The PAYE Threshold in South Africa is the total amount of income you can earn before you start paying tax.
What is the total amount of income you can earn before you pay tax?
The PAYE threshold is the total amount of income you can earn before you pay tax.
The PAYE threshold is adjusted each year to consider inflation, which means it will rise along with the cost of living. The exact amount depends on your age, but if you’re under 65 years old it’s currently R31 000 per month and if you’re over 65 years old then it’s currently R32 500 per month.
Because everyone is entitled to a basic exemption from paying tax no matter what their income level, this means that those earning less than this amount only need to submit a SARS form every time they earn more than the PAYE threshold in one year – which could be anytime during the year!
What is the PAYE threshold this year?
The PAYE threshold is the amount of money you can earn before you start paying tax. It changes every year, and there are different thresholds for those who are over 65 and those who are under 65.
The current PAYE threshold for those under 65 years of age is R 83 100 this year. The current PAYE threshold for those aged 65 or older to below 75 years of age has increased from R 153 500 in 2019/2020 to R 192 000 in 2020/2021.
If you’re 75 years or older, your annual PAYE threshold increases to R 145 300.
