i What this calculator does
A marginal tax rate calculator answers the question that matters when you make a trading profit: how much of it do you keep. Your salary sets the bracket you start in, and the profit is taxed on top of it.
If SARS treats your trading as revenue rather than capital, the profit is added to your other income. A R50,000 gain can therefore be worth R39,500 to one person and R27,500 to another, purely because of where their salary already put them.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
Frequently asked questions
What is the difference between marginal and effective rate?
The marginal rate is what your next rand of income is taxed at. The effective rate is total tax divided by total income, which is always lower because the earlier brackets are taxed at lower rates. For deciding whether a trade is worth taking, the marginal rate is the relevant one.
How do I know whether SARS sees my trading as revenue or capital?
There is no fixed holding period. SARS looks at intention and the pattern of behaviour: frequency, use of leverage, holding period, and whether the activity is run like a business. Frequent leveraged trading almost always falls on the revenue side.
Does a bigger profit push my whole income into a higher bracket?
No. Only the portion above the bracket threshold is taxed at the higher rate. That is what the calculation here shows: the tax attributable to the profit, rather than a recalculation of everything you earn.
Can I reduce the rate by contributing more to retirement?
Up to a point. Contributions are deductible to 27.5% of the greater of taxable income or remuneration, capped at R350,000 a year. Increasing contributions lowers taxable income and can move you back into a lower bracket.
Is the R40,000 exclusion annual?
Yes, the annual capital gains exclusion applies once per tax year across all your capital gains, not per transaction. It only applies if the gain is capital in nature.
What about losses?
Revenue losses can generally be offset against other income, subject to ring-fencing rules for certain activities. Capital losses can only be offset against capital gains. That asymmetry is one reason the classification matters.
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