I’m Paying Too Much Tax on My Salary – When Will I Get It Back from SARS?
This is a common concern for many salaried employees. You look at your payslip each month and wonder, “Why is so much tax being deducted?” It can be frustrating, especially when you feel that your employer isn’t accounting for all the possible deductions that could reduce your tax burden. The question then arises: will SARS ever give any of that tax back?
🧾 Why You Pay PAYE
South Africa’s tax system uses Pay-As-You-Earn (PAYE), which means your employer deducts tax from your salary each month based on SARS’s tax tables. This is designed to ensure that you don’t owe a large lump sum of tax at the end of the year. However, sometimes you may feel like too much tax is being deducted, especially if your employer hasn’t factored in some of your personal deductions, which could lower the amount of tax you owe.
In the PAYE system, your employer takes care of the tax calculations for you, but they only have access to the information they’re given. For example, if you’re making contributions to a retirement annuity or have medical expenses that exceed what’s covered by your medical aid, these may not be accounted for when calculating your tax at the source.
If you have more than one employer, each employer only works out the PAYE based on the salary they pay you. However, SARS will aggregate the income and workout the tax on the aggregated income.
✅ I’m Paying Too Much Tax on My Salary – Will You Get a Refund?
The good news is that, yes, you may be entitled to a refund when you submit your annual tax return — typically between July and January. The refund usually occurs if one of the following applies:
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Overpayment of PAYE: If you’ve paid more tax than necessary during the year, you’re eligible for a refund when you file your tax return.
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Unaccounted deductions: If your employer hasn’t included deductions like retirement annuity contributions, medical expenses, or other eligible tax credits, you can claim these on your tax return, which could result in a refund.
Some common scenarios in which you’re more likely to receive a refund include:
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Contributing to a retirement annuity (RA): Contributions to an RA are tax-deductible, which means they reduce your taxable income.
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Medical expenses not covered by your medical aid: These expenses may qualify for tax credits, reducing your tax liability.
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Travel allowance: If you receive a travel allowance and have kept a valid logbook, you can claim deductions for business travel.
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Donations to SARS-approved charities (Section 18A): Donations to registered charities are tax-deductible, which can further reduce your taxable income.
It’s important to note that if SARS finds that your employer under-deducted PAYE throughout the year, you may owe money instead of getting a refund.
💡 How Salaried Employees Can Reduce Tax
Fortunately, there are several strategies available to reduce your overall tax burden and potentially increase your refund. Some practical and legal options include:
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Contribute to a Retirement Annuity (RA): You can deduct up to 27.5% of your taxable income (up to R350,000 per year) by contributing to an RA. This directly reduces the amount of tax you owe to SARS.
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Claim Medical Expenses: If you’ve paid out-of-pocket medical costs for yourself or your dependants that aren’t covered by your medical aid, you may be able to claim additional medical tax credits.
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Logbook for Travel Claims: If you receive a travel allowance, you can only claim deductions for business travel. Ensure you maintain a valid logbook that tracks your business-related trips. Without a logbook, you won’t be eligible for these deductions.
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Donate to Section 18A Charities: Donations to qualifying charities are tax-deductible, with a limit of 10% of your taxable income.
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Work with a Tax Professional: If you have multiple income sources, investments, or rental income, it’s a good idea to consult with a registered tax practitioner. They can help you maximise your refund, ensure compliance, and reduce your liability.
⏱️ I’m Paying Too Much Tax on My Salary- When Will I Get the Refund?
If SARS owes you money and your return isn’t flagged for review or audit, the refund will typically be paid within 1–3 weeks after the assessment is completed. However, if your tax return is flagged, it could take longer.
👥 Final Thought
I’m Paying Too Much Tax on My Salary – what are my options?
It’s not just about how much you earn — it’s about how well you plan. Understanding the tax system, keeping track of your deductions, and planning ahead can ensure that you don’t overpay. If you’re unsure about your tax situation or want assistance in reviewing your deductions, chat to us. We can help you navigate the system and ensure that you get the maximum benefit from your tax return. Reach out to us today for expert advice on your tax planning.
Let us help you get the most out of your salary and reduce the stress of overpaying.