How we calculate take-home pay in South Africa (2026/27 tax year)

By EasyGov (Pty) Ltd editorial team · Last updated 1 November 2026

Our salary calculator at jobs.randswitch.com/salary-calculator answers one question: if you earn a certain amount before tax, roughly how much lands in your bank account? This guide shows exactly how we get there, which SARS figures we use, what we leave out, and how to check our maths with a calculator and a pen.

We publish the method because a take-home number you cannot check is not worth much. If you find a mistake, email us (details at the end) and we will fix it.

The tax year we use

We use the SARS tax year that runs from 1 March 2026 to 28 February 2027 (SARS calls this the "2027 year of assessment"). All brackets, rebates and credits below come from the SARS "Rates of tax for individuals" page and the SARS Budget Tax Guide 2026, both opened on 1 November 2026.

Step 1: Work out annual taxable income

We start from your gross pay and turn it into an annual figure. If you enter a monthly amount, we multiply by 12. If you are paid in US dollars, euros or pounds, we first convert to rand at a mid-market exchange rate that refreshes every 6 to 24 hours (more on that below).

If you contribute to a retirement annuity (RA), we subtract the deductible part of that contribution before applying the tax table. Everything else (travel allowances, business expenses, capital gains, rental income) is left out on purpose to keep the tool simple.

Step 2: Apply the 2026/27 tax brackets

SARS taxes income in bands. You only pay the higher rate on the portion of income above each threshold.

Taxable income (per year)	Tax
R1 – R245 100	18% of taxable income
R245 101 – R383 100	R44 118 + 26% of the amount above R245 100
R383 101 – R530 200	R79 998 + 31% of the amount above R383 100
R530 201 – R695 800	R125 599 + 36% of the amount above R530 200
R695 801 – R887 000	R185 215 + 39% of the amount above R695 800
R887 001 – R1 878 600	R259 783 + 41% of the amount above R887 000
R1 878 601 and above	R666 339 + 45% of the amount above R1 878 600

Source: SARS, rates of tax for individuals, 2027 tax year.

Step 3: Subtract the rebates

Every taxpayer gets a primary rebate, and older taxpayers get extra:

Rebate	Amount per year	Who gets it
Primary	R17 820	Everyone
Secondary	R9 765	Age 65 and older
Tertiary	R3 249	Age 75 and older

Because of the rebates, nobody under 65 pays tax on taxable income up to R99 000 a year. SARS lists the thresholds as R99 000 (under 65), R153 250 (65 to 74) and R171 300 (75 and older). Our calculator agrees: R99 000 a year gives R0 tax, and R99 100 gives R18.

Step 4: Subtract medical scheme fees tax credits

If you belong to a medical scheme, SARS gives a monthly credit that comes straight off your tax:

R376 a month each for the main member and the first dependant
R254 a month for each additional dependant

So a family of four on a medical scheme gets R376 + R376 + R254 + R254 = R1 260 a month, or R15 120 a year. We do not model the additional medical expenses credit, which depends on out-of-pocket costs.

Step 5: Take-home pay

Take-home pay = gross pay − income tax − RA contribution. Tax can never go below zero.

Worked example: R50 000 a month

Annual gross: R50 000 × 12 = R600 000.
Bracket: R600 000 falls in the R530 201 – R695 800 band.
Tax before rebates: R125 599 + 36% × (R600 000 − R530 200) = R125 599 + R25 128 = R150 727.
Less primary rebate: R150 727 − R17 820 = R132 907 a year.
Monthly tax: R132 907 ÷ 12 = about R11 076.
Take-home: R50 000 − R11 076 = about R38 924 a month.

That is an average tax rate of 22.2%, but a marginal rate of 36%. In other words, the next R1 000 you earn would be taxed at R360.

The same method at other salaries

These come from our calculator code (tax year 2026/27, under 65, no medical scheme, no RA):

Gross a month	Tax a month	Take-home a month	Average rate	Marginal rate
R20 000	R2 115	R17 885	10.6%	18%
R30 000	R4 681	R25 319	15.6%	26%
R50 000	R11 076	R38 924	22.2%	36%
R80 000	R22 658	R57 342	28.3%	41%
R150 000	R51 358	R98 642	34.2%	41%

What changes the R50 000 example:

Medical scheme, two people: tax drops to about R10 324 a month (credits of R752 a month).
Medical scheme, four people: tax drops to about R9 816 a month.
Age 65: the secondary rebate brings tax to about R10 262 a month.
RA of R5 000 a month: tax drops to about R9 276 a month. Your cash in hand falls to about R35 724 because R5 000 goes into the RA, but the tax saving is about R1 800 a month.

Retirement annuity rules (and a correction)

SARS allows a deduction of up to 27.5% of the greater of your remuneration or taxable income, capped at R430 000 a year for 2026/27 (Budget Tax Guide 2026 and the SARS employer guide for the 2027 year). Anything above the limit carries forward to the next year.

Correction: when we checked our own tool for this guide, it still used the older R350 000 cap. That only affected people contributing more than R350 000 a year to an RA. The calculator and our salary pages now use R430 000.

Foreign currency pay

For dollar, euro and pound salaries we convert using a mid-market rate from a public exchange-rate feed, refreshed every 6 to 24 hours. Your bank or payment provider will usually give you a worse rate and may charge a fee, so real take-home is normally a little lower. Each amount page shows what happens if the rand moves R2 either way.

Example from our page jobs.randswitch.com/salary-calculator/usd-3000-a-month on 1 November 2026: at $1 = R16.67, $3 000 a month is about R50 017 gross, tax about R11 082, take-home about R38 935.

What we leave out

UIF. Employees of registered employers pay 1% of pay, capped at 1% of R17 712 a month (R177.12). Many remote workers paid by a foreign company do not pay UIF. Subtract it yourself if it applies.
Provisional tax timing. If no employer withholds PAYE for you, you still owe the tax, but you pay it through provisional tax twice a year. See our guide to remote work in South Africa.
Business expenses, capital gains tax and foreign tax already withheld.
Pension and provident funds through an employer, which follow the same 27.5% rule but are handled by your payroll.

FAQ

Is this the same as my payslip? It should be close if your only deductions are PAYE and an RA. Payslips also include UIF, pension funds, medical aid premiums and other items.

Why is my average rate lower than my bracket? Only the income above each threshold is taxed at the higher rate, and rebates reduce the total.

Do you store what I type? You do not need an account to use the calculator. Our privacy notice at randswitch.com/privacy explains what we collect.

Is this tax advice? No. It is an estimate for planning. For your own situation, speak to a registered tax practitioner or SARS.

Salary calculator: jobs.randswitch.com/salary-calculator
$3 000 a month example: jobs.randswitch.com/salary-calculator/usd-3000-a-month
What remote jobs pay: jobs.randswitch.com/salaries

Corrections

Spotted an error? Email chetty.sagie@gmail.com. We aim to fix confirmed errors within two working days and note the change on the page.

Sources

SARS, Rates of tax for individuals: www.sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/ (accessed 1 Nov 2026)
SARS, Budget Tax Guide 2026: www.sars.gov.za/wp-content/uploads/Docs/Budget/Budget2026/Budget-tax-guide-2026-online-version-for-printing.pdf (accessed 1 Nov 2026)
SARS, Guide for employers in respect of employees' tax (2027 tax year): www.sars.gov.za/guide-for-employers-in-respect-of-employees-tax-2027/ (accessed 1 Nov 2026)
SARS, Unemployment Insurance Fund: www.sars.gov.za/types-of-tax/unemployment-insurance-fund/ (accessed 1 Nov 2026)
RandSwitch Jobs salary calculator and amount pages (our own tool): jobs.randswitch.com/salary-calculator (accessed 1 Nov 2026)

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How we research, update and correct these guides: editorial policy. Information only, not financial or tax advice.