How tax brackets work - Tax 101

[@fabianmanuel6432]

Thanks for posting again Andre…also your responsiveness and openness to the comments is refreshing.

[@AndreBothmaTax]

Thanks Fabian

[@sibusisobottomane2735]

Brother Andre! Listening from LPH.

[@AndreBothmaTax]

Send my regards to the team

[@tshwaragananglebeko6455]

Thank you very much for this André. The example you made of R500k do you include benefits or are benefits taxed separately/differently? The tax free first R90k confused me a bit. I'll wait for a video that has calculations in it so that I can properly follow

[@incognito9909]

Hi Andre, appreciate the content. The video doesn't explain how the "marginal" tax works. Using that 450k marginal tax scenario, what would you be taxed? The marginal tax explained, how does it apply? I hope I am making sense.

[@AndreBothmaTax]

I can show calculations in another video, but I did explain that the 450k would be taxed at 18% and move up the tax brackets.

[@incognito9909]

What I'm gathering from your video. You are taxed per bracket? So 18% then 26% then 31%? I might not have articulated well but a tip would be to show the actual calculation, that way a viewer would see the application.

[@AndreBothmaTax]

Thanks for the tip

[@MzoliSteve]

Hi Andre. Does SARS apply the age-related tax rebates automatically when calculating my tax? Or do I subtract the rebate as a deduction on efiling? Thank for your answer?

[@AndreBothmaTax]

Age related rebates are automatically taken into account on the assessment after you submit your tax return.

[@stefanscheepers6737]

hierdie videos is befok! need more!

[@AndreBothmaTax]

Thanks Stefan!

[@ayoobabrahams1774]

Hi Andre I just need some clarity please with regards to the 91250 which is tax free, if I earned 250k do I only pay tax after the 91250 is deducted? Meaning only the remaining balance which is 158750 ?

[@AndreBothmaTax]

Correct. If you earn 250k, the first 91k would be covered by the annual rebate