Every employee who earns more than a certain amount (known as the “threshold”) in a year of assessment must pay income tax. The threshold amount for the 2022/2023 year of assessment is R91 250 if you are under 65 years, R141 250 if you are between 65 and 75 years, and R157 900 if you are older than 75 years. For example, if you are 66 years old you can earn up to R141 250 for the 2022/2023 tax year without having to pay tax; if you are 55 years old and you earn R78 000 for the 2022/2023 tax year, you will also not have to pay tax because you are earning below the tax thresholds. Once you earn more than these amounts, you will be taxed either according to the PAYE tax tables based on what you earn.

A year of assessment for an individual consists of twelve months starting on 1 March and ending on the last day of February of the following year.