TaxTim's free SARS payroll tax calculator works out PAYE, UIF and take-home pay for every employee on your staff in one go for the 2026/2027 tax year (1 March 2026 – 28 February 2027). Paste a spreadsheet of your staff, choose how often they're paid, and we email you a ready-to-use breakdown of taxable income, UIF, PAYE and net pay. It's the fast way for employers, bookkeepers and small businesses to estimate the employees' tax they must withhold and declare to SARS each month.
For each employee the calculator first works out annual taxable income: gross remuneration less the allowable retirement-fund contribution (pension, provident and RAF combined, deductible under section 11F at 27.5% of the greater of remuneration or taxable income, capped at R430,000 per year for the 2027 tax year, up from R350,000 for years to 2026), less 20% of any travel allowance (only 80% of a travel allowance is taxed through the payroll). It then applies the SARS individual tax tables and rebates for the employee's age to get annual PAYE, which is divided down to the pay period. UIF is added at 1% of remuneration, capped at R177.12 per month because contributions are only levied on the first R17,712 of monthly earnings. The result is take-home pay = gross − PAYE − UIF − retirement contributions. The Skills Development Levy (SDL) of 1% of payroll, payable by employers whose total annual payroll exceeds R500,000, is a separate employer cost and is described in the rates below.
Employees' tax components for the 2027 tax year (1 Mar 2026 – 28 Feb 2027)
| Component | Rate / cap |
|---|---|
| UIF (employee) | 1% of remuneration, capped at R177.12/month (ceiling R17,712/month = R212,544/year) |
| UIF (employer) | 1% of remuneration, same R177.12/month cap (total UIF = 2%, max R354.24/month) |
| SDL (employer) | 1% of total payroll; only payable if total annual payroll > R500,000 |
| Retirement (s11F) | 27.5% of the greater of remuneration or taxable income, capped at R430,000/year (2027); R350,000 for years up to 2026 |
| Travel allowance | 80% included in remuneration for PAYE (20% excluded) |
PAYE individual tax brackets for the 2027 tax year
| Taxable income | Tax |
|---|---|
| R0 – R245,100 | 18% |
| R245,101 – R383,100 | R44,118 + 26% above R245,100 |
| R383,101 – R530,200 | R79,998 + 31% above R383,100 |
| R530,201 – R695,800 | R125,599 + 36% above R530,200 |
| R695,801 – R887,000 | R185,215 + 39% above R695,800 |
| R887,001 – R1,878,600 | R259,783 + 41% above R887,000 |
| R1,878,601+ | R666,339 + 45% above R1,878,600 |
Rebates: Primary R17,820; Secondary (65+) +R9,765; Tertiary (75+) +R3,249. Tax thresholds (no PAYE below): under 65 = R99,000; 65–74 = R153,250; 75+ = R171,300. Medical scheme fees credit (s6A), applied in PAYE where the employer administers the scheme: R376/month main member, R376/month first dependant, R254/month each additional dependant.
Example (2027 tax year, paid monthly): An employee aged 40 earns R30,000 per month (R360,000/year) with no retirement contributions or travel allowance.
On the employer side, this R360,000 payroll also attracts SDL of 1% (R3,600/year, if total annual payroll across all staff exceeds R500,000) plus the employer's matching R177.12/month UIF.
Employers withhold PAYE (employees' tax) and the employee's 1% UIF from each salary, then pay these to SARS monthly on an EMP201. Employers also pay their own 1% UIF and, if total annual payroll exceeds R500,000, a 1% Skills Development Levy (SDL). All are remitted within seven days after month-end.
UIF is 1% of an employee's remuneration, matched by 1% from the employer (2% total). It's only charged on the first R17,712 of monthly earnings, so each side's contribution is capped at R177.12 per month (R354.24 combined). Anyone earning above R17,712 contributes the maximum R177.12.
SDL is 1% of your total payroll and is an employer-only cost. You must register and pay it if your total annual payroll exceeds R500,000 over a 12-month period. It funds SETAs, and compliant employers can claim back up to 20% through a workplace skills plan. It's declared monthly on the EMP201.
For each employee it computes annual taxable income (gross, less retirement contributions deductible under section 11F and 20% of any travel allowance), applies the SARS individual tax tables and the age-based rebate, then divides the result by the pay period. It mirrors the SARS PAYE tables used on the monthly EMP201.
Yes. Paste a spreadsheet with five columns per employee (Name, total salary, age, combined pension/provident/RAF contribution, and travel allowance), pick the pay frequency and tax year, and TaxTim emails you a CSV showing taxable income, UIF, PAYE and take-home pay for every employee.
For salaries you're paying right now, use the 2027 tax year (1 March 2026 – 28 February 2027), which carries the latest Budget 2026 brackets, rebates and the higher R430,000 s11F cap. The calculator also offers earlier years back to 2023 if you need to recheck a prior period's payroll or a back-pay adjustment.
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