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Reading tax tables – Example

Various amounts will make up an Individual’s taxable income (this would have been explained in previous videos)

Let’s say Steph has a final taxable income of R 430 000 for the 2022 year of assessment

Using the table below we will work out the tax due

Using the 2021/2022 Tax year table below , you will go to the Taxable Income bracket where the amount falls into (highlighted below)

  • R 430 000 – R 337 800 = R 92 200
  • R 92 200 x 31% = R 28 582
  • R 28 582 + R 70 532 = R 99 114

You will then use the Rebate table and deduct the amount applicable per age category

Steph is under 65 years of age therefore:

  • R 99 114 – R 15 714 = R 83 400 tax due p.a
2021 / 2022 Tax Year:
Taxable Income (R)Rates of Tax
0 – 216,20018% of taxable income
216,201 – 337,80038,916 + 26% of taxable income above 216 200
337,801 – 467,50070,532 + 31% of taxable income above 337,800
467,501 – 613,600110,739 + 36% of taxable income above 467,500
613,601 – 782,200163,335 + 39% of taxable income above 613,600
782,201 – 1,656,600229,089 + 41% of taxable income above 782,200
1,656,601 and above587,593 + 45% of taxable income above 1,656,600
RebatesValueTax Threshold
Below age 65R15,714R87,300
Age 65 to below 75R8,613R135,150
Age 75 and overR2,871R151,100

If she contributed towards a medical scheme, then she would be able to claim a medical tax credit over and above the normal rebate used above.

Tax is due annually to SARS, but I mention monthly in the video below, as if you are not paying PAYE, it is helpful to know what range of tax will be due so you can perhaps keep this aside or plan for this, for when you need to submit your tax return.