EXCEL-SKILLS.

COM
INCOME TAX CALCULATIONS TEMPLATE
This template enables users to perform annual income tax & monthly salary calculations based on multiple tax brackets
sliding income scale) and a number of other income tax & salary calculation variables. The template design incorporates sev
but you can add additional tax brackets if your region requires more tax brackets. All the income tax & monthly salary calc
and user input is limited to only a few earnings & deduction amounts.

Get the full version of the template to unlock all the formulas!
This is only a sample file created to show you the design of the template. Get the f
unprotected version of the template where you have full access to all areas of the template
You will also be able to edit and customize the full version just like any of your own Excel f

Get the full version of this template!

enable editing to activate the link

MPLATE
s based on multiple tax brackets (also referred to as a
template design incorporates seven default tax brackets
ncome tax & monthly salary calculations are automated

e formulas!
sign of the template. Get the full version for a fully
ccess to all areas of the template including all formulas.
just like any of your own Excel files.

e!
Excel Skills | Income Tax Calculation Template
Instructions
www.excel-skills.com

This template enables users to perform annual income tax & monthly salary calculations based on multiple tax brackets
(also referred to as a sliding income scale) and a number of other income tax & salary calculation variables. The template
design incorporates seven default tax brackets but you can add additional tax brackets if your region requires more tax
brackets. All the income tax & monthly salary calculations are automated and user input is limited to only a few earnings &
deduction amounts.

The template includes three sheets:

TaxCalc - this sheet contains the annual income tax, monthly salary and annual bonus calculations. Only the cells with
yellow
Monthlycell- backgrounds requireusers
this sheet enables user to
input and allmonthly
perform calculations
incomearetax
automated.
calculations based on variable monthly earnings and
annual bonus amounts. Only the cells with yellow cell backgrounds require user input - all other calculations are
automated.
Values - all the default values which are used in the income tax & salary calculations need to be specified on this sheet.
This includes the income tax rates at the top of the sheet, tax rebate amounts, medical tax credit amounts, unemployment
insurance limit and percentage, pension fund tax deduction limits and the travel allowance inclusion percentage. All of
these default values need to be updated at the start of a new tax year by entering the new values in the cells with yellow
cell backgrounds.

Note: This template has been designed for income tax and monthly salary calculation purposes and does not represent a
full payroll solution. If you are interested in a payroll solution which includes pay slips and much more comprehensive
functionality, please refer to our Monthly Payroll template.

How to calculate annual income tax payable

You can calculate your annual income tax payable on the TaxCalc sheet by simply entering values in all the cells with
yellow cell backgrounds. The annual income tax payable is then automatically calculated in columns D & E based on the
specified user input values and the default tax calculation variable amounts which are included on the Values sheet
(including the tax brackets at the top of the sheet).

How to calculate your net monthly salary

The TaxCalc sheet also includes a section for the monthly salary calculations in columns G & H. These calculations are
also based on the user input values on this sheet and the default tax brackets and other variable values on the Values
sheet. If your monthly salary does not consist of the same earnings and deduction amounts each month, you can use the
Monthly sheet to perform your salary calculations.

How to calculate your net annual bonus

The TaxCalc sheet also includes a section for the calculation of the net annual bonus amount. You can also use the
Monthly sheet to display the all of the income tax and net pay calculations for the full 12 months.

What about annual changes in income tax rates?

The income tax brackets which are used in all income tax calculations in this template are included at the top of the Values
sheet. At the start of a new tax year, you need to update all of the values on this sheet for the new tax year including the
income tax bracket values and percentages.

Only the cells with yellow cell backgrounds need to be updated - all the other cells contain formulas which will be updated
automatically when the user input values are amended. If you need to add more income tax brackets, you can insert a new
row anywhere between the first and last rows, copy the formulas from one of the existing rows (not the first or last) and
enter the new bracket value and percentage in the cells with yellow cell backgrounds.

Page 3 of 9
Excel Skills | Income Tax Calculation Template
Instructions
www.excel-skills.com

You can also delete tax brackets if less than the standard number of tax brackets are required by simply deleting one of the
existing tax brackets (the entire row) excluding the first or last tax bracket. When you delete a row, the other tax bracket
values will update automatically.

Note: All our templates are sold on a once-off basis and therefore do not include any annual updates. You can however
use this template for multiple tax years by simply updating the default tax calculation variables on the Values sheet at the
beginning of each new tax year.

Income Tax & Monthly Salary Calculation Guidance

Aside from the income tax brackets, this template includes a number of other variables in the calculation of monthly &
annual income tax and net pay. We will therefore provide guidance on how each of these items are included in the
template calculations:

Earnings
We include 4 earnings items in this template namely the basic monthly salary, monthly travel allowance, other monthly
allowances and the annual bonus. The earnings item amounts need to be specified by the user by entering the appropriate
values on the TaxCalc or Monthly sheets. The first three require monthly amounts to be entered and the bonus requires the
annual amount.

Travel allowances are not typically taxed fully for monthly income tax (PAYE) purposes and an income tax inclusion
percentage needs to be used to include only the specified percentage in the income tax calculations. This percentage
needs to be specified on the Values sheet.

Note: If travel allowances are only paid to employees with a high percentage of business travel, the norm is to use an
inclusion rate of 20% for travel allowances. If travel allowances are paid to employees who also have a lot of private travel,
the inclusion percentage should be 80%. If in doubt, use the higher percentage of 80%.

Note: At the end of a tax year, most employees who receive a travel allowance need to submit their vehicle logbooks as
part of their income tax return and the actual exempt portion of their travel allowance would then be determined based on
the actual total business mileage travelled. The inclusion rate which is used in this template is therefore for monthly PAYE
purposes and does not reflect the actual tax return amounts.

Pension Deduction

The monthly pension deduction amounts (if any) need to be entered by the user on the TaxCalc and Monthly sheets.
Pension contributions are deductible for income tax purposes but limited to a maximum allowable percentage and/or
maximum annual amount as specified on the Values sheet.

Medical Tax Credits

Medical aid tax credits are calculated as a rebate (therefore after tax payable has been calculated) and the calculation is
based on the number of dependents which are included in a person's medical aid. The number of dependents needs to be
specified by the user on the TaxCalc and Monthly sheets and should include the tax payer or primary member. The
monthly allowed tax credit amounts per dependent are included on the Values sheet and these values are multiplied by the
number of dependents to determine the amount of the tax credit.

Note: If medical tax credits are not applicable and should not be included in the income tax calculations, entering zero
dependents will result in a zero medical tax credit amount.

Age

Page 4 of 9
Excel Skills | Income Tax Calculation Template
Instructions
www.excel-skills.com

The tax payer age which is specified on the TaxCalc and Monthly sheets is used only in calculating which income tax
rebate (primary, secondary or tertiary) is applicable to the tax payer. The minimum age and amount of each rebate
category can be maintained on the Values sheet.

Unemployment Insurance Fund (UIF)

The rate and annual contribution limit for UIF calculation purposes is specified on the Values sheet. If you are in a region
which does not have UIF, you can enter zero percent as the rate to exclude this salary deduction from the template
calculations.

Annual Bonus

If you enter an annual bonus amount, this earnings amount will be included in the annual tax payable calculation on the
TaxCalc sheet and also included separately below the monthly salary calculation section. The annual bonus therefore does
not form part of the monthly salary calculation section on the TaxCalc sheet.

If you therefore want to know what the net bonus amount after tax and the UIF deduction would be, refer to this separate
section for the calculated net bonus amount and the income tax which will be deducted from the bonus.
If you use the Monthly sheet, the annual bonus needs to be included in the appropriate month (which can be any of the 12
monthly periods) and the income tax and UIF amounts attributable to the bonus payment will also be included in this
month.

Monthly Income Tax Calculations

The Monthly sheet can be used for calculating income tax and net monthly salary for each of the 12 months which form
part of the appropriate tax year. This is especially useful where the monthly earnings amounts are not consistent from
month to month and also provides a clearer picture of earnings, deductions and income tax calculations for the entire tax
year.

Only cells with yellow cell backgrounds require user input - all other cells contain formulas which automatically calculate the
appropriate amounts. The period start date which is specified at the top of the sheet determines which monthly periods are
included in column A. The date which should be entered in this cell should be the first day of the appropriate tax year. If
you leave the period start cell blank, the template will default to the current date and the first period would start from the
end of the current month.
The Monthly sheet also contains input cells for age and the number of medical aid dependents at the top of the sheet. The
income tax rebate amount next to this section is calculated based on the age and the medical tax credits amount is
calculated based on the number of dependents. Both of these amounts are annual amounts which are included in the
annual income tax payable calculation.

User input is also required for the monthly earnings amounts and the monthly pension contributions. All the other columns
(with blue cell backgrounds) contain formulas which should not be edited or replaced otherwise the template calculations
may become inaccurate.

These calculated columns contain the following calculations:

Gross Pay - the total of all of the earnings columns.
Income Tax (PAYE) - the monthly income tax amount which is based on the tax payable monthly EQV and tax payable
annual columns. These columns are included for the detailed income tax calculations from the tax brackets and the formula
in this column basically just combines the monthly calculations and the tax on the annual bonus so that the tax on the
bonus is not spread over the remaining months in the tax year.
Unemployment Insurance (UIF) - this is the calculation of the UIF salary deduction based on the maximum percentage
and maximum contribution value which is specified on the Values sheet.
TotalPay
Net Deductions
- the net -amount
the sumpaid
of the
to income tax, pension
the employee and
and is theUIF deductions.
difference between the total earnings (gross pay) and total
deductions.

Page 5 of 9
Excel Skills | Income Tax Calculation Template
Instructions
www.excel-skills.com
Pay Period - the pay periods start from the first month where the gross pay is not nil. If you start entering earnings
amounts in month 6, the first pay period will be in month 6 and there will be less than 12 pay periods in the tax year. The
annual taxable income calculation will still be based on a full 12 months in the tax year to ensure that the correct income
tax amounts are calculated.
Pension Tax Deduction - this is the allowable tax deduction for the pension contribution based on the maximum
percentage and maximum amount values which are included on the Values sheet. These annualized amounts are
deducted from theIncome
Annual Taxable annual taxable
- this isearnings to calculate
the annualized total the annual
of all tax payable.
earnings. Note that the travel allowance is multiplied by the
inclusion percentage on the Values sheet and the amount in this column may therefore differ from the annualized gross
pay amount.
Taxable Income Monthly EQV - this is the taxable income on all earnings amounts excluding the annual bonus.
Tax Payable Total - this is the total annual tax payable.
Tax Payable Monthly EQV - this is the total annual tax payable based on earnings and deductions which are paid on a
monthly basis (only the annual bonus is therefore excluded).
Tax Payable Annual - this is the tax payable on the annual bonus amount and is the difference between the total annual
tax payable and the tax payable on monthly equivalents (amounts paid every month).
Note: The Monthly sheet also includes totals above the column headings for all columns which contain monthly values.
These totals will agree with the amounts which are calculated on the TaxCalc sheet. The Monthly sheet therefore provides
a more comprehensive view of annual earnings, income tax and deductions especially if an annual bonus forms part of
remuneration.

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 6 of 9
Salary & Income Tax Calculator
© www.excel-skills.com
Monthly Salary Amounts Annual Income Tax Calculation Monthly Salary Calculation

Basic Monthly Salary 50,000 Taxable Earnings: Earnings:

Basic Salary 600,000.00 Basic Salary 50,000.00
Travel Allowance 0 Travel Allowance (only 80%) - Travel Allowance -
Other Allowances - Other Allowances -
Other Allowances 0 Annual Bonus 50,000.00 Gross Pay 50,000.00
Total Taxable Earnings 650,000.00
Annual Bonus 50,000 Less: Taxable Pension - Deductions:
Taxable Income 650,000.00 Income Tax (PAYE) 11,302.67
Pension Deduction 0 Unemployment Insurance (UIF) 177.12
Total Taxation 170,867.00 Pension Fund -
Medical Dependents 0 Less: Rebate 17,235.00 Total Deductions 11,479.79
Less: Medical Tax Credits -
Your Age 30 Annual Tax Payable 153,632.00 Net Monthly Pay 38,520.21
Income Tax % 23.6% Annual Eqv - Monthly Pay 600,000.00
Annual Bonus Payment
Annual Bonus 50,000.00
On this sheet:
Our salary & income tax calculator calculates the annual income tax payable, monthly salary Less: Tax On Bonus 18,000.00
including tax and net pay and an annual net bonus. Only the cells with yellow cell backgrounds Less: UIF On Bonus -
Net Annual Bonus
require user input. All tax & deduction calculations are based on the tax tables & variables which 32,000.00
are included on the Values sheet.

Page 7 of 9
Salary & Income Tax Calculator PERIOD START AGE MED DEPENDENTS REBATE MED TAX CREDIT
Monthly Calculations 3/1/2024 30 0 17,235 0
© www.excel-skills.com 600,000 - - 50,000 650,000 153,632 2,125 - 155,757 494,243
Basic Monthly Annual Income Tax Unemployment Pension Total
Period Travel Allowance Other Allowances Gross Pay Net Pay
Salary Bonus (PAYE) Insurance (UIF) Fund Deductions
March-2024 50,000 - - - 50,000 11,303 177 - 11,480 38,520
April-2024 50,000 - - - 50,000 11,303 177 - 11,480 38,520
May-2024 50,000 - - - 50,000 11,303 177 - 11,480 38,520
June-2024 50,000 - - - 50,000 11,303 177 - 11,480 38,520
July-2024 50,000 - - - 50,000 11,303 177 - 11,480 38,520
August-2024 50,000 - - - 50,000 11,303 177 - 11,480 38,520
September-2024 50,000 - - - 50,000 11,303 177 - 11,480 38,520
October-2024 50,000 - - - 50,000 11,303 177 - 11,480 38,520
November-2024 50,000 - - - 50,000 11,303 177 - 11,480 38,520
December-2024 50,000 - - 50,000 100,000 29,303 177 - 29,480 70,520
January-2025 50,000 - - - 50,000 11,303 177 - 11,480 38,520
February-2025 50,000 - - - 50,000 11,303 177 - 11,480 38,520

Page 8 of 9
Income Tax Calculator Variables
© www.excel-skills.com
Income Tax Rates

Tax Bracket Tax Equivalent Effective

Income Tax Brackets
Value Rate Value Rate
From 0 to 237,100 237,100 18.0% 42,678 18.0%
From 237,100 to 370,500 370,500 26.0% 77,362 20.9%
From 370,500 to 512,800 512,800 31.0% 121,475 23.7%
From 512,800 to 673,000 673,000 36.0% 179,147 26.6%
From 673,000 to 857,900 857,900 39.0% 251,258 29.3%
From 857,900 to 1,817,000 1,817,000 41.0% 644,489 35.5%
From 1,817,000 and above 45.0%

Rebates Amount Min Age

Primary 17,235 0 On this sheet:
Secondary 26,679 65 All the default values which are used in the income tax & salary calculations need to be specified on
Tertiary 29,824 75 this sheet. This includes the income tax rates at the top of the sheet, tax rebate amounts, medical tax
credit amounts, unemployment insurance limit and percentage, pension fund tax deduction limits and
Medical Aid Tax Credits the travel allowance inclusion percentage. All these default values need to be updated at the start of a
Tax payer & first dependent 364 new tax year by entering the new values in the cells with yellow cell backgrounds.
Additional dependents 246

Unemployment Insurance Fund (UIF)

Contribution % 1.0%
Annual contribution limit 212,544

Pension Deduction
Maximum tax deduction value 350,000
Maximum tax deduction % 27.5%

Travel Allowance
Taxable portion of allowance 80.0%

Page 9 of 9