South Africa Tax Calculator (PAYE + UIF)

Work out your South African income tax for the 2026/27 tax year. Includes PAYE, UIF, medical scheme tax credits, retirement-annuity deductions, and SARS rebates for age 65+.

Just need monthly PAYE? The PAYE calculator is monthly-first with the same SARS 2026/27 tax tables, UIF cap, and rebates.

Work out your South African income tax for the 2026/27 tax year. Includes PAYE, UIF, medical scheme tax credits, retirement-annuity deductions, and SARS rebates for age 65+.

How is income tax calculated in South Africa?

SARS calculates income tax in seven progressive bands. Your gross salary is reduced by deductible retirement-annuity contributions (up to 27.5% or R350,000). The taxable amount is then taxed by band: 18% on the first R245,100, rising to 45% above R1,878,600. The primary rebate (R18,450 for 2026/27) and medical-aid tax credits are subtracted from the gross tax. UIF of 1% (capped at R177.12 per month) is also deducted from your gross.

Enter Your Details

Salary (R)

Pay Frequency

Age

Medical Aid Members (incl. you)

Retirement Annuity Contribution per Year (R) Tax-deductible up to 27.5% of income or R350,000, whichever is lower.

Your Results

Annual Take-Home

Monthly Take-Home

Annual PAYE

Effective Tax Rate

Breakdown

Item	Annual	Monthly

How to use this calculator

Takes about 2 minutes.

Enter your gross salary in Rand and pick your pay frequency
Select your age band to apply the correct SARS rebates (primary, secondary, tertiary)
Choose how many medical aid members you cover (you + dependants)
Add any annual Retirement Annuity contribution to claim the s11(k) deduction
Review your PAYE, UIF, monthly and annual take-home, and effective tax rate

Try these scenarios

Tap a scenario to load it into the calculator above.

Key concepts

Progressive SARS bands. South Africa applies a progressive income tax: each slice of taxable income is taxed at a higher rate. For the 2026/27 tax year the bands run from 18% up to 45% above R1,878,600 (SARS). Your average rate is always lower than your top marginal rate.

Primary, secondary, tertiary rebates. Every taxpayer gets a primary rebate (R18,450 for 2026/27) that reduces tax owed. Aged 65+ receive an additional secondary rebate of R10,140, and 75+ a tertiary rebate of R3,386. Below the tax threshold (R102,500 for under-65s), no income tax is owed.

Medical scheme tax credits. A monthly tax credit applies for each member of a registered medical scheme — R376 for the main member and first dependant, R254 for each additional dependant (2026/27 amounts). These are credits against tax owed, not deductions from income.

Retirement annuity (RA) deduction. Contributions to retirement funds (RA, pension, provident) are deductible up to 27.5% of the higher of taxable income or remuneration, capped at R350,000 per tax year. Excess contributions roll forward.

What this calculator excludes. The calculator handles PAYE on salaried income, retirement and medical credits. It does not model capital-gains tax, dividend withholding tax (20%), or provisional-tax additions for non-salaried income — those need a registered tax practitioner.

Frequently Asked Questions

What is PAYE in South Africa?

PAYE (Pay As You Earn) is the income tax deducted from an employee's salary by their employer and paid to SARS each month. The amount is determined by SARS's annual tax tables and reduced by personal rebates and medical scheme tax credits.

How is South African income tax calculated?

SARS uses seven progressive bands. The first R245,100 of taxable income is taxed at 18%; each subsequent band has a higher marginal rate up to 45% on income above R1,878,600. Your taxable income is gross minus deductible retirement contributions. After the bracketed tax is calculated, the primary rebate (R18,450 for 2026/27) plus age-based rebates and medical-aid credits are subtracted.

What is UIF and who pays it?

UIF (Unemployment Insurance Fund) is a 1% payroll deduction on gross salary, capped at R177.12 per month (R2,125.44 per year). Employers contribute another 1%. The fund pays short-term benefits for unemployment, illness, and maternity leave.

How much tax do I pay on R500,000 or R1,000,000 in South Africa?

For the 2026/27 tax year, on R500,000 (no RA, under 65, no dependants): roughly R98,417 income tax and R2,125 UIF, leaving about R399,458 net. On R1,000,000 (same assumptions): roughly R288,293 income tax and R2,125 UIF, leaving about R709,582 net. Adding a medical scheme membership and/or RA contributions reduces the tax further. Use the calculator above for the exact figure.

How does a Retirement Annuity reduce my tax?

Retirement Annuity (RA) contributions are deductible up to the lesser of 27.5% of your taxable income or R350,000 per tax year. Contributing reduces your taxable income, which reduces both the marginal tax you pay and the average effective rate. This is one of the most powerful legal tax-reduction tools for individuals in South Africa.

What are SARS medical aid tax credits?

For the 2026/27 tax year the medical scheme fees tax credit is R376 per month for the main member, R376 per month for the first dependant, and R254 per month for each additional dependant. These credits reduce your tax bill directly (not your taxable income), so the value is the same regardless of your marginal rate.

Provisional taxpayer or PAYE only — what's the difference for me?

If salary is your only income, your employer deducts PAYE monthly and you usually don't need to file a return unless above R500,000/year or with other income. If you earn rental, freelance, or investment income, you're a provisional taxpayer — you must register with SARS, pay estimated tax twice a year (end of August and end of February), and reconcile the year on your annual return. Missing the August payment triggers underestimation penalties.

What's the most common SARS tax-filing mistake?

Forgetting to claim medical aid main-member credit when you pay the scheme yourself (not through payroll). Many salaried South Africans pay medical aid privately and have the credit applied at the SARS-filing stage, not via PAYE — easy to miss and worth R4,512 a year per member. The second-most-common error is over-contributing to your RA above the 27.5%/R350k cap — excess contributions aren't lost (they roll forward) but they don't reduce tax in the current year either.

I have my take-home — what should I do next?

Three steps: (1) confirm your IRP5 matches the calculator output within R500/month — if not, your employer may have set up PAYE incorrectly; (2) check whether maxing your RA at 27.5% of income (or your medical aid tax credits) would meaningfully cut your tax — if so, talk to your payroll or open an RA; (3) if you owe SARS at year-end, set up provisional tax to avoid penalties on side income.

South Africa tax vs UK/USA tax — which has the highest effective rate on R600,000?

R600,000 SA salary (about £25,500 or $32,000 at 2026 rates, single, no dependants, no RA): effective tax rate roughly 23% in SA — leaving about R465,000 net. In the UK at £25,500: about 13% effective leaving £22,200. In the USA at $32,000: about 11% effective leaving $28,400. South Africa taxes middle incomes more heavily than the UK or USA because the lowest bracket is 18% (vs UK 20% above £12,570 personal allowance and US 10–12% with $14,600 standard deduction).

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

Last reviewed: 17 May 2026 · See editorial policy