Commission Tax Calculator South Africa
See exactly how much of your commission you keep after PAYE — and how a big commission month changes your take-home pay. Uses official SARS 2026/2027 tax brackets.
Commission income is taxed differently from a salary in South Africa — the Fourth Schedule of the Income Tax Act allows commission earners to deduct 50% of commission as business expenses before PAYE is calculated. Whether you are a sales professional, estate agent or broker, this calculator gives you an instant breakdown of your monthly commission after PAYE, UIF and the 50% expense rule, using the official SARS 2026/2027 tax tables.
Commission is taxed as normal PAYE income, but Section 11(a) lets qualifying commission earners deduct actual business expenses (travel, home office, cell phone) against it via their annual ITR12. If commission exceeds 50% of total remuneration, Section 7B allows cash-basis PAYE, taxing it in the month received rather than accrued (SARS, 2026/2027).
💼 Commission Income Details
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How to Use This Calculator
Enter base salary and commission
Enter your base salary and the commission earned this month separately.
Combined income is annualised
The calculator multiplies total monthly income × 12 to project your annual earnings for this month.
SARS brackets are applied
2026/2027 tax brackets are applied to the annualised figure and rebates deducted.
Monthly PAYE is divided from annual tax
Annual tax ÷ 12 = PAYE for the month. High-commission months produce higher PAYE; low months produce less.
Net commission and take-home shown
Results show PAYE, UIF, and net take-home for the month.
How Commission is Taxed in South Africa
One of the most common questions among South African sales professionals is: "why does my take-home barely move when I earn a big commission?" The answer lies in how SARS taxes variable income. Commission is not taxed at a special flat rate — it is treated as ordinary income, added to your basic salary, and taxed using the same progressive brackets that apply to every other employee.
The critical word here is progressive. South Africa uses a tiered system where you pay higher rates only on income above each threshold — but once your basic salary already fills the lower brackets, your commission lands squarely in the higher ones.
The Annualisation Method
Your employer does not look at your commission month in isolation. The SARS PAYE method requires employers to annualise your monthly earnings — multiply your total pay for the month by 12 — to estimate what you would earn annually at that pace. This projected annual figure determines which tax bracket applies for that month.
Monthly gross = Basic salary + Commission − RA deduction
Annual projection = Monthly gross × 12
Annual tax = Tax(Annual projection) − Rebate − (Medical credits × 12)
Monthly PAYE = Annual tax ÷ 12
/* Tax specifically attributable to your commission: */
Commission PAYE = Monthly PAYE (with commission) − Monthly PAYE (without commission)
A Real Example: R18,000 Basic + R25,000 Commission
| Item | Basic Only Month | Commission Month |
|---|---|---|
| Gross income (monthly) | R 18,000 | R 43,000 |
| Annual projection (× 12) | R 216,000 | R 516,000 |
| Annual tax (pre-rebate) | R 38,880 | R 123,381 |
| Primary rebate | − R 17,820 | − R 17,820 |
| Annual PAYE | R 21,060 | R 105,561 |
| Monthly PAYE | R 1,755 | R 8,797 |
| UIF (1%, capped) | R 177.12 | R 177.12 |
| Take-home | R 16,068 | R 34,026 |
| Extra take-home vs basic month | — | + R 17,958 |
| Tax on commission (R25,000) | — | R 7,042 (28.2%) |
In this example, earning R25,000 commission results in R17,958 extra take-home — not R25,000. SARS takes R7,042 (28.2%) from the commission. The effective marginal rate on the commission is 28.2% because it straddles the 18% and 26% brackets in the annualised calculation. A higher basic salary would push the commission into the 31% or 36% bracket, reducing the take-home further.
The 50% Rule — Commission Earners and Expense Deductions
South African tax law draws a distinction between employees who earn a small amount of commission on top of a large basic salary, and those whose income is predominantly commission-based. Under Section 11(a) and Section 23(m) of the Income Tax Act, if commission comprises more than 50% of your total remuneration, you may deduct work-related expenses against your commission income on your annual ITR12 return.
Qualifying deductions include:
- Travel expenses — requires a detailed logbook; calculated at the SARS prescribed rate per kilometre or on actual cost
- Home office costs — proportional share of rent/bond interest, rates, electricity, for the dedicated workspace
- Cell phone and data — the business-use portion
- Client entertainment — limited; must be wholly and exclusively for business
- Professional subscriptions — directly related to your income-earning activities
These deductions reduce your taxable income on assessment, often resulting in a SARS refund. However, they cannot be adjusted on your monthly payslip — your employer still withholds PAYE at the full rate each month and you reclaim the benefit at tax return time (February/March).
Worked Example — Calculating Commission Tax
A sales representative earns a R12,000/month base salary plus commission that varies monthly. In a strong month, they earn R28,000 in commission on top of their base — R40,000 gross for that month.
| Item | Amount |
|---|---|
| Monthly base salary | R 12,000 |
| Monthly commission earned | R 28,000 |
| Total gross for the month | R 40,000 |
| Annual projected income (× 12) | R 480,000 |
| Annual PAYE on R480,000 (2026/2027 SARS tables) | R 90,281 |
| Monthly PAYE deducted | R 7,523 |
| Commission as % of total remuneration | 70% — qualifies as a commission earner |
| Net take-home for the month | R 32,077 (before UIF) |
Because commission makes up 70% of this employee's total remuneration — well above the 50% threshold — they qualify to deduct genuine business expenses (vehicle costs, cell phone, home office) against this income when filing their annual return, reducing their final tax liability beyond what was deducted monthly via PAYE.
What Counts as a Business Expense for Commission Earners?
Qualifying commission earners can deduct costs directly incurred in earning commission: vehicle expenses (either the SARS cost table or the simplified per-kilometre rate, with a logbook), the business-use portion of cell phone and data bills, home office costs if a dedicated space is used, and stationery or other direct consumables. Commuting costs and personal expenses are never deductible, and SARS may request supporting documentation for any claim, so keeping receipts and a logbook throughout the year is essential — not just at tax season.
How Commission Interacts With Your Annual Tax Return
Even if you don't qualify as a commission earner under the 50% rule, any commission you receive still needs to be correctly reflected when you file your annual ITR12. Your IRP5 will show code 3606 for commission separately from code 3601 for salary, and SARS uses both figures to reconcile the PAYE already deducted against your actual annual tax liability. If your commission fluctuated significantly month to month — common in sales roles — the monthly PAYE deducted using the aggregation method may not perfectly match your final liability, which can result in either a modest refund or a small amount owed once your return is assessed.
If you do qualify as a commission earner and plan to claim business expenses, keep your supporting records (logbook, invoices, bank statements) for at least five years, as SARS can request substantiation of any claimed deduction within that period. Filing without adequate records is the most common reason legitimate commission-earner expense claims get rejected or delayed during an audit.
Frequently Asked Questions
How is commission taxed in South Africa?
Why do I pay more tax in a high-commission month?
Why does my take-home increase less than my commission amount?
Is there a special PAYE rule for pure commission earners in South Africa?
Can I deduct business expenses against my commission income?
How is commission calculated on a payslip in South Africa?
Do I pay UIF on my commission?
Can I reduce the PAYE on my commission by increasing my RA contributions?
What if my employer deducted too much PAYE in my commission month?
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