Calculating Tax Using the Tax Table

Oct 13, 2025 by talynt.org 80 views

Introduction

Tax tables are used to calculate the amount of tax owed on an individual's income. The tax table is a schedule that outlines the tax rates and the corresponding taxable income ranges. In this article, we will focus on the tax table for the 2015/2016 tax year, which is presented in Table 1.

Table 1: Tax Table for 2015/2016

Taxable Income	Rates of Tax
R0 - R181,900	18% of each rand
R181,901 - R284,100	R32,742 + 26% of the amount above R181,900
R284,101 and above	R73,729 + 30% of the amount above R284,100

Calculating Tax Using the Tax Table

To calculate the tax owed using the tax table, we need to follow these steps:

Determine the taxable income.
Identify the tax rate applicable to the taxable income.
Calculate the tax owed using the tax rate and the taxable income.

Let's consider an example to illustrate this process.

Example 1: Calculating Tax for Taxable Income of R200,000

Using the tax table, we can see that the tax rate applicable to taxable income of R200,000 is 26%. To calculate the tax owed, we need to calculate the amount above R181,900, which is R18,100 (R200,000 - R181,900).

The tax owed is then calculated as follows:

Tax owed = R32,742 + 26% of R18,100 = R32,742 + R4,726 = R37,468

Calculating Tax for Taxable Income of R300,000

Using the tax table, we can see that the tax rate applicable to taxable income of R300,000 is 30%. To calculate the tax owed, we need to calculate the amount above R284,100, which is R15,900 (R300,000 - R284,100).

The tax owed is then calculated as follows:

Tax owed = R73,729 + 30% of R15,900 = R73,729 + R4,790 = R78,519

Calculating Tax for Taxable Income of R400,000

Using the tax table, we can see that the tax rate applicable to taxable income of R400,000 is 30%. To calculate the tax owed, we need to calculate the amount above R284,100, which is R115,900 (R400,000 - R284,100).

The tax owed is then calculated as follows:

Tax owed = R73,729 + 30% of R115,900 = R73,729 + R34,770 = R108,499

Conclusion

In this article, we have discussed the tax table for the 2015/2016 tax year and provided examples of how to calculate tax owed using the tax table. We have also highlighted the importance of understanding tax tables and how they are used to calculate tax owed.

Mathematical Concepts Used

Tax tables
Tax rates
Taxable income
Calculating tax owed

Real-World Applications

Understanding tax tables is essential for individuals and businesses to calculate tax owed and make informed decisions about their finances.
Tax tables are used by tax authorities to calculate tax owed and to ensure that individuals and businesses are paying the correct amount of tax.

Q&A: Frequently Asked Questions About Tax Tables

Q: What is a tax table?

A: A tax table is a schedule that outlines the tax rates and the corresponding taxable income ranges. It is used to calculate the amount of tax owed on an individual's income.

Q: How do I use a tax table to calculate tax owed?

A: To use a tax table to calculate tax owed, you need to follow these steps:

Determine the taxable income.
Identify the tax rate applicable to the taxable income.
Calculate the tax owed using the tax rate and the taxable income.

Q: What is the difference between a tax table and a tax rate?

A: A tax table is a schedule that outlines the tax rates and the corresponding taxable income ranges. A tax rate is the percentage of tax owed on a certain amount of income.

Q: How do I calculate the tax owed using a tax table?

A: To calculate the tax owed using a tax table, you need to follow these steps:

Determine the taxable income.
Identify the tax rate applicable to the taxable income.
Calculate the tax owed using the tax rate and the taxable income.

Q: What is the taxable income range for each tax rate?

A: The taxable income range for each tax rate is as follows:

18% of each rand for taxable income of R0 - R181,900
R32,742 + 26% of the amount above R181,900 for taxable income of R181,901 - R284,100
R73,729 + 30% of the amount above R284,100 for taxable income of R284,101 and above

Q: How do I calculate the tax owed for a taxable income of R200,000?

A: To calculate the tax owed for a taxable income of R200,000, you need to follow these steps:

Determine the taxable income, which is R200,000.
Identify the tax rate applicable to the taxable income, which is 26%.
Calculate the tax owed using the tax rate and the taxable income.

The tax owed is then calculated as follows:

Tax owed = R32,742 + 26% of R18,100 = R32,742 + R4,726 = R37,468

Q: How do I calculate the tax owed for a taxable income of R300,000?

A: To calculate the tax owed for a taxable income of R300,000, you need to follow these steps:

Determine the taxable income, which is R300,000.
Identify the tax rate applicable to the taxable income, which is 30%.
Calculate the tax owed using the tax rate and the taxable income.

The tax owed is then calculated as follows:

Tax owed = R73,729 + 30% of R15,900 = R73,729 + R4,790 = R78,519

Q: How do I calculate the tax owed for a taxable income of R400,000?

A: To calculate the tax owed for a taxable income of R400,000, you need to follow these steps:

Determine the taxable income, which is R400,000.
Identify the tax rate applicable to the taxable income, which is 30%.
Calculate the tax owed using the tax rate and the taxable income.

The tax owed is then calculated as follows:

Tax owed = R73,729 + 30% of R115,900 = R73,729 + R34,770 = R108,499

Conclusion

In this article, we have provided a Q&A section to help individuals understand tax tables and how to calculate tax owed using a tax table. We have also highlighted the importance of understanding tax tables and how they are used to calculate tax owed.

Mathematical Concepts Used

Tax tables
Tax rates
Taxable income
Calculating tax owed

Real-World Applications

Understanding tax tables is essential for individuals and businesses to calculate tax owed and make informed decisions about their finances.
Tax tables are used by tax authorities to calculate tax owed and to ensure that individuals and businesses are paying the correct amount of tax.