How PAYE works
PAYE (Pay-As-You-Earn) is the income tax your employer withholds from your salary each month and pays to SARS on your behalf. The amount depends on your annualised salary, age, retirement contributions and medical-aid membership.
SARS publishes a sliding scale of brackets each tax year. For 2026/2027 the lowest bracket is 18% (up to R245 100 of taxable income) and the top bracket is 45% (above R1 878 600). Your marginal rate is the rate on your last rand of income — your effective rate is total tax ÷ total income, which is always lower.
Rebates and thresholds
Everyone gets the primary rebate of R17 820. People aged 65 to 74 get an additional R9 765, and 75+ get a further R3 249 on top. This means an under-65 pays no tax until R99 000 of taxable income (R8 250/month); for 65+ the threshold is R153 250; for 75+ it is R171 300.
Retirement contributions
You may deduct retirement-fund contributions (RA, pension, provident) up to 27.5% of your remuneration or taxable income, capped at R350 000 per year. ZACalc applies this cap automatically when you enter a monthly amount.
Frequently asked questions
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