PAYE calculator 2026/27
The tax your employer must take off your salary every month, on the SARS tables for 1 March 2026 to 28 February 2027. Add your medical aid and retirement contributions to see the real figure, and the employer side if you run the payroll.
How PAYE is worked out
PAYE stands for Pay As You Earn. It is not a separate tax; it is your normal income tax, collected in advance by your employer every month so that very little is owed when you file your return. The employer takes your monthly pay, works out the tax on the whole year, subtracts the rebates and medical credits you qualify for, and deducts one twelfth each month. It is paid to SARS on an EMP201 by the 7th of the following month.
Three things lower it legally: being 65 or older (bigger rebates), medical scheme membership paid through payroll (a fixed monthly credit), and retirement fund contributions (deductible up to 27,5 percent of your pay, capped at R430 000 a year). Everything else on the payslip, from garnishees to staff loans, comes off after tax.
The 2026/27 tax brackets
Tax year 1 March 2026 to 28 February 2027. Taxable income is your annual pay after retirement deductions.
| Taxable income a year | Tax |
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Rebates come off the tax: R17 820 for everyone, a further R9 765 from age 65 and another R3 249 from 75. That is why the tax threshold is R99 000 a year under 65, R153 250 from 65 and R171 300 from 75.
Frequently asked questions
How is PAYE calculated in South Africa?
Your employer works out the tax on your annual income using the SARS brackets for the year, subtracts the rebates for your age and any medical scheme tax credit, then divides what is left by twelve. For the 2026/27 year the first R245 100 is taxed at 18 percent and the primary rebate is R17 820, so anyone earning under R99 000 a year pays no PAYE at all.
How much PAYE do I pay on R20 000 a month?
On R20 000 a month (R240 000 a year) in 2026/27, with no medical aid or retirement contributions, PAYE is R2 115 a month for someone under 65: 18 percent of R240 000 is R43 200, less the R17 820 rebate, is R25 380 a year. UIF adds R177,12, so take home is about R17 708.
What is the tax threshold for 2026/27?
R99 000 a year (R8 250 a month) if you are under 65, R153 250 from 65 and R171 300 from 75. Earn less than that and no PAYE is due, although UIF is still deducted.
Does medical aid reduce my PAYE?
Yes. The medical scheme fees tax credit for 2026/27 is R376 a month for the main member, R376 for the first dependant and R254 for each further dependant, and your employer takes it off your monthly PAYE if the scheme is paid through payroll.
Does a retirement contribution reduce PAYE?
Yes. Contributions to a pension, provident or retirement annuity fund are deductible up to 27,5 percent of your remuneration, capped at R430 000 a year from 1 March 2026. The deduction comes off before tax is worked out, so every rand you contribute costs you less than a rand in take home pay.
What does an employee cost the employer beyond the salary?
The employer adds its own UIF contribution of 1 percent (capped at R177,12 a month) and, once total annual payroll passes R500 000, a skills development levy of 1 percent of salary. The PAYE itself is the employee's money, deducted and paid over to SARS by the 7th of the following month on an EMP201.
Hiring for the first time?
You must register as an employer for PAYE, UIF and SDL with SARS before the first payroll. We do the registration for a fixed R890, EMP101 completed and eFiling linked.
PAYE registration, R890Tax tables change every February
When the brackets, rebates or UIF ceiling move, your PAYE moves with them. We send the new numbers when they land.
Keep exploring
Based on the SARS rates of tax for individuals, medical tax credit rates and the section 11F retirement deduction for the 2027 tax year (1 March 2026 to 28 February 2027), sars.gov.za, checked 1 September 2026; UIF ceiling R17 712 a month; SDL exemption R500 000 annual payroll. Estimate only. Your employer's payroll may annualise differently for irregular pay, bonuses or part years, and SARS assesses the actual tax on your return.