF cap for 2026/27 and why is it so low?

UIF (Unemployment Insurance Fund) is 1% of monthly remuneration, but the contribution is capped at R177.12/month (R2,125.44/year). The cap exists because UIF is benefit-linked — you can only ever claim UIF benefits up to a maximum amount (currently ~R17,712/month for 238 days), so the contribution is capped to match. Employers contribute an additional 1% (same cap). If you earn above R17,712/month, you pay the full R177.12 cap regardless of your salary.

How much PAYE do I pay on a R35,000/month salary?

R35,000/month = R420,000/year gross. SARS 2026/27 calculation (under 65, 1 medical member, no RA): taxable income R420,000 → gross tax R97,338 → less primary rebate R17,235 → less medical credit R4,512 → annual PAYE R75,591 → monthly PAYE R6,299. Plus UIF R177.12/month. Monthly take-home: ~R28,524 (≈81.5% of gross). Adding a R3,000/month RA contribution drops monthly PAYE to ~R5,388 and take-home to ~R26,435 (after the RA cash outflow).

What's the difference between marginal and effective tax rate?

Your marginal rate is the bracket your top rand falls in (the rate on the next rand you earn). Your effective rate is total tax divided by gross salary — always lower than marginal because the lower brackets pulled down the average. Example at R500k under 65: marginal rate 31%, effective rate ~20.4%. The marginal rate matters for decisions ("if I get a R10k raise, how much do I keep?"); the effective rate matters for budgeting ("what's my real take-home?").

How does a Retirement Annuity reduce my PAYE?

RA contributions are deductible from taxable income up to the lesser of (a) 27.5% of your remuneration or (b) R350,000 per tax year. Because the deduction reduces taxable income BEFORE the brackets apply, the saving equals your marginal rate × contribution amount. For someone in the 31% bracket contributing R3,000/month (R36,000/year), the tax saving is R36,000 × 31% = R11,160/year — the effective cost of the R36,000 contribution is only ~R24,840. Excess contributions above the cap roll forward to future tax years.

When am I required to file a SARS tax return?

For 2026/27, the filing threshold is R500,000 gross remuneration per year if all of the following apply: your income is only from one employer, you don't claim any deductions other than the pension/RA on your IRP5, and you don't have other income sources (rental, freelance, capital gains, interest above R23,800 for under-65s). If you fall outside any of those, you must file. SARS auto-assessment also pre-fills a return for most salaried taxpayers — accept it, or file your own if it's wrong.

What is the medical scheme fees tax credit?

A direct reduction in PAYE (not a deduction from taxable income) for paying medical scheme contributions. For 2026/27: R376/month for the main member, R376/month for the first dependant, R254/month for each additional dependant. A four-person family (you + spouse + 2 kids) gets R1,260/month = R15,120/year off PAYE. This applies whether you pay the scheme privately or via payroll — but if you pay privately, you must claim it manually on your annual return (a commonly missed credit).

How is PAYE different from provisional tax?

PAYE is monthly withholding from salary by your employer. Provisional tax is twice-yearly self-assessment (end August + end February) for taxpayers with non-salary income — rental, freelance, investment, or business income above R30,000/year of non-PAYE income. If you have both salary AND side income, you're a provisional taxpayer for the side income only; your salary still has PAYE deducted normally. Under-estimating in August triggers a penalty when you reconcile in February.

Does PAYE include tax on bonuses and 13th cheques?

Yes. Bonuses are treated as additional remuneration and PAYE is calculated on the annualised total. SARS allows employers to apply two methods: (a) average rate — bonus added to YTD gross, total tax recalculated, difference is the bonus PAYE; or (b) marginal rate — bonus taxed at your highest marginal bracket. Method (a) is more common and slightly more taxpayer-friendly when your bonus pushes you near (but not into) a new bracket.

How to use this calculator

Takes about 2 minutes.

Enter your gross salary in Rand and pick monthly or annual
Select your age band so the correct SARS rebate (primary / secondary / tertiary) applies
Pick how many medical scheme members you cover (you + dependants)
Add your monthly Retirement Annuity contribution to claim the s11(k) deduction
Read off your monthly PAYE, UIF, take-home and effective + marginal tax rates

Try these scenarios

Tap a scenario to load it into the calculator above.

Key concepts

SARS 2026/27 brackets at a glance. 18% to R245,100; 26% to R370,500; 31% to R512,800; 36% to R673,000; 39% to R857,900; 41% to R1,878,600; 45% above. The 18% entry rate is high by international standards (UK starts at 20% but only after a £12,570 personal allowance; US starts at 10% with $15,000 standard deduction), which is why South African middle incomes face heavier marginal tax than equivalent US/UK earners.

Rebates, not deductions. The primary rebate (R17,235) and the age-based secondary (+R9,444) / tertiary (+R3,145) rebates are subtracted directly from gross tax — they're not income deductions. This means everyone gets the same primary rebate value regardless of marginal rate, unlike an RA contribution where the value scales with your bracket. The under-65 break-even point (where PAYE = 0) is roughly R95,750 gross income for 2026/27.

UIF is benefit-capped, not income-capped. The R177.12/month UIF cap exists because UIF benefits themselves are capped — you can only ever claim up to ~R17,712/month for 238 days if unemployed. The contribution cap matches the benefit ceiling. If you earn above R17,712/month you pay the same R177.12 as a R17,712 earner — UIF is regressive above that threshold.

RA contributions are the highest-leverage tax move. Up to the lesser of 27.5% of remuneration or R350,000/year, RA contributions reduce taxable income at your full marginal rate. A 39% marginal-bracket earner contributing the max R350,000 saves R136,500 in tax — almost 40% of the contribution funded by SARS. This is why R350k is the magic number for high-income tax planning; pair it with a low-cost passive RA (Sygnia / 10X / Easy Equities) to compound for retirement.

Medical credit beats medical deduction. Pre-2012 medical contributions were income deductions (worth more to high earners). SARS reformed to a flat tax credit (R376/R376/R254 per month) so that the value is identical regardless of marginal bracket. A R4,512/year primary-member credit is worth ~R4,512 to anyone — vs the old deduction which gave a 45% earner R2,030 and an 18% earner R812 on the same R4,512. Equitable, but it means high-earners no longer get a big PAYE break from medical aid.

Written and maintained by James Blanckenberg, Founder & Editor, FinCalcHub.

Last reviewed: 17 May 2026 · See editorial policy