PAYE is tax collected as you earn
Your employer withholds employees’ tax from your remuneration and pays it to SARS. PAYE is a collection method for income tax. Your annual assessment brings together the income, deductions and tax already paid for the year.
If you have several income sources, the tax withheld by one employer might not cover your total liability. A single-salary estimate is only a starting point.
A higher bracket does not tax all your income at that rate
South Africa uses progressive personal income tax brackets. Each higher rate applies to the portion above that bracket’s starting point. The published table combines the tax on lower portions into a base amount.
For 2026/27, a taxable annual income of R360 000 falls in the 26% band. The calculation is R44 118 plus 26% of the portion over R245 100. Subtracting the R17 820 primary rebate leaves R56 172 before any medical credits.
What to check on your payslip
Check your taxable remuneration rather than assuming your cost-to-company package is cash salary. Look for retirement contributions, medical scheme deductions and fringe benefits separately.
Use the correct tax year. A South African individual tax year runs from March to February. Ask payroll about unexplained differences and keep your IRP5 and supporting certificates for your return.
Reconcile the same period before changing an assumption
A regular R30 000 monthly salary represents R360 000 over twelve months. An annual tax estimate divided by twelve is an average; it is not automatically the withholding for a month with a bonus, a mid-year start or a payroll adjustment. Keep the period beside every number you compare.
Start a comparison with the same tax year, age category, remuneration and deductions. Then change one item at a time. If the calculator and payroll differ, ask which annualisation method, benefit or adjustment explains the gap. Keep the explanation with your payslip rather than changing a rate until the outputs happen to match.
Prepare a useful question for payroll
Write down the month concerned, taxable pay, PAYE shown, retirement treatment and whether the payment was regular or once-off. Identify the specific line you do not understand. A calculation with salary, UIF and medical deductions mixed into one unexplained difference is much harder to reconcile.
Use the calculator's breakdown and assumptions when discussing the estimate. The tool does not determine a tax directive or replace an assessment. If you report a suspected calculation bug to RandMath, use an invented example with the same pattern; you do not need to send a payslip or identity number.
Sources & further reading
Educational information, not personalised financial advice. This guide was prepared for this release. Read our editorial and corrections policy.