Income from two sources

What to do if you receive income from two sources?

Taxpayers who receive income from more than one source of employment are reminded that the employees’ tax (PAYE) deducted by the respective employers may not be enough to cover their final tax liability on assessment. The reason for this is the manner in which a taxpayer’s tax liability is calculated on assessment.

The South African tax system is based on the principle of adding together all sources of income of a taxpayer into a single sum, and applying a progressive tax rate table to determine the final tax liability of the taxpayer on assessment. A progressive tax rate system means that the more income is earned, the higher the marginal tax rate and more tax is paid on assessment. 

By deducting PAYE every month, the employer is assisting a taxpayer to pay his or her tax liability in advance, that will be finally determined on assessment. When only one employer is involved, the total PAYE deducted monthly should be equal to the tax liability on assessment. Typically, this should result in no extra tax due on assessment. However, where more than one employer is involved, each of them deducts the correct amount of PAYE on only the salary they each pay.  When all the sources of income are added and the correct tax rate is applied this may result in an additional amount of tax to be paid on assessment.

An example

The table below gives an example of how the combined taxable income is calculated in the case of a taxpayer who is over the age of 65 years and receives a salary of R240 000 from employer A and a salary of R160 000 from employer B during the tax year.

Salary (Employer A)


(Employer B)

Taxable income​​240 000​160 000400 000
​Normal tax payable18 895​3 375​62 840
​Less: Tax paid in the form of PAYE withheld by employer and pension fund​18 895​3 375​22 270
​Additional amount of tax to be paid on assessment40 570

As you can see, after submission of the annual income tax return by this individual, the total tax liability on assessment is significantly higher than the total PAYE that was correctly deducted by the employers during the year. This results in a large amount that has to be paid in on assessment because too little tax was deducted monthly by way of PAYE.

To assist taxpayers who are in this situation, the Income Tax Act allows a taxpayer to make additional voluntary tax payments. Taxpayers receiving a salary may make a written request to one or more employers to deduct additional monthly PAYE. A provisional taxpayer may instead pay a higher amount of provisional tax.

In this way a taxpayer is able to reduce the additional amount of tax payable when the annual income tax return is assessed.

How to arrange for a voluntary additional PAYE deduction

A taxpayer has two options to voluntarily pay more PAYE:

  • The first option is a simplified mechanism which involves applying a single percentage at which PAYE should be deducted by all employers that pay a salary to the taxpayer.
  • The second option is to increase the amount of PAYE deducted by one or more employers but is slightly more complex to calculate. The taxpayer may need assistance from SARS, their tax practitioner or the payroll personnel at their employer. 

Option 1 – increasing the percentage at which PAYE is deducted by all employers

To enable the employers to implement additional PAYE deductions the following steps are required:

  • Firstly, estimate the total taxable income for the current tax year by combining all your salaries.
  • Secondly, identify the recommended percentage at which tax should be deducted, based on the combined estimated taxable income by referring to the table below. The table sets out the percentage at which tax should be withheld at the various combined taxable income levels. This table is simply an estimate of the tax liability, and it is still possible that there may be an under or over recovery of tax when using these percentages.
  • Thirdly, request the employers to apply (as a minimum) the applicable percentage at which to deduct PAYE from the salary paid by each of them. For example, if there are three employers paying a salary, then all three should deduct tax at the same percentage.

Combined taxable income from all sources​ ​

​Recommended percentage at which tax is to be deducted by employers and retirement funds for the 2023 tax year (1 March 2022 to 28 February 2023)
​ ​

​Under the
age of 65

​65 years and older
but under the age of 75

75 years and older​

​Up to R91 250




​R91 251  to R141 250




​R141 251 to R157 900




​R157 901 to R226 000




​R226 001 to R353 100




​R353 101 to R488 700




​R488 701 to R641 400




​R641 401 to R817 600




​R817 601 to R1 731 600




R1 731 601 to R10 000 000




​R10 000 001 and above




Option 2 – increasing the amount of PAYE deducted by a specific employer or pension fund

To enable one or more employers or pension funds to deduct additional PAYE the following steps are required:

  • Firstly, estimate the total taxable income for the current tax year by combining all your salaries and pensions.
  • Secondly, calculate the total estimated income tax liability for the current tax year on the estimated total taxable income using the table below for the 2022/23 tax year and deduct the appropriate tax rebate. You can also contact your employer, pension fund, tax practitioner or SARS to assist in calculating the total income tax liability.
  • Thirdly, calculate the estimated combined total PAYE to be deducted by all employers  and pension funds for the tax year (before any additional PAYE) and calculate the shortfall (difference between the total income tax liability for the current year and the estimated combined total PAYE before the additional PAYE).

Fourthly, choose one or more employers or pension funds to deduct the shortfall by way of additional monthly PAYE deductions over the remainder of the tax year. 

​Taxable Income (R)

Rate of Tax (R)

0 to 226 000

​18% of taxable income

​226 001 to 353 100

​40 680 + 26% of taxable income above 226 000

​353 101 to 488 700

​73 726 + 31% of taxable income above 353 100

488 701 to 641 400

​115 762 + 36% of taxable income above 488 700

​641 401 to 817 600

​170 734 + 39% of taxable income above 641 400

​817 601 to 1 731 600

​239 452 + 41% of taxable income above 817 600

1 731 601 and above

​614 192 + 45% of taxable income above 1 731 600



Below 65​

​R16 425

​65 to below 75

​(R16 425 + R9 000) = R25 425

​75 and over

​(R16 425 + R9 000 + R2 997) = R28 422

Who to contact for more information?

For more information call the SARS Contact Centre on 0800 00 7277, or visit your nearest SARS branch, remember to book an appointment first.

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