The Taxberg
R 205,703
Net pay
R 4,185
Tax the employer pays
R 34,297
Tax you pay
Total tax paid
R 38,481
Did you know your employer also pays tax on your salary? It costs the employer R 4,185 to pay you R 240,000. In other words, every time you spend R 10 of your hard-earned money, R 1.60 goes to the government.
Real tax rate
So, with you and the employer both paying tax, what used to be a 14.3% tax rate now rises to 15.8%, meaning your real tax rate is actually 1.5% higher than what it seemed at first.