[{"data":1,"prerenderedAt":589},["ShallowReactive",2],{"learn-\u002Flearn\u002Fside-hustle-tax-basics":3,"related-\u002Flearn\u002Fside-hustle-tax-basics":134},{"id":4,"title":5,"body":6,"category":122,"date":123,"description":124,"extension":125,"meta":126,"navigation":127,"path":128,"readingTime":129,"seo":130,"sitemap":131,"stem":132,"__hash__":133},"learn\u002Flearn\u002Fside-hustle-tax-basics.md","Side hustle income and SARS: what you need to know",{"type":7,"value":8,"toc":113},"minimark",[9,13,18,36,39,43,50,66,73,77,88,95,99,106,110],[10,11,12],"p",{},"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.",[14,15,17],"h2",{"id":16},"_1-yes-its-taxable-all-of-it","1. Yes, it's taxable — all of it",[10,19,20,21,25,26,29,30,35],{},"There's no \"under the table\" threshold for side income. Money earned from freelancing or trading is ",[22,23,24],"strong",{},"added to your salary"," and taxed at your ",[22,27,28],{},"marginal rate"," — because your salary already used up the lower brackets and the rebate (",[31,32,34],"a",{"href":33},"\u002Flearn\u002Fhow-tax-brackets-work","how brackets work",").",[10,37,38],{},"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.)",[14,40,42],{"id":41},"_2-you-can-deduct-real-expenses","2. You can deduct real expenses",[10,44,45,46,49],{},"Side income is taxed on ",[22,47,48],{},"profit, not revenue",". Costs genuinely incurred to earn it are deductible:",[51,52,53,57,60,63],"ul",{},[54,55,56],"li",{},"Software, hosting, tools and materials",[54,58,59],{},"A fair share of data\u002Finternet used for the work",[54,61,62],{},"Travel to clients (keep a logbook)",[54,64,65],{},"Equipment — laptops and gear, written off over time",[10,67,68,69,72],{},"Two habits make this painless: a ",[22,70,71],{},"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.",[14,74,76],{"id":75},"_3-provisional-tax-paying-as-you-go","3. Provisional tax: paying as you go",[10,78,79,80,83,84,87],{},"PAYE handles tax on your salary automatically. Nobody withholds tax on side income — so SARS may classify you as a ",[22,81,82],{},"provisional taxpayer",", which just means paying your estimated tax in ",[22,85,86],{},"two instalments"," (end of August and end of February) instead of one surprise bill at filing season.",[10,89,90,91,94],{},"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: ",[22,92,93],{},"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.",[14,96,98],{"id":97},"when-it-grows","When it grows",[10,100,101,102,105],{},"Once a hustle becomes a real business, other structures exist — registering a company, ",[22,103,104],{},"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.",[14,107,109],{"id":108},"the-bottom-line","The bottom line",[10,111,112],{},"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":114,"searchDepth":115,"depth":115,"links":116},"",2,[117,118,119,120,121],{"id":16,"depth":115,"text":17},{"id":41,"depth":115,"text":42},{"id":75,"depth":115,"text":76},{"id":97,"depth":115,"text":98},{"id":108,"depth":115,"text":109},"Tax & payslip","2026-07-22","Freelance gigs, weekend work, selling online — when extra income becomes taxable, what you can deduct, and what provisional tax means.","md",{},true,"\u002Flearn\u002Fside-hustle-tax-basics","6 min read",{"title":5,"description":124},{"loc":128},"learn\u002Fside-hustle-tax-basics","nSJ1s3rTA9kU1_Z83JUrQrjJMzEh7w6MUgpc_YaLt20",[135,273,456],{"id":136,"title":137,"body":138,"category":122,"date":123,"description":265,"extension":125,"meta":266,"navigation":127,"path":267,"readingTime":268,"seo":269,"sitemap":270,"stem":271,"__hash__":272},"learn\u002Flearn\u002Fbonus-13th-cheque-tax.md","Why your bonus gets taxed so hard (it actually doesn't)",{"type":7,"value":139,"toc":258},[140,143,147,154,162,166,176,183,187,194,198,201,222,225,229,232],[10,141,142],{},"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.",[14,144,146],{"id":145},"there-is-no-bonus-tax-rate","There is no bonus tax rate",[10,148,149,150,153],{},"SARS taxes your ",[22,151,152],{},"total income for the year"," — salary, bonus, overtime, everything — using the normal tax tables. A bonus is just more income.",[10,155,156,157,161],{},"The confusion comes from ",[158,159,160],"em",{},"how PAYE is calculated in the month you receive it",".",[14,163,165],{"id":164},"the-annualisation-effect","The annualisation effect",[10,167,168,169,172,173,175],{},"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 ",[158,170,171],{},"extra"," income sits on top of your salary, so it's taxed at your ",[22,174,28],{}," from the first rand.",[10,177,178,179,182],{},"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 ",[158,180,181],{},"feels"," heavier than your usual payslip deduction because your average rate is much lower.",[14,184,186],{"id":185},"sometimes-payroll-over-withholds","Sometimes payroll over-withholds",[10,188,189,190,193],{},"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 ",[22,191,192],{},"refund when you file your tax return",". It's also the main reason many salaried people get refunds at all.",[14,195,197],{"id":196},"a-worked-example","A worked example",[10,199,200],{},"Salary R25,000\u002Fmonth (R300,000\u002Fyear), December bonus R25,000:",[51,202,203,209,215],{},[54,204,205,206],{},"Marginal rate at R300,000: ",[22,207,208],{},"26%",[54,210,211,212],{},"Tax on the bonus: about ",[22,213,214],{},"R6,500",[54,216,217,218,221],{},"You take home roughly ",[22,219,220],{},"R18,500"," of it",[10,223,224],{},"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.",[14,226,228],{"id":227},"make-the-bonus-work","Make the bonus work",[10,230,231],{},"Two things worth knowing before you spend it:",[233,234,235,246],"ol",{},[54,236,237,238,241,242,161],{},"An ",[22,239,240],{},"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 ",[31,243,245],{"href":244},"\u002Ftools\u002Fra","RA calculator",[54,247,248,249,252,253,257],{},"Unused ",[22,250,251],{},"TFSA room"," expires at the end of the tax year — the ",[31,254,256],{"href":255},"\u002Ftools\u002Ftfsa","TFSA tracker"," shows what you have left.",{"title":114,"searchDepth":115,"depth":115,"links":259},[260,261,262,263,264],{"id":145,"depth":115,"text":146},{"id":164,"depth":115,"text":165},{"id":185,"depth":115,"text":186},{"id":196,"depth":115,"text":197},{"id":227,"depth":115,"text":228},"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":137,"description":265},{"loc":267},"learn\u002Fbonus-13th-cheque-tax","Y2wIX0J6jNqTs-3TUQ1UCh6lBP07pxS2eYZ_p76gGXM",{"id":274,"title":275,"body":276,"category":122,"date":123,"description":450,"extension":125,"meta":451,"navigation":127,"path":33,"readingTime":129,"seo":452,"sitemap":453,"stem":454,"__hash__":455},"learn\u002Flearn\u002Fhow-tax-brackets-work.md","How income tax brackets actually work in South Africa",{"type":7,"value":277,"toc":443},[278,285,289,300,303,378,384,388,399,403,421,424,428,431,435],[10,279,280,281,284],{},"The most expensive tax myth in South Africa: ",[158,282,283],{},"\"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.",[14,286,288],{"id":287},"brackets-are-steps-not-switches","Brackets are steps, not switches",[10,290,291,292,295,296,299],{},"South Africa uses ",[22,293,294],{},"marginal"," tax rates. Each chunk of your income is taxed at that chunk's rate — only the rand ",[158,297,298],{},"above"," a bracket line pays the higher rate.",[10,301,302],{},"For the 2026\u002F27 tax year:",[304,305,306,319],"table",{},[307,308,309],"thead",{},[310,311,312,316],"tr",{},[313,314,315],"th",{},"Taxable income (per year)",[313,317,318],{},"Rate on that slice",[320,321,322,331,338,346,354,362,370],"tbody",{},[310,323,324,328],{},[325,326,327],"td",{},"Up to R237,100",[325,329,330],{},"18%",[310,332,333,336],{},[325,334,335],{},"R237,101 – R370,500",[325,337,208],{},[310,339,340,343],{},[325,341,342],{},"R370,501 – R512,800",[325,344,345],{},"31%",[310,347,348,351],{},[325,349,350],{},"R512,801 – R673,000",[325,352,353],{},"36%",[310,355,356,359],{},[325,357,358],{},"R673,001 – R857,900",[325,360,361],{},"39%",[310,363,364,367],{},[325,365,366],{},"R857,901 – R1,817,000",[325,368,369],{},"41%",[310,371,372,375],{},[325,373,374],{},"Above R1,817,000",[325,376,377],{},"45%",[10,379,380,381],{},"Earn R250,000? Only the R12,900 above R237,100 is taxed at 26%. Everything below is still taxed at 18%. ",[22,382,383],{},"A raise can never reduce your take-home pay.",[14,385,387],{"id":386},"the-rebate-your-tax-free-head-start","The rebate: your tax-free head start",[10,389,390,391,394,395,398],{},"Everyone under 65 gets the ",[22,392,393],{},"primary rebate of R17,235"," knocked straight off their tax bill. That's why you only start paying income tax above the ",[22,396,397],{},"tax threshold of R95,750"," a year (about R7,979\u002Fmonth).",[14,400,402],{"id":401},"your-marginal-rate-vs-your-effective-rate","Your marginal rate vs your effective rate",[51,404,405,415],{},[54,406,407,410,411,414],{},[22,408,409],{},"Marginal rate",": the rate on your ",[158,412,413],{},"next"," rand. This is what matters for decisions — like how much an RA contribution saves you.",[54,416,417,420],{},[22,418,419],{},"Effective rate",": your total tax ÷ total income. Always lower than your marginal rate.",[10,422,423],{},"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.",[14,425,427],{"id":426},"bracket-creep-the-silent-increase","Bracket creep: the silent increase",[10,429,430],{},"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.",[14,432,434],{"id":433},"see-it-on-your-own-payslip","See it on your own payslip",[10,436,437,438,442],{},"Our ",[31,439,441],{"href":440},"\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":114,"searchDepth":115,"depth":115,"links":444},[445,446,447,448,449],{"id":287,"depth":115,"text":288},{"id":386,"depth":115,"text":387},{"id":401,"depth":115,"text":402},{"id":426,"depth":115,"text":427},{"id":433,"depth":115,"text":434},"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.",{},{"title":275,"description":450},{"loc":33},"learn\u002Fhow-tax-brackets-work","e9ZuJm3KivTipYCdTA_6Wd2YjVg-5eoXD_gKiE-I-w4",{"id":457,"title":458,"body":459,"category":122,"date":123,"description":582,"extension":125,"meta":583,"navigation":127,"path":584,"readingTime":268,"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.",[14,465,467],{"id":466},"what-you-pay","What you pay",[51,469,470,480],{},[54,471,472,475,476,479],{},[22,473,474],{},"You contribute 1%"," of your salary, and ",[22,477,478],{},"your employer adds another 1%"," on your behalf.",[54,481,482,483,486,487,490],{},"Contributions are calculated on salary up to a ceiling of ",[22,484,485],{},"R17,712 per month"," — so the most that leaves your payslip is ",[22,488,489],{},"R177.12",", no matter how much you earn.",[10,492,493,494,161],{},"See it in context on the ",[31,495,441],{"href":440},[14,497,499],{"id":498},"what-it-covers","What it covers",[10,501,502],{},"UIF pays out in five situations:",[233,504,505,511,517,523,529],{},[54,506,507,510],{},[22,508,509],{},"Unemployment"," — retrenchment, dismissal, or your contract ending. (Resigning generally doesn't qualify.)",[54,512,513,516],{},[22,514,515],{},"Maternity leave"," — up to about four months, claimable even if you plan to return to work.",[54,518,519,522],{},[22,520,521],{},"Parental and adoption leave"," — shorter benefit for the other parent.",[54,524,525,528],{},[22,526,527],{},"Illness"," — when you're unable to work for an extended period and not on full pay.",[54,530,531,534],{},[22,532,533],{},"Death"," — your dependants can claim your accumulated benefit.",[14,536,538],{"id":537},"how-much-it-pays","How much it pays",[10,540,541,542,545,546,549],{},"You build up ",[22,543,544],{},"one day of credit for every four days worked",", up to a maximum of about ",[22,547,548],{},"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.",[10,551,552,553,161],{},"It won't replace your salary. It's a cushion, not a hammock — which is why an ",[31,554,556],{"href":555},"\u002Flearn\u002Femergency-fund-first","emergency fund still matters",[14,558,560],{"id":559},"how-to-claim","How to claim",[10,562,563,564,567],{},"Claims go through ",[22,565,566],{},"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.",[14,569,571],{"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":114,"searchDepth":115,"depth":115,"links":576},[577,578,579,580,581],{"id":466,"depth":115,"text":467},{"id":498,"depth":115,"text":499},{"id":537,"depth":115,"text":538},{"id":559,"depth":115,"text":560},{"id":570,"depth":115,"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",1785421695905]