How to Use PAYE Tax Calculator SA (2026) - Complete Guide

Understanding how much PAYE (Pay As You Earn) tax is deducted from your salary helps you budget effectively and verify your employer's calculations. Our free PAYE Tax Calculator helps you calculate your monthly PAYE deduction based on your salary, age, medical aid contributions, and retirement fund contributions. This comprehensive guide explains how to use the calculator effectively and provides detailed information about PAYE calculations in 2026.

Understanding PAYE Tax

PAYE is the system where employers deduct tax from employees' salaries before payment. The amount deducted is based on your salary, tax brackets, rebates, and allowable deductions.

Components of PAYE Calculation

Monthly/Annual Salary: Your gross salary before deductions
Tax Brackets: Progressive tax rates based on income level
Rebates: Age-based tax reductions
Medical Aid Credits: Tax credits for medical aid contributions
Retirement Fund Deductions: Deductible retirement contributions

How to Use the PAYE Tax Calculator

Step 1: Access the Calculator

Navigate to our PAYE Tax Calculator tool. The calculator is free to use and requires no registration.

Step 2: Enter Salary

Enter your salary amount:

• Enter monthly or annual salary
• Use gross salary (before deductions)
• Select period (monthly or annual)

Step 3: Enter Age (Optional)

Enter your age if applicable:

• Age 65+: Qualifies for secondary rebate
• Age 75+: Qualifies for tertiary rebate
• Leave blank if under 65

Step 4: Enter Medical Aid

Enter monthly medical aid contributions:

• Enter total monthly contributions
• Used to calculate medical tax credits
• Reduces tax liability

Step 5: Enter Retirement Fund

Enter monthly retirement fund contributions:

• Pension, provident, or retirement annuity
• Deductible up to 27.5% of income or R350,000 annually
• Reduces taxable income

Step 6: Calculate PAYE

Click "Calculate PAYE" to see results. The calculator displays:

• Salary breakdown
• Retirement fund deduction
• Taxable income
• Tax liability
• Rebates applied
• Medical credits
• Monthly PAYE amount

Understanding the Results

Tax Calculation Breakdown

Salary: Your entered salary amount
Retirement Fund Deduction: Amount deducted from taxable income
Taxable Income: Income after retirement deductions
Tax Liability: Calculated tax before rebates
Rebates: Age-based tax reductions
Medical Credits: Medical aid tax credits
Annual Tax Due: Final annual tax amount
Monthly PAYE: Amount deducted monthly

Tax Brackets (2026)

Tax is calculated using progressive brackets:

• 18% on income up to R237,100
• 26% on income R237,101-R370,500
• 31% on income R370,501-R512,800
• 36% on income R512,801-R673,000
• 39% on income R673,001-R857,900
• 41% on income R857,901-R1,817,000
• 45% on income above R1,817,000

Rebates (2026)

Primary Rebate: R17,235 (all taxpayers)
Secondary Rebate: R9,444 (age 65+)
Tertiary Rebate: R3,145 (age 75+)

Tips for Using the Calculator

1. Use Gross Salary: Enter salary before any deductions
2. Include All Contributions: Enter accurate medical and retirement amounts
3. Check Age Rebates: Ensure age is entered if 65+
4. Verify Calculations: Compare with your payslip
5. Update Annually: Recalculate when tax rates change

Important Considerations

Retirement Fund Deduction Limits

Maximum Deduction: 27.5% of income or R350,000 annually (whichever is lower)
Monthly Equivalent: Divide annual limit by 12 for monthly calculations

Medical Aid Credits

Medical aid contributions qualify for tax credits, not deductions:

• Credits reduce tax liability directly
• Calculated based on contributions and dependents
• Subject to annual limits

Accuracy Disclaimer

The calculator provides estimates based on standard PAYE calculations. Actual deductions may vary based on:

• Employer calculations
• Additional income sources
• Other deductions or credits
• Tax law changes

Common Questions

Why does my calculated PAYE differ from my payslip?

Differences may occur due to:

• Additional income sources
• Other deductions not included
• Employer calculation methods
• Timing differences

How often should I recalculate?

Recalculate when:

• Your salary changes
• Tax rates are updated
• Your contributions change
• At the start of each tax year

Can I use this for annual tax calculations?

Yes, select "Annual" period and the calculator will provide annual tax calculations.

What if I have multiple income sources?

This calculator is designed for single salary calculations. Multiple income sources require more complex calculations.

Using the Calculator for Financial Planning

The PAYE Tax Calculator helps you:

• Budget Planning: Understand net take-home pay
• Tax Verification: Verify employer PAYE calculations
• Contribution Planning: Optimize retirement and medical contributions
• Financial Planning: Plan for tax obligations

Next Steps After Calculation

1. Compare with Payslip: Verify calculations match your payslip
2. Optimize Contributions: Consider maximizing retirement deductions
3. Plan Financially: Budget based on net income
4. Review Annually: Recalculate when circumstances change
5. Consult Professional: For complex tax situations

Conclusion

Our PAYE Tax Calculator simplifies the process of calculating your monthly PAYE deduction. By understanding how PAYE is calculated and using the calculator effectively, you can verify your employer's calculations and plan your finances accurately. Remember that actual deductions may vary, so always verify with your employer and consult a tax professional for complex situations.

For accurate PAYE calculations, use our PAYE Tax Calculator tool and always verify with your employer's payroll department.