and income tax calculator
| Yearly Income (N$) | Rates of tax |
|---|---|
| 0 - 100 000 | Not taxable |
| 100 001 - 150 000 | 18% for each N$ above 100 000 |
| 150 001 - 350 000 | 9 000 + 25% for each N$ above 150 000 |
| 350 001 - 550 000 | 59 000 + 28% for each N$ above 350 000 |
| 550 001 - 850 000 | 115 000 + 30% for each N$ above 550 000 |
| 850 001 - 1 550 000 | 205 000 + 32% for each N$ above 850 000 |
| Above 1 550 001 | 429 000 + 37% for each N$ above 1 550 000 |
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 350 001 - 550 000 range, we also need to calculate the % on the amount above 350,000:
(360,000 - 350,000) * 0.28 = N$2,800
This means John has to pay a total yearly tax of N$61,800 (N$59,000 + N$2,800) and monthly:
61,800 / 12 = 5,150
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$24,850 in his bank account.