This is one of the most common misunderstandings about tax brackets. Someone might reject a salary increase believing SARS will take more tax from everything they earn — that's not how a progressive system works, and take-home pay still rises with an increase.
Source: SARS
Frequently Asked Questions
Does entering a higher tax bracket mean all my income is taxed at the higher rate?
No.
Why does South Africa use tax brackets?
The progressive system applies different rates to different portions of taxable income.
Can a salary increase still increase take-home pay?
Yes — although the additional income may attract additional tax, the employee can still receive additional net income.
