[{"data":1,"prerenderedAt":589},["ShallowReactive",2],{"learn-\u002Flearn\u002Fhow-tax-brackets-work":3,"related-\u002Flearn\u002Fhow-tax-brackets-work":203},{"id":4,"title":5,"body":6,"category":191,"date":192,"description":193,"extension":194,"meta":195,"navigation":196,"path":197,"readingTime":198,"seo":199,"sitemap":200,"stem":201,"__hash__":202},"learn\u002Flearn\u002Fhow-tax-brackets-work.md","How income tax brackets actually work in South Africa",{"type":7,"value":8,"toc":182},"minimark",[9,18,23,35,38,114,120,124,135,139,159,162,166,169,173],[10,11,12,13,17],"p",{},"The most expensive tax myth in South Africa: ",[14,15,16],"em",{},"\"If I get a raise into the next bracket, I'll take home less.\""," It's wrong, and understanding why will make every payslip and bonus make sense.",[19,20,22],"h2",{"id":21},"brackets-are-steps-not-switches","Brackets are steps, not switches",[10,24,25,26,30,31,34],{},"South Africa uses ",[27,28,29],"strong",{},"marginal"," tax rates. Each chunk of your income is taxed at that chunk's rate — only the rand ",[14,32,33],{},"above"," a bracket line pays the higher rate.",[10,36,37],{},"For the 2026\u002F27 tax year:",[39,40,41,54],"table",{},[42,43,44],"thead",{},[45,46,47,51],"tr",{},[48,49,50],"th",{},"Taxable income (per year)",[48,52,53],{},"Rate on that slice",[55,56,57,66,74,82,90,98,106],"tbody",{},[45,58,59,63],{},[60,61,62],"td",{},"Up to R237,100",[60,64,65],{},"18%",[45,67,68,71],{},[60,69,70],{},"R237,101 – R370,500",[60,72,73],{},"26%",[45,75,76,79],{},[60,77,78],{},"R370,501 – R512,800",[60,80,81],{},"31%",[45,83,84,87],{},[60,85,86],{},"R512,801 – R673,000",[60,88,89],{},"36%",[45,91,92,95],{},[60,93,94],{},"R673,001 – R857,900",[60,96,97],{},"39%",[45,99,100,103],{},[60,101,102],{},"R857,901 – R1,817,000",[60,104,105],{},"41%",[45,107,108,111],{},[60,109,110],{},"Above R1,817,000",[60,112,113],{},"45%",[10,115,116,117],{},"Earn R250,000? Only the R12,900 above R237,100 is taxed at 26%. Everything below is still taxed at 18%. ",[27,118,119],{},"A raise can never reduce your take-home pay.",[19,121,123],{"id":122},"the-rebate-your-tax-free-head-start","The rebate: your tax-free head start",[10,125,126,127,130,131,134],{},"Everyone under 65 gets the ",[27,128,129],{},"primary rebate of R17,235"," knocked straight off their tax bill. That's why you only start paying income tax above the ",[27,132,133],{},"tax threshold of R95,750"," a year (about R7,979\u002Fmonth).",[19,136,138],{"id":137},"your-marginal-rate-vs-your-effective-rate","Your marginal rate vs your effective rate",[140,141,142,153],"ul",{},[143,144,145,148,149,152],"li",{},[27,146,147],{},"Marginal rate",": the rate on your ",[14,150,151],{},"next"," rand. This is what matters for decisions — like how much an RA contribution saves you.",[143,154,155,158],{},[27,156,157],{},"Effective rate",": your total tax ÷ total income. Always lower than your marginal rate.",[10,160,161],{},"Someone on R400,000 has a 31% marginal rate but an effective rate around 19%. When people say \"I pay 31% tax\", they usually don't.",[19,163,165],{"id":164},"bracket-creep-the-silent-increase","Bracket creep: the silent increase",[10,167,168],{},"The bracket lines above haven't moved since 2023\u002F24. When brackets don't rise with inflation, your inflationary raise pushes more of your income into higher slices — a tax increase nobody announced. It's why your raise can feel smaller than the percentage suggested.",[19,170,172],{"id":171},"see-it-on-your-own-payslip","See it on your own payslip",[10,174,175,176,181],{},"Our ",[177,178,180],"a",{"href":179},"\u002Ftools\u002Fpayslip","payslip decoder"," applies these exact tables to your salary and shows the tax on each slice, plus UIF and medical credits, line by line.",{"title":183,"searchDepth":184,"depth":184,"links":185},"",2,[186,187,188,189,190],{"id":21,"depth":184,"text":22},{"id":122,"depth":184,"text":123},{"id":137,"depth":184,"text":138},{"id":164,"depth":184,"text":165},{"id":171,"depth":184,"text":172},"Tax & payslip","2026-07-22","No, moving into a higher bracket doesn't mean all your money is taxed more. How marginal rates, rebates and the tax threshold really work.","md",{},true,"\u002Flearn\u002Fhow-tax-brackets-work","6 min read",{"title":5,"description":193},{"loc":197},"learn\u002Fhow-tax-brackets-work","e9ZuJm3KivTipYCdTA_6Wd2YjVg-5eoXD_gKiE-I-w4",[204,341,456],{"id":205,"title":206,"body":207,"category":191,"date":192,"description":333,"extension":194,"meta":334,"navigation":196,"path":335,"readingTime":336,"seo":337,"sitemap":338,"stem":339,"__hash__":340},"learn\u002Flearn\u002Fbonus-13th-cheque-tax.md","Why your bonus gets taxed so hard (it actually doesn't)",{"type":7,"value":208,"toc":326},[209,212,216,223,230,234,245,252,256,263,267,270,290,293,297,300],[10,210,211],{},"December arrives, your 13th cheque lands, and roughly a third of it is gone. Cue the annual myth: \"bonuses are taxed at a higher rate.\" They aren't. Here's what's actually happening.",[19,213,215],{"id":214},"there-is-no-bonus-tax-rate","There is no bonus tax rate",[10,217,218,219,222],{},"SARS taxes your ",[27,220,221],{},"total income for the year"," — salary, bonus, overtime, everything — using the normal tax tables. A bonus is just more income.",[10,224,225,226,229],{},"The confusion comes from ",[14,227,228],{},"how PAYE is calculated in the month you receive it",".",[19,231,233],{"id":232},"the-annualisation-effect","The annualisation effect",[10,235,236,237,240,241,244],{},"Each month, payroll estimates your annual income and withholds one month's share of the annual tax. When a bonus lands, that month's income spikes — and the ",[14,238,239],{},"extra"," income sits on top of your salary, so it's taxed at your ",[27,242,243],{},"marginal rate"," from the first rand.",[10,246,247,248,251],{},"Your normal salary enjoys the lower brackets and the rebate. The bonus doesn't get to reuse them — they're already used. So if your marginal rate is 26%, expect roughly 26% of the bonus to go to PAYE. It ",[14,249,250],{},"feels"," heavier than your usual payslip deduction because your average rate is much lower.",[19,253,255],{"id":254},"sometimes-payroll-over-withholds","Sometimes payroll over-withholds",[10,257,258,259,262],{},"If your employer taxes the bonus by annualising it (treating the spike as if you earn that much every month), too much PAYE can be withheld. That's not money lost — it comes back as a ",[27,260,261],{},"refund when you file your tax return",". It's also the main reason many salaried people get refunds at all.",[19,264,266],{"id":265},"a-worked-example","A worked example",[10,268,269],{},"Salary R25,000\u002Fmonth (R300,000\u002Fyear), December bonus R25,000:",[140,271,272,277,283],{},[143,273,274,275],{},"Marginal rate at R300,000: ",[27,276,73],{},[143,278,279,280],{},"Tax on the bonus: about ",[27,281,282],{},"R6,500",[143,284,285,286,289],{},"You take home roughly ",[27,287,288],{},"R18,500"," of it",[10,291,292],{},"Meanwhile your regular monthly PAYE is about R3,367 — an effective rate closer to 13%. The bonus didn't get punished; it just didn't get the head start.",[19,294,296],{"id":295},"make-the-bonus-work","Make the bonus work",[10,298,299],{},"Two things worth knowing before you spend it:",[301,302,303,314],"ol",{},[143,304,305,306,309,310,229],{},"An ",[27,307,308],{},"RA contribution"," before the end of February is deducted at that same marginal rate — a R10,000 top-up costs a 26% taxpayer only R7,400 after the refund. Numbers in the ",[177,311,313],{"href":312},"\u002Ftools\u002Fra","RA calculator",[143,315,316,317,320,321,325],{},"Unused ",[27,318,319],{},"TFSA room"," expires at the end of the tax year — the ",[177,322,324],{"href":323},"\u002Ftools\u002Ftfsa","TFSA tracker"," shows what you have left.",{"title":183,"searchDepth":184,"depth":184,"links":327},[328,329,330,331,332],{"id":214,"depth":184,"text":215},{"id":232,"depth":184,"text":233},{"id":254,"depth":184,"text":255},{"id":265,"depth":184,"text":266},{"id":295,"depth":184,"text":296},"There's no special 'bonus tax' in South Africa. Here's why your 13th cheque looks half-eaten, and why some of it often comes back at filing season.",{},"\u002Flearn\u002Fbonus-13th-cheque-tax","5 min read",{"title":206,"description":333},{"loc":335},"learn\u002Fbonus-13th-cheque-tax","Y2wIX0J6jNqTs-3TUQ1UCh6lBP07pxS2eYZ_p76gGXM",{"id":342,"title":343,"body":344,"category":191,"date":192,"description":449,"extension":194,"meta":450,"navigation":196,"path":451,"readingTime":198,"seo":452,"sitemap":453,"stem":454,"__hash__":455},"learn\u002Flearn\u002Fside-hustle-tax-basics.md","Side hustle income and SARS: what you need to know",{"type":7,"value":345,"toc":442},[346,349,353,367,370,374,381,395,402,406,417,424,428,435,439],[10,347,348],{},"Design work on weekends, tutoring, a resale hustle, freelance code — extra income is normal now. What's less known: SARS's rules for it. The good news is they're manageable if you know three things.",[19,350,352],{"id":351},"_1-yes-its-taxable-all-of-it","1. Yes, it's taxable — all of it",[10,354,355,356,359,360,362,363,366],{},"There's no \"under the table\" threshold for side income. Money earned from freelancing or trading is ",[27,357,358],{},"added to your salary"," and taxed at your ",[27,361,243],{}," — because your salary already used up the lower brackets and the rebate (",[177,364,365],{"href":197},"how brackets work",").",[10,368,369],{},"Earn R300,000 at your job and R30,000 on the side? That R30,000 is taxed at 26% — roughly R7,800. Price your side work knowing SARS is a silent partner. (Occasional sales of personal stuff — your old couch — aren't income. A pattern of buying-to-resell is.)",[19,371,373],{"id":372},"_2-you-can-deduct-real-expenses","2. You can deduct real expenses",[10,375,376,377,380],{},"Side income is taxed on ",[27,378,379],{},"profit, not revenue",". Costs genuinely incurred to earn it are deductible:",[140,382,383,386,389,392],{},[143,384,385],{},"Software, hosting, tools and materials",[143,387,388],{},"A fair share of data\u002Finternet used for the work",[143,390,391],{},"Travel to clients (keep a logbook)",[143,393,394],{},"Equipment — laptops and gear, written off over time",[10,396,397,398,401],{},"Two habits make this painless: a ",[27,399,400],{},"separate bank account"," for hustle money, and a folder (even just photos) of every invoice and receipt. Reconstructing a year of expenses in July is misery; capturing them weekly is nothing.",[19,403,405],{"id":404},"_3-provisional-tax-paying-as-you-go","3. Provisional tax: paying as you go",[10,407,408,409,412,413,416],{},"PAYE handles tax on your salary automatically. Nobody withholds tax on side income — so SARS may classify you as a ",[27,410,411],{},"provisional taxpayer",", which just means paying your estimated tax in ",[27,414,415],{},"two instalments"," (end of August and end of February) instead of one surprise bill at filing season.",[10,418,419,420,423],{},"It's a payment schedule, not an extra tax. The real risk is spending your gross side income and meeting February with nothing saved. The fix: ",[27,421,422],{},"move your marginal-rate percentage of every side payment into a separate savings pocket the day it lands",". If it turns out you over-saved, that's a bonus, not a loss.",[19,425,427],{"id":426},"when-it-grows","When it grows",[10,429,430,431,434],{},"Once a hustle becomes a real business, other structures exist — registering a company, ",[27,432,433],{},"turnover tax"," for small businesses (a simplified flat-rate system for turnover under R1 million), and VAT registration once turnover crosses R1 million. Those are good problems, and worth professional advice when you get there.",[19,436,438],{"id":437},"the-bottom-line","The bottom line",[10,440,441],{},"Declare it, deduct honestly, and save the tax as you earn. A side hustle that's clean with SARS is an asset; one that isn't is a liability with interest.",{"title":183,"searchDepth":184,"depth":184,"links":443},[444,445,446,447,448],{"id":351,"depth":184,"text":352},{"id":372,"depth":184,"text":373},{"id":404,"depth":184,"text":405},{"id":426,"depth":184,"text":427},{"id":437,"depth":184,"text":438},"Freelance gigs, weekend work, selling online — when extra income becomes taxable, what you can deduct, and what provisional tax means.",{},"\u002Flearn\u002Fside-hustle-tax-basics",{"title":343,"description":449},{"loc":451},"learn\u002Fside-hustle-tax-basics","nSJ1s3rTA9kU1_Z83JUrQrjJMzEh7w6MUgpc_YaLt20",{"id":457,"title":458,"body":459,"category":191,"date":192,"description":582,"extension":194,"meta":583,"navigation":196,"path":584,"readingTime":336,"seo":585,"sitemap":586,"stem":587,"__hash__":588},"learn\u002Flearn\u002Fuif-explained.md","UIF: the deduction you ignore until you need it",{"type":7,"value":460,"toc":575},[461,464,468,491,496,500,503,535,539,550,557,561,568,572],[10,462,463],{},"Every payslip, 1% quietly disappears to the Unemployment Insurance Fund. Most people can't say what it buys. It's real insurance — and knowing the rules matters most in the exact moments you're too stressed to learn them.",[19,465,467],{"id":466},"what-you-pay","What you pay",[140,469,470,480],{},[143,471,472,475,476,479],{},[27,473,474],{},"You contribute 1%"," of your salary, and ",[27,477,478],{},"your employer adds another 1%"," on your behalf.",[143,481,482,483,486,487,490],{},"Contributions are calculated on salary up to a ceiling of ",[27,484,485],{},"R17,712 per month"," — so the most that leaves your payslip is ",[27,488,489],{},"R177.12",", no matter how much you earn.",[10,492,493,494,229],{},"See it in context on the ",[177,495,180],{"href":179},[19,497,499],{"id":498},"what-it-covers","What it covers",[10,501,502],{},"UIF pays out in five situations:",[301,504,505,511,517,523,529],{},[143,506,507,510],{},[27,508,509],{},"Unemployment"," — retrenchment, dismissal, or your contract ending. (Resigning generally doesn't qualify.)",[143,512,513,516],{},[27,514,515],{},"Maternity leave"," — up to about four months, claimable even if you plan to return to work.",[143,518,519,522],{},[27,520,521],{},"Parental and adoption leave"," — shorter benefit for the other parent.",[143,524,525,528],{},[27,526,527],{},"Illness"," — when you're unable to work for an extended period and not on full pay.",[143,530,531,534],{},[27,532,533],{},"Death"," — your dependants can claim your accumulated benefit.",[19,536,538],{"id":537},"how-much-it-pays","How much it pays",[10,540,541,542,545,546,549],{},"You build up ",[27,543,544],{},"one day of credit for every four days worked",", up to a maximum of about ",[27,547,548],{},"365 days"," of benefits. The benefit rate slides from roughly 60% of earnings for low earners down to around 38% for higher earners, calculated on the capped salary — so the ceiling limits payouts too.",[10,551,552,553,229],{},"It won't replace your salary. It's a cushion, not a hammock — which is why an ",[177,554,556],{"href":555},"\u002Flearn\u002Femergency-fund-first","emergency fund still matters",[19,558,560],{"id":559},"how-to-claim","How to claim",[10,562,563,564,567],{},"Claims go through ",[27,565,566],{},"uFiling"," (ufiling.labour.gov.za) or a Department of Labour office. You'll need your ID, proof of banking, and a UI-19 form from your employer. Claim as soon as possible — there are time limits, and processing can take weeks.",[19,569,571],{"id":570},"the-catch-to-check-now","The catch to check now",[10,573,574],{},"Your employer is legally required to register you and pay contributions over. Some don't. Check that UIF appears on your payslip and, if you ever leave, insist on the UI-19 — chasing paperwork from a former employer is much harder than checking today.",{"title":183,"searchDepth":184,"depth":184,"links":576},[577,578,579,580,581],{"id":466,"depth":184,"text":467},{"id":498,"depth":184,"text":499},{"id":537,"depth":184,"text":538},{"id":559,"depth":184,"text":560},{"id":570,"depth":184,"text":571},"That 1% on your payslip is insurance against job loss, illness and maternity leave. What UIF covers, what it pays, and how to claim.",{},"\u002Flearn\u002Fuif-explained",{"title":458,"description":582},{"loc":584},"learn\u002Fuif-explained","B0kCkTC2hcI3OdRhMnaNl0jkb1VM5L4VVvQdNnaWge8",1785421695887]