Personal Income Tax Brackets and Payroll Planning for Employers

Current Brackets (Hypothetical Example)

• Up to R237,100: 18%
• R237,101 – R370,500: 26%
• R370,501 – R512,800: 31%
• R512,801 – R673,000: 36%
• R673,001 – R857,900: 39%
• R857,901 – R1,817,000: 41%
• Above R1,817,000: 45%

Payroll Planning Tips

• Bracket Creep Awareness: As salaries increase with inflation, employees may move into higher tax brackets. Adjust net salary projections accordingly.
• Fringe Benefits: Use tax‑efficient fringe benefits (medical aid, pensions, travel allowances) to help employees manage tax burdens.
• Annual Reviews: Update payroll software with new tax tables each year.
• Communication: Provide employees with personal tax breakdowns to help them understand deductions.
• Payroll Tax Training: Train HR teams to stay abreast of tax changes, including skills development levy thresholds and UIF adjustments.