Is PAYE taken off taxable income?

No. PAYE is credited after the tax is calculated.

Tax Tips · 7 min

What Is Taxable Income in South Africa?

If the working on a website does not add up, the website is wrong — not you.27 September 2026 All articles

The stack

Start with amounts that are income (IRP5 gross, invoices, rent, interest). Subtract exemptions (local interest up to the slice). Subtract deductions that actually qualify (11F, 18A, trade expenses if you have a trade). Add the CGT inclusion (40% of the gain after the R50,000 exclusion), not the full proceeds. That is taxable income. Then apply brackets and rebates. Then subtract PAYE, provisional tax, and medical credits.

What people add twice

Full share-sale proceeds plus the CGT inclusion. A SARS refund as if it were a salary. Interest as if it were a capital gain. Net salary without PAYE, then again the IRP5.

Effective rate

Tax ÷ taxable income is a honest headline. Tax ÷ every bank credit including refunds and proceeds is a marketing number.

Questions

Is PAYE taken off taxable income?: No. PAYE is credited after the tax is calculated.

Disclaimer: This is general guidance based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2026/2027 year of assessment (1 March 2026 – 28 February 2027). It is not professional tax advice. Deductibility depends on your facts. Confirm current figures on sars.gov.za before you file.

Find the income your IRP5 misses in your bank statements

Upload bank statements. Taxzi flags lines that may qualify under SARS rules. Mixed shops stay out until you say what they were. You confirm every claim. This is guidance — not a filed return.

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