and income tax calculator
| Yearly Income (N$) | Rates of tax |
|---|---|
| 0 - 50 000 | Not taxable |
| 50 001 - 100 000 | 18% for each N$ above 50 000 |
| 100 001 - 300 000 | 9 000 + 25% for each N$ above 100 000 |
| 300 001 - 500 000 | 59 000 + 28% for each N$ above 300 000 |
| 500 001 - 800 000 | 115 000 + 30% for each N$ above 500 000 |
| 800 001 - 1 500 000 | 205 000 + 32% for each N$ above 800 000 |
| Above 1 500 000 | 429 000 + 37% for each N$ above 1 500 000 |
John earns a basic salary of N$30,000 per month. To calculate his monthly PAYE amount, first ascertain the expected yearly income:
30,000 x 12 = N$360,000
According to the tax brackets John must pay a base of N$59,000 tax per year, since he is in the 300,001 - 500,000 range, we also need to calculate the % on the amount above 300,000:
(360,000 - 300,000) * 0.28 = N$16,800
This means John has to pay a total yearly tax of N$75,800 (N$59,000 + N$16,800) and monthly:
75,800 / 12 = N$6,316.67
When John receives his monthly salary from his employer, the employer would have deducted this tax amount for him already for PAYE, and John would receive N$23,683.33 in his bank account.