Question 1

How is PAYE calculated in South Africa?

Accepted Answer

PAYE is calculated on your annual taxable income using a sliding scale of tax brackets set by SARS. Your employer deducts it monthly as a pro-rated portion of your estimated annual tax liability.

Question 2

What is the UIF rate in South Africa?

Accepted Answer

Both you and your employer each contribute 1% of your gross salary to UIF, subject to an earnings ceiling (currently R17,712 per month for 2025/2026).

Question 3

What is the primary tax rebate for 2025/2026?

Accepted Answer

The primary rebate for the 2025/2026 tax year is R17,235. This means anyone earning below approximately R95,750 per year pays no income tax.

Question 4

How do medical tax credits work in South Africa?

Accepted Answer

Medical tax credits reduce your tax payable (not your taxable income). You get R364/month for yourself and your first dependant, and R246/month for each additional dependant.

Question 5

Does pension contribution reduce my PAYE?

Accepted Answer

Yes. Contributions to a pension fund, provident fund, or retirement annuity are deductible from your taxable income, up to 27.5% of your taxable income (capped at R350,000 per year).

PAYE Tax Calculator — South Africa 2025/2026

How PAYE works in South Africa