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Tax and your take-home pay

Income tax is deducted before your salary reaches you, which is why gross and net differ so much. Two misconceptions cause real financial mistakes, and both are worth clearing up.

PAYE
Deducted at source
Tax brackets
Are marginal
A raise
Never reduces net pay
Refunds
Require a return

Tax brackets are marginal: a higher rate applies only to the portion of income above the threshold, not to everything you earn. Moving into a higher bracket never leaves you with less money, and refusing overtime for that reason costs you real income.

Your net pay is what matters for credit. A lender assesses affordability from what actually lands in your account, so gross salary is not the figure to plan a budget around.

You may be owed a refund. Medical expenses, retirement annuity contributions and certain other deductions frequently mean too much was withheld — and the refund is only paid if you file a return.

Filing with SARS is free, and eFiling handles most straightforward cases in minutes. Anyone charging you for a simple return is charging for something you can do yourself.

Related

Understanding your payslipProving your income to a South African lenderMaking a monthly budget that survives contact with the month

Sources and last checked

This page explains how ZarCash works rather than citing external material.

Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.