2026/2027 SARS tax year · Updated 1 May 2026

SA Salary & PAYE Calculator

Calculate your exact take-home pay after PAYE income tax and UIF. Updated for the 2026/2027 SARS tax year (February 2026 Budget). Includes medical aid credits and pension/RA deductions.

Enter your gross salary to see your take-home pay after PAYE and UIF.

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Pension and RA contributions lower your tax bill

Every rand you contribute to a pension fund, provident fund, or retirement annuity reduces your taxable income — up to 27.5% of your gross income (max R350,000/year). Add your monthly contribution above to see the real after-tax cost.

Medical aid tax credits work differently from a deduction

SARS grants a fixed monthly credit per medical aid member — R376 for the main member, R376 for the first dependant, R254 for each additional dependant (2026/27 rates). This is deducted directly from your tax bill, not from your taxable income, so it benefits everyone equally regardless of income level.
Written by Rand Tools Editorial Team
Updated 1 May 2026

✓ Fact-checkedUpdated 1 May 2026Sources: SARS 2026/27 tax tables·UIF Act·February 2026 BudgetMethodology

Data: Effective 1 March 2026 · SARS 2026/27 tax tables · UIF Act 63 of 2001 · See methodology

How is your take-home pay calculated?

Your South African take-home pay is your gross salary minus three deductions: PAYE income tax, UIF, and any pension or medical aid contributions. PAYE is the largest deduction for most employees — it's calculated using SARS's progressive tax brackets, which means higher earners pay a higher percentage of tax.

For the 2026/2027 tax year, the tax rate starts at 18% for income below R237,100 and goes up to 45% for income above R1,817,000 annually. Most employed South Africans fall into the 26–36% marginal rate bracket.

SARS income tax brackets 2026/2027

South Africa uses a progressive tax system — you only pay the higher rate on the portion of income that falls within that bracket, not on your entire salary. The table below shows the 2026/2027 brackets effective from 1 March 2026 (February Budget).

Taxable income (annual)Rate
R0 – R237,10018% of each rand
R237,101 – R370,500R42,678 + 26% of excess over R237,100
R370,501 – R512,800R77,362 + 31% of excess over R370,500
R512,801 – R673,000R121,475 + 36% of excess over R512,800
R673,001 – R857,900R179,147 + 39% of excess over R673,000
R857,901 – R1,817,000R251,258 + 41% of excess over R857,900
R1,817,001 and aboveR644,489 + 45% of excess over R1,817,000

After applying the bracket, SARS deducts a primary rebate of R17,235 (under 65) from the tax amount — not from your income. This effectively means you pay no tax if your annual income is below R95,750 (approximately R7,979/month gross).

Take-home pay at common SA salary levels

The table below shows the net pay, PAYE deduction, and effective rate for five typical gross salaries — all calculated using the 2026/2027 SARS brackets, no pension or medical aid. Use the calculator above for your exact figure.

Gross/monthNet payEffective rate
R10,000R9,5364.6%
R20,000R17,64011.8%
R30,000medianR25,04016.5%
R50,000R38,52023.0%
R100,000R68,63331.4%

Assumes single earner, under 65, no pension or medical aid, 2026/2027 tax year. Effective rate includes both PAYE and UIF (1%, capped at R177/month).

Worked example: R30,000/month gross salary

To see how the calculator arrives at your result, here is a step-by-step calculation for a R30,000 gross monthly salary with no pension or medical aid contributions:

1. AnnualiseR30,000 × 12 = R360,000 taxable income
2. Apply bracketR77,362 + 31% × (R360,000 − R370,500)… wait — R360,000 falls in the second bracket: R42,678 + 26% × (R360,000 − R237,100) = R42,678 + R31,954 = R74,632
3. Subtract rebateR74,632 − R17,235 = R57,397 annual tax
4. Monthly PAYER57,397 ÷ 12 = R4,783/month
5. Subtract UIFR30,000 × 1% = R300 (but capped at R177.12)
6. Net salaryR30,000 − R4,783 − R177 = R25,040/month take-home

How pension and medical aid reduce your tax

Two of the most valuable tax levers available to South African employees are retirement fund contributions and medical aid tax credits.

Pension / RA contributionsreduce your taxable income before PAYE is calculated. If you contribute R3,000/month to a pension fund, your taxable income drops by R3,000 — so you don't pay tax on that R3,000. At a 31% marginal rate, that saves you R930/month in PAYE. This is why your net pay often doesn't fall by the full pension amount when you join a fund — SARS is effectively subsidising part of your contribution.

Medical aid tax credits (MTC) work differently — they are deducted from your tax liability, not your income. For the 2026/2027 tax year, SARS allows: R376/month for the main member, R376 for the first dependant, and R254 for each additional dependant. These credits apply regardless of your income level.

The combined effect of pension contributions and medical aid credits can reduce your effective tax rate significantly. A R30,000/month earner contributing R2,000 to a pension and covering two dependants on medical aid could reduce their monthly PAYE from R4,783 to approximately R3,500 — a saving of over R1,280/month.

Understanding your South African payslip

South African employers are required by the BCEA to give every employee a written payslip each pay period. Here is what the key line items mean:

Basic salaryYour fixed monthly pay as per your employment contract — before any allowances or deductions.
AllowancesTravel, housing, cellphone, or meal allowances paid on top of basic. Most allowances are fully taxable — SARS only partially exempts approved travel allowances up to R4.28/km for 2026/27.
Gross earningsBasic + all allowances before any deductions. This is the figure PAYE is calculated on.
PAYEIncome tax withheld by your employer and paid to SARS on your behalf each month. Calculated using the SARS tax tables for the 2026/27 tax year.
UIF1% of your gross earnings, capped at R177.12/month. Your employer matches this contribution. Entitles you to partial income replacement if you become unemployed.
Pension / provident fundYour employee contribution to your retirement fund. Typically 5–7.5% of your basic salary. Reduces your taxable income rand-for-rand.
Net payWhat is deposited into your bank account after all deductions. This is the number the calculator shows as your take-home pay.

Frequently asked questions

How is PAYE calculated in South Africa?

PAYE (Pay As You Earn) is calculated by annualising your monthly salary, applying the SARS progressive tax brackets, subtracting your rebates (based on age), then dividing by 12 for your monthly tax amount.

What is UIF and how much do I pay?

UIF (Unemployment Insurance Fund) is 1% of your gross salary, capped at the maximum insurable earnings of R17,711.58 per month — so you'll never pay more than R177.12/month.

Does a medical aid reduce my tax?

Yes. SARS provides a monthly Medical Aid Tax Credit (MTC): R376 for the main member, R376 for the first dependant, and R254 for each additional dependant. This is deducted directly from your tax liability.

How does a pension or RA reduce my tax?

Contributions to an approved pension fund or retirement annuity (RA) reduce your taxable income by up to 27.5% of your remuneration, capped at R350,000 per year.

What is the difference between gross and net salary?

Gross salary is your total pay before any deductions — the figure on your employment contract. Net salary (take-home pay) is what lands in your bank account after PAYE tax, UIF, pension, and medical aid are subtracted. For most South African employees, net salary is roughly 75–85% of gross salary.

How do you calculate gross salary?

If you know your annual package, divide by 12 to get gross monthly salary. If you are paid hourly, multiply your hourly rate × hours per week × 52 ÷ 12. Gross salary includes your basic pay plus any fixed allowances (travel, housing) before any deductions.

What is the minimum salary to pay tax in South Africa?

For the 2026/2027 tax year, you pay no PAYE if your annual taxable income is below R95,750 (under age 65). This equates to roughly R7,979/month gross. If you earn below this threshold, your employer should not be deducting PAYE from your salary.

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