✔ Complete income tax calculations and salary example for R297,000.00 salary per annum
This income tax calculation for an individual earning R297,000.00 per annum is provided to allow you to compare salaries and understand the tax and payroll deductions that are applied during the 2018/19 tax year.
The R297,000.00 salary income tax calculation uses default setting to illustrate Medical, Pension and PAYE deductions. You can also produce your own bespoke income tax calculation by entering your own income and expenditure for 2018/19 in the South Africa Income Tax Calculator.
This salary and tax examples provides an overview of salary deductions followed by the details of the calculations and explanation of how income tax is calculated and deducted from your salary. Our aim is to make the tax calculation transparent so you can clearly understand how your tax, salary deductions and contributions are calculated.
| Yearly | %1 | Salary/Tax Component |
|---|---|---|
| R297,000.00 | 100.00% | Employment Income |
| R297,000.00 | 100.00% | Gross Income |
| R81,675.00 | 27.50% | Retirement Funds |
| R297,000.00 | 100.00% | Taxable Income |
| R13,635.00 | 4.59% | Tax Rebate |
| R48,394.20 | 16.29% | Income Tax Due |
| R48,394.20 | 16.29% | Total Deductions |
| R248,605.80 | 83.71% | Net Pay |
| R2,970.00 | 1.00% | Employer Contribution to Risk Benefits |
| R4,455.00 | 1.50% | Employer Contribution to Retirement Funds |
| R304,425.00 | 102.50% | Salary Package [Cost of Employee] |
1 Percentage expressed in relation to Gross Income [R297,000.00].
Pay As You Earn (PAYE) is calculation based on the amount you earn. PAYE is tax on a threshold basis with different rates applied depending on your income. The table below shows a PAYE calculation for a R297,000.00 per annum salary.
| R297,000.00 | Taxable Income in 2018 | |
| - | R0.00 | Taxable amount due in within R0.00 - R189,880.00 income tax threshold (18%) |
| - | R27,851.20 | Taxable amount due in within R189,880.00 - R296,540.00 income tax threshold (26%) |
| = | R62,029.20 | Income tax calculation within thresholds in 2018 |
| - | R13,635.00 | Income Tax Rebate in 2018 |
| = | R48,394.20 | Income tax due in 2018 |
The example below shows how medical tax credits and deductions are calculated in 2018/19 tax year
| R3,636.00 | Medical Tax Credit for taxpayer and first dependant in 2018 | |
| = | R2,448.00 | Medical Tax Credit in 2018 |
| R0.00 | Medical Aid Contributions in 2018 | |
| - | R9,792.00 | 4 times Medical Tax Credit in 2018 |
| = | R0.00 | Transposable Medical Aid Credit in 2018 |
| + | R0.00 | Medical Out of Pocket Expenses in 2018 |
| = | R0.00 | Transposable Medical Aid Credit in 2018 |
| - | R22,275.00 | 7.5% of taxable income |
| = | R0.00 | Transposable Medical Aid Credit in 2018 |
| ÷ | 4 | Compute amount |
| = | R0.00 | Medical Out of Pocket Expenses Credit in 2018 |
Note: Medical tax credit amounts can vary depending on the number of months that a taxpayer and dependants are members of a medical fund.
Employers payroll costs are not limited to the core annual salary, in this instance R297,000.00 per annum. Employers also have additional tax and contributions costs including medical contributions and pension contributions. The calculation below illustrates the total cost of employment for an individual employee earning R297,000.00 per annum
| R297,000.00 | Annual Salary | |
| x | 1% | Employer Contribution to Risk Benefits % |
| = | R2,970.00 | Employer Contribution to Risk Benefits in 2018 |
| R297,000.00 | Annual Salary | |
| x | 1.5% | Employer Contribution to Retirement Funds % |
| = | R4,455.00 | Employer Contribution to Retirement Funds in 2018 |
| R297,000.00 | Annual Salary | |
| + | R2,970.00 | Employer Contribution to Risk Benefits in 2018 |
| + | R4,455.00 | Employer Contribution to Retirement Funds in 2018 |
| = | R304,425.00 | Employer Total Cost of Employment in 2018 |
Disclaimer: whilst we aim for 100% accuracy in our payroll, tax and salary calculations we make no guarantee as to the accuracy of the information herein. This tool is provided free of charge to support those who are looking at alternate salaries or to improve the knowledge and understanding of income tax in South Africa, it is not a 100% accurate tax return or tax refund calculation. If however you do spot a mistake in our calculations, the rates or thresholds used, please get in touch. Whilst we make no guarantees on the accuracy on the tax calculations, we do aim to be 100% accurate. This position allows us to support our community without any unnecessary grumpiness or actions from legal folk.