Skip to content

Find out How Tax Calculator Works in South Africa

South African citizens need to pay income tax, which is governed by the SARS income tax system. In this way, for you to know how much you must pay, you can use the tax calculator, which is a tool that offers the calculation of the amount to be paid.




In this way, you can have access to deadlines, allowances and income tax calculator for South Africa.

SARS is responsible to collect income tax in South Africa, which means South African Revenue Service.

Therefore, all citizens living and working in South African territory need to pay for the tax in accordance with the current laws of the SARS.

The value will depend on some variables, such as your tax residency status and earning amount.

The South African income tax on the resident’s worldwide income is charged, with adequate relief to avoid double taxation foreigners, in addition to permitted exemptions and deductions.




However, it should be considered that non-residents would only be taxed in their income from South African sources.

So that you can get your doubts about the SARS tax calculator, Income Tax Act and Salary calculator, we prepare this guide.

Continue reading below:

What is Tax Calculator?

In South Africa, all workers need to pay their proper taxes.

It works under the SARS regime, as mentioned above.

However, obviously the value that each taxpayer pays is proportional to his salary.

It is, in the sense that the Income Tax Calculator tool helps the worker to know how much to pay.

Through the income tax calculator South Africa, you can check the percentage of the entry according to your income.

This allows the amount paid per citizen to be proportional to your earnings and not be unbalanced.

In addition, with the SA tax calculator, you can check your monthly and yearly deductions to get an overview of how much of your salary is intended for taxes.

However, each year we have new parameters, since factors such as inflation cause the tax value to change.

For example, if we consider the tax calculator 2017, the fiscal calendar of 2017 and the salary of the citizens of this year should be considered.

Who Has to Pay Income Tax in South Africa?

South Africa operates on a residency-based taxation system. It means that residents (whether permanent or temporary) pay tax on their worldwide incomes.

Residents are persons who have citizenship or residence permits.

However, we also consider as a resident of those living in the country for more than 91 days in each of the last 5 fiscal years.

This applies for tax purposes and tributaries, or at least 915 days in total in all five years.

The status of tax residence is of paramount importance to determine the payment of the income tax of each citizen.

People classified as non-residents will pay the South African income tax only on income earned within the country.

What Types of Earnings are Subject to Income Tax?

In South Africa, SARS stipulates two types of income tax taxation: individual and business.

The taxes and conditions that apply to corporate income tax are distinct from the individual.

In this way, we list below the types of gains that apply to individual income tax. Check it:

  • Investment income such as interest or dividends;
  • Annuities;
  • Certain capital gains.
  • Royalties;
  • Employment income including salaries, bonuses, overtime and taxable benefits and allowances;
  • Profits or losses from a business or self-employed trade;
  • Director’s fees;
  • Rental income;
  • Pension income.

That’s why we use the South African tax calculator: So you can know how much of your salary goes to deduct income tax.

Retirement Annuity Calculator

Currently you can use the tax calculator South Africa, which is available directly on the TAXTIM website.

With this feature, you should report data as the year you want to calculate, your total earnings, the frequency you receive your salary and your age.

Based on this information, the system will hold the tax margin.

Through this website, you can also check the retirement annuity calculator.