Excel Skills | Income Tax Calculation Template

Instructions
www.excel-skills.com

This template enables users to perform income tax calculations based on multiple tax brackets (also referred to as a
sliding income scale). The template design incorporates seven default tax brackets, but you can add additional tax On
Onthis
this sheet:
sheet:
brackets if required. All the income tax calculations are automated and user input is limited to defining the appropriate tax This
This sheet
sheet includes
includes detailed
detailed
bracket values and income tax percentages. instructions
instructions on
on setting
setting up
up and
and using
using
this
this template.
template.
The template includes two sheets:
TaxCalc - this sheet contains the income tax brackets and enable users to perform income tax calculations by simply
entering the appropriate monthly remuneration amount and specifying the appropriate rebates and medical aid deduction
amounts.
Monthly - this sheet enables users to perform monthly income tax calculations based on variable monthly remuneration
amounts and also takes medical aid deductions into account in the calculation of the appropriate monthly income tax
amounts.

Tax Brackets Setup

Our tax bracket setup provides for seven tax brackets in the cell range from cell A3 to cell E10. All the cells with a light blue
cell background contain formulas and the cells with a light yellow cell background require user input. GET
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If the seven default tax brackets are sufficient for your income tax calculations, all you need to do is to enter the
appropriate tax bracket values in column B and the appropriate income tax percentages that relate to each tax bracket in
column C. The other cells in the tax bracket cell range will be updated automatically and the income tax calculation from
row 20 to 22 will automatically be calculated from the values that you've entered.

If you require more than seven income tax brackets for your calculation, simply insert the required number of additional
rows anywhere between row 4 and 9. Then copy the formulas from one of the existing cells in columns A, D and E (the
cells with the light blue cell background) in order to update the tax bracket formulas. After entering the appropriate tax
bracket values and income tax percentages, your tax bracket setup will be adjusted and will now consists of more than
seven tax brackets. The income tax calculations are also automatically updated.

Users also need to specify the total rebates amount in cell B12. This amount is deducted after calculating the income tax
that is applicable to the specified remuneration amount and also has the effect of reducing the effective income tax rate.

Medical aid deductions have also been added to the template. In order to calculate the correct monthly & annual medical
aid deductions, you need to specify the number of dependents and the medical aid deduction rates that are applicable to
the tax payer & first dependent and the additional dependents. These deductions are deducted from the monthly & annual
income tax amounts because the medical aid deductions should be deducted for pay-as-you-earn (PAYE) purposes.

Income Tax Calculation

The only user input that is required in order to perform an income tax calculation is to specify a gross monthly
remuneration amount in cell B22. The annual remuneration, annual income tax, monthly income tax, medical aid
deductions, net income tax, annual & monthly net remuneration and the effective income tax percentage are all calculated
based on the amount that is specified in this cell.

Monthly Income Tax Calculations

The Monthly sheet contains a monthly income tax calculation that can be performed by simply entering the appropriate
gross monthly remuneration amounts in column B. You can also specify a Start Date in cell B3 in order to change the
month end periods in column A.

Page 3 of 6
Excel Skills | Income Tax Calculation Template
Instructions
www.excel-skills.com

An annual gross pay equivalent, the cumulative income tax amount and monthly income tax amount are calculated based
on the monthly remuneration amounts that are entered in column B. The medical aid deductions are calculated based on On
Onthis
this sheet:
sheet:
the number of dependents which is specified in column F and the medical aid deduction rates that are specified on the This
This sheet
sheet includes
includes detailed
detailed
TaxCalc sheet. instructions
instructions on
on setting
setting up
up and
and using
using
this
this template.
template.
The calculations on this sheet are especially useful if the monthly remuneration is variable and enables the user to
calculate the monthly income tax that needs to be deducted under these circumstances.

Help & Customization

If you experience any difficulty while using this template and you are not able to find the appropriate guidance in these
instructions, please e-mail us at support@excel-skills.com for assistance. This template has been designed with flexibility
in mind to ensure that it can be used in most business environments. If however you need an Excel based template that is
customized specifically for your business requirements, please e-mail our Support function and provide a brief explanation
of your requirements.

© Copyright

This template remains the intellectual property of www.excel-skills.com and is protected by international copyright laws.
Any publication or distribution of this template outside the scope of the permitted use of the template is expressly
prohibited. In terms of the permitted use of this template, only the distribution of the template to persons within the same
organisation as the registered user or persons outside the organisation who can reasonably be expected to require access
to the template as a direct result of the use of the template by the registered user is allowed. Subsequent distribution of the
template by parties outside of the organisation is however expressly prohibited and represents an infringement of
international copyright laws.

Page 4 of 6
Income Tax Calculator
© www.excel-skills.com
Income Tax Brackets Tax Bracket Value Tax Rate Equivalent Value Effective Rate
From 0 to 195,850 195,850 18.0% 35,253 18.0%
From 195,850 to 305,850 305,850 26.0% 63,853 20.9%
From 305,850 to 423,300 423,300 31.0% 100,263 23.7%
From 423,300 to 555,600 555,600 36.0% 147,891 26.6%
From 555,600 to 708,310 708,310 39.0% 207,447 29.3%
From 708,310 to 1,500,000 1,500,000 41.0% 532,040 35.5%
From 1,500,000 and above 45.0%

Total Rebates 14,067

On
Onthis
thissheet:
sheet:
Define
Define the
the appropriate
appropriate tax
tax brackets,
brackets, enter
enter the
the total
total rebates
rebates amount,
amount, enter
enter
Medical Aid:
the
the number
number ofof medical
medical aid
aid dependents,
dependents, specify
specify thethe appropriate
appropriate medical
medical aid
aid
Number of Dependents 5 deduction rates and then simply specify the appropriate gross
deduction rates and then simply specify the appropriate gross monthly monthly
Medical Aid Tax Credits: remuneration in order to calculate the annual and monthly income
remuneration in order to calculate the annual and monthly income tax tax
Tax payer & first dependent 310 amounts.
amounts.
Additional dependents 209

Gross Remuneration Income Tax Medical Aid Net Income Tax Net Remuneration Income Tax %

Annual Remuneration 600,000 151,140 -14,964 136,176 463,825 22.7%

Monthly Remuneration 50,000 12,595 -1,247 11,348 38,652 22.7%
Monthly Income Tax Calculation
© www.excel-skills.com
Start Date 3/1/2018
Medical Aid
Monthly Cumulative Income Monthly Income Number of Medical Aid Net Monthly
Month Annual Equivalent
Remuneration Tax Tax Dependents Deduction Income Tax
March-2018 40,000 480,000 8,884 8,883.96 4 -1,038.00 7,845.96
April-2018 40,000 480,000 17,768 8,883.96 4 -1,038.00 7,845.96
May-2018 60,000 560,000 33,885 16,116.96 4 -1,038.00 15,078.96
June-2018 40,000 540,000 42,736 8,850.96 4 -1,038.00 7,812.96
July-2018 40,000 528,000 51,620 8,883.96 4 -1,038.00 7,845.96
August-2018 65,000 570,000 69,720 18,099.96 4 -1,038.00 17,061.96
September-2018 40,000 557,143 78,415 8,694.96 5 -1,247.00 7,447.96
October-2018 40,000 547,500 87,272 8,856.96 5 -1,247.00 7,609.96
November-2018 70,000 580,000 107,505 20,232.96 5 -1,247.00 18,985.96
December-2018 40,000 570,000 116,200 8,694.96 5 -1,247.00 7,447.96
January-2019 40,000 561,818 124,895 8,694.96 5 -1,247.00 7,447.96
February-2019 65,000 580,000 143,340 18,444.96 5 -1,247.00 17,197.96

On
Onthis
thissheet:
sheet:
Enter
Enter the
the appropriate
appropriate gross
gross monthly
monthly remuneration
remuneration amounts
amounts and
and the
the number
number of of
medical
medical aid
aid dependents
dependents in in order
order to
to calculate
calculate the
the month
month income
income tax
tax amounts.
amounts. TheThe start
start
date
date can
can bebe edited
edited to
to adjust
adjust the
the monthly
monthly periods.
periods. The
The calculations
calculations on
on this
this sheet
sheet
accommodate variable monthly remuneration
accommodate variable monthly remuneration amounts. amounts.