Question 1

What is the tax-free threshold in South Africa for 2025/2026?

Accepted Answer

For the 2025/2026 tax year, the tax-free threshold is R95,750 per year (approximately R7,979 per month) for individuals under 65. For those aged 65-74, it's R148,217, and for those 75 and older, it's R165,689. If your annual taxable income is below these thresholds, you won't pay any income tax.

Question 2

How is UIF calculated on my salary?

Accepted Answer

UIF is calculated at 1% of your gross monthly salary, up to a maximum ceiling of R17,712 per month. This means the maximum UIF deduction is R177.12 per month. Your employer also contributes an additional 1% on your behalf, bringing the total UIF contribution to 2%.

Question 3

Are retirement annuity contributions tax-deductible?

Accepted Answer

Yes, RA contributions are tax-deductible up to 27.5% of your taxable income or remuneration (whichever is higher), subject to an annual cap of R350,000. This deduction reduces your taxable income, which means you pay less PAYE tax. The tax saving depends on your marginal tax rate.

Question 4

What are medical aid tax credits for 2025/2026?

Accepted Answer

For the 2025/2026 tax year, medical aid tax credits are R364 per month for the main member and the first dependant, and R246 per month for each additional dependant. These are credits (not deductions), meaning they reduce your tax liability directly rather than reducing your taxable income.

Question 5

How accurate is this PAYE calculator?

Accepted Answer

This calculator uses the official 2025/2026 SARS tax tables, rebates, and thresholds. It provides a close estimate of your monthly PAYE deduction. However, actual deductions may vary slightly based on your employer's payroll system, additional benefits, bonus payments, or other factors not captured here. For an exact figure, consult your payslip or a tax professional.

Question 6

What's the difference between PAYE and income tax?

Accepted Answer

PAYE and income tax are essentially the same thing — PAYE is simply the method of collecting income tax. 'Pay As You Earn' means your employer deducts estimated income tax from each paycheck throughout the year, rather than you paying a lump sum at year-end. When you file your annual tax return, SARS reconciles what was deducted via PAYE against your actual tax liability.

Question 7

Do I need to submit a tax return if I only earn a salary?

Accepted Answer

If you earn only one source of income (salary) from a single employer, and your total remuneration for the year does not exceed R500,000, you may not need to submit a tax return. However, if you have additional income, want to claim deductions (like medical expenses or home office costs), or received interest income above R23,800, you should submit a return.

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