All income tax calculators are based on the tax tables from SARS for the specific period of taxation and this is what is used to work out your tax liability, that is the amount of money you need to pay to SARS.
The formula to calculate your base tax liability is simple:
Base Tax Liability = (Total annual income x tax bracket percent ) + additional tax payment if applicable – tax rebate
Therefore to calculate your tax liability using this formula, you need to know your total annual income, the percentage tax charged on the tax bracket you fall under, whether there is an additional payment on this tax bracket and finally the tax rebate you quality for.
To calculate your total annual income, multiply the amount you earn in a month by 12, e.g. if you earn R20 000 per month, your total annual income will be R20 000 x 12 = R240 000
To find your tax bracket percentage, refer to the tax tables below. If you earn an annual income of R240 000, you will fall into the tax bracket of R195 851 – R305 850 which carries with it a tax percentage of 26% and an additional tax payment of R35 253.
If you consult the tax rebate table below, depending on your age you will find the amount that you can deduct from your total tax. e.g. if you are under 65 and earn R240 000 per year, you will quality for a rebate of R14 220.
Therefore your base liability is: (R240 000 x 0.26) + R35 253 – R14 220 = R83 433
This means that the tax you would owe each month over a year would be R83 433 / 12 = R6952.75
Remember that this is your base tax liability. The amount of tax you are liable for can be reduced further depending on how much you have spent on medical aid, RA contributions and more. To work out your final tax liability, contact Dirmeik Consulting today, we are here to handle all of your tax requirements.
Lastly, note the tax thresholds tables below. If you earn less than the amounts listed there based on your age, you are likely not eligible to pay any tax.
Personal Income Tax Tables 2019
The taxable income brackets for the period 2019 to 2020 have not been adjusted to match inflation and have therefore not changed since last year. The tax thresholds have however been adjusted slightly which means that you need to earn slightly more than last year to be eligible to pay tax.
Income tax brackets for the period 1 March 2019 to 29 February 2019
| Taxable Income | Rates of Tax |
|---|---|
| R0 – R195 850 | + 18% of each R1 |
| R195 851 – R305 850 | R35 253 + 26% of the amount above R195 850 |
| R305 851 – R423 300 | R63 853 + 31% of the amount above R305 850 |
| R423 301 – R555 600 | R100 263 + 36% of the amount above R423 300 |
| R555 601 – R708 310 | R147 891 + 39% of the amount above R555 600 |
| R708 311 – R1 500 000 | R207 448 + 41% of the amount above R 708 310 |
| R1 500 001 and above | R532 041 + 45% of the amount above R 1 500 000 |
Tax Rebates 2019-2020
| Rebate | |
|---|---|
| Primary | R14 220 |
| Secondary (Persons 65 and older) | R7 794 |
| Tertiary (Persons 75 and older) | R2 601 |
Tax Thresholds 2019 – 2020
| Age | Tax Threshold |
|---|---|
| Below age 65 | R79 000 |
| Age 65 to below 75 | R122 300 |
| Age 75 and over | R136 750 |
Comparative Tax Rates
| Rates of Tax | 2018 | 2019 | 2020 |
|---|---|---|---|
| NATURAL PERSONS | |||
| • Maximum marginal rate | 45% | 45% | 45% |
| • Reached at a taxable income | 1500 000 | 1 500 000 | 1 500 000 |
| • Minimum rate | 18% | 18% | 18% |
| • Up to taxable income of | 189 880 | 195 850 | 195 850 |
| • CGT inclusion rate | 40% | 40% | 40% |
| COMPANIES AND CC’s | |||
| • Normal tax rate | 28% | 28% | 28% |
| • Dividends Tax | 20% | 20% | 20% |
| • CGT inclusion rate | 80% | 80% | 80% |
| TRUSTS (other than special trusts) | |||
| • Flat rate | 45% | 45% | 45% |
| • CGT inclusion rate | 80% | 80% | 80% |
| SUNDRY | |||
| • Donations Tax | 20% | 20%-25%* | 20%-25%* |
| • Estate Duty | 20% | 20%-25%* | 20%-25%* |
| • VAT | 14% | 15% | 15% |
| SMALL BUSINESS CORPORATIONS | |||
| • Maximum marginal rate | 28% | 28% | 28% |
| • Reached at a taxable income | 550 000 | 550 000 | 550 000 |
| • Minimum rate | 0% | 0% | 0% |
| • Up to taxable income of | 75 750 | 78 150 | 79 000 |
| MICRO BUSINESS | |||
| • Max Rate of Tax | 3% | 3% | 3% |
| • On Turnover of | 750 000 | 750 000 | 750 000 |
| • Minimum Rate | 0% | 0% | 0% |
| • Up to taxable income of | 335 000 | 335 000 | 335 000 |
* Estates and cumulative donations in excess of R30 million will be taxed at 25%
Annual Income Tax Tables
The tables above will allow you to calculate your tax liability for the period March 2019 to February 2020. For previous years, access the appropriate tax tables below:
Download tax tables
If you would like to download these tax tables as well as other useful tax info for this tax period in a handy pocket guide, access the following link: Download the Free Tax Guide 2019/2020.
Need help calculating your tax liability?
Tax can be confusing and if the numbers are not making sense to you, why not reach out and allow us to assist you with your tax liability. Our service offering is really ‘more than just numbers’ as we also provide you with sound advice backed by friendly, efficient service.
Call us on:
Johannesburg: 010 007 3026,
Cape Town: 021 421 4444,
Durban: 031 007 0881
