Do your tax with TaxTim and WIN R10,000  T&C's apply
How do you currently do your tax?
SARS eFiling Tax Practitioner Auto-assessment New to tax


How to calculate Tax on Overtime



Question from Kelly:

How do you calculate tax on overtime?
Does the overtime put you in a higher bracket (pay higher tax percentage) for one month only if you received overtime in one month only?
e. G. Monthly income = R12050
Overtime = R4600
No benefits
How much tax for that month?

TaxTim reply:

Yes for that month you will be taxed at a higher rate as the PAYE is deducted based on the tax tables which are annualized.

Please have a look at this:

This is your take home pay: R14662


This is how you work it out:

Taxable income = Annual gross salary - Pension / Provident / RAF (limited to 27.5% of salary, limited to R350k) - 20% of travel allowance
(You are taxed on 80% of the travel allowance in your Gross salary, so we subtract 20% for the calculation of Taxable income.)
Taxable income = R 199,800.00 - R 0.00 - R 0.00
Taxable income for the year: R 199,800.00
Tax you will pay / PAYE (Pay As You Earn) for your age group and income bracket: R 1,838.33  (as per PAYE tables provided by SARS)
Take home pay = Gross salary - PAYE - UIF
(UIF / Unemployment Insurance Fund is levied at 1% of your gross income, at most R177.12)
Take home pay = R 16,650.00 - R 1,838.33 - R 148.72
Take home pay: R 14,662.95 per month :)

You can make use of our SARS income tax calculator to work out what the tax will be for any other month too.



This entry was posted in Tax Q&A and tagged , . Bookmark the permalink.




Submit your tax return right here!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.