South Africa 2026/2027
This PAYE calculator works out your monthly South African income tax, UIF, and net take-home pay using the current 2026/2027 SARS tax tables. Enter your gross salary, age, medical aid members, and deductions for an accurate breakdown.
Before any deductions or tax
65+ gets secondary rebate; 75+ gets tertiary rebate
Total on medical scheme including yourself (0 if none)
Deductible up to 27.5% of income (max R350,000/yr)
80% is included in taxable income (SARS default)
Monthly take-home pay
R 38,219
From R 50,000 gross monthly salary - 2026/2027 SARS tables
Monthly PAYE
R 9,604
Monthly UIF
R 177
Effective rate
19.2%
Marginal rate
36.0%
| Gross base salary | R 50,000 |
| Less: pension / RA contribution | -R 2,000 |
| Less: PAYE income tax | -R 9,604 |
| Medical credits (applied against PAYE) | R 752 credit |
| Less: UIF contribution (1%) | -R 177 |
| Net take-home | R 38,219 |
Gross income
R 600,000
Taxable income
R 576,000
Annual PAYE
R 124,267
Annual net income
R 458,632
South Africa uses a progressive income tax system - higher earners pay a higher percentage on the portion of income above each bracket threshold. The 2026/2027 brackets (effective 1 March 2026) are:
| Taxable income | Rate on excess |
|---|---|
| R0 - R245,100 | 18% |
| R245,101 - R383,100 | 26% |
| R383,101 - R530,200 | 31% |
| R530,201 - R695,800 | 36% |
| R695,801 - R887,000 | 39% |
| R887,001 - R1,878,600 | 41% |
| Above R1,878,600 | 45% |
Primary rebate: R17,820. Secondary rebate (65+): R9,765. Tertiary rebate (75+): R3,249. Source: National Budget 2026, sars.gov.za.
Medical scheme fees tax credits (MTC) are a rand-for-rand reduction in your PAYE, not just a deduction from taxable income. This makes them more valuable than a deduction at the same amount.
For 2026/2027: R376/month for the main member, R376/month for the first dependant, and R254/month for each additional dependant. A family of four on medical aid receives R376 + R376 + R254 + R254 = R1,260/month in PAYE credits.
If your PAYE liability is lower than the credit, the excess credit is lost - it cannot be refunded or carried forward. SARS does allow you to claim additional medical expenses above 3.5x your monthly credit (for under-65s) on your annual tax return via section 6B.
Contributions to a registered pension fund, provident fund, or retirement annuity (RA) are deductible from your taxable income. The annual deduction is limited to the lesser of 27.5% of the greater of your remuneration or taxable income, or R350,000 per year.
For example: if you earn R600,000 per year and contribute R24,000 annually (R2,000/month) to an RA, you reduce your taxable income by R24,000. At a 36% marginal rate this saves roughly R8,640 in tax per year - or R720/month.
Contributions above the annual cap are not wasted - they are recorded and rolled forward to be deducted in future years, including on retirement. This makes RA contributions a powerful and flexible tax-saving tool.
Travel allowances are a common employer benefit. For PAYE purposes, SARS requires employers to include 80% of the travel allowance in the employee's gross income for monthly PAYE calculations (the remaining 20% is treated as tax-exempt up front).
At year-end, the employee can submit an IRP5 tax return claiming actual business travel expenses using a logbook. If actual business mileage exceeds the 20% already excluded, SARS will refund the difference. If less, additional tax is owed.
Practical note: Keep a detailed logbook if you receive a travel allowance. SARS accepts the logbook method (actual km) or the deemed cost method (fixed km table rates). A logbook is always safer if you drive substantially for work.
PAYE is calculated on your annual taxable income using progressive tax brackets set by SARS. Your employer deducts a monthly portion from your salary based on your estimated annual tax liability. For 2026/2027 the brackets range from 18% on income up to R245,100 to 45% on income above R1,878,600.
Both you and your employer each contribute 1% of your gross salary to UIF, subject to an earnings ceiling of R17,712 per month for 2026/2027. This means the maximum employee UIF contribution is R177.12 per month.
The primary rebate for 2026/2027 is R17,820. All taxpayers receive this. Those aged 65-74 also receive the secondary rebate of R9,765 and those 75+ also receive the tertiary rebate of R3,249. These rebates effectively mean the tax-free threshold is approximately R99,000 per year.
Medical scheme fees tax credits reduce your PAYE payable (not your taxable income). For 2026/2027 you receive R376 per month for yourself, R376 for your first dependant, and R254 for each additional dependant. The credit is applied directly against the tax you owe.
Yes. Contributions to a pension fund, provident fund, or retirement annuity are deductible from your taxable income. The deduction is the lesser of 27.5% of your taxable income or R350,000 per year. This can meaningfully reduce your monthly PAYE.
Get a free, no-obligation bond quote from ooba - South Africa's leading bond originator.
Get My Free Quote →We may receive a commission if you apply. This does not affect the rate you are offered.