Taming Taxes: The Ultimate Guide to Choosing a Tax Calculator for South African Side Hustlers
Key takeaways
- Simplicity is key: A user-friendly tax calculator saves time and reduces mistakes, crucial when you're managing multiple income streams.
- Stay updated: Ensure your calculator uses the latest SARS tax brackets to avoid miscalculations.
- Maximise deductions: Don’t miss out on tax savings from medical aid contributions, retirement fund deductions, and other allowable expenses.
Juggling a full-time job and a side hustle? You’re not alone! Extra income is fantastic, but when tax season rolls around, managing multiple income streams can be daunting.
I’ve been there—staring at spreadsheets late into the night, trying to make sense of SARS forms while building Onemoola in my spare time. That’s when I discovered the power of a good tax calculator. It’s not just about calculating what you owe; it’s about minimising your tax burden, maximising deductions, and keeping more of your hard-earned cash.
If you’re a South African side hustler looking to take control of your tax situation, here’s what to look for in a tax calculator.
Simplicity is Key for Busy Side Hustlers
When you’re racing between meetings and squeezing in work for your side gig after hours, the last thing you need is a complicated tax calculator. You want something that’s intuitive and easy to use, not something that makes you more confused than when you started.
The best calculators use clear language and guide you step-by-step through the process. Onemoola’s tax calculator was designed with simplicity in mind, offering a user-friendly experience even if you’re not a tax expert.
Stay Ahead with Updated Tax Brackets
Tax laws in South Africa change regularly, and what applied last year might not apply this year. That’s why it’s crucial to have a tax calculator that reflects the latest SARS tax brackets. You can always check the most recent tax rates on the SARS website, but your tax calculator should automatically update with these changes.
Using outdated tax brackets can lead to mistakes, like underestimating or overestimating what you owe. Onemoola’s calculator ensures your calculations are always accurate by staying up-to-date with the latest brackets.
Unlocking Tax Savings with Medical Aid Contributions
Contributing to a medical aid scheme can reduce your taxable income, and you can also claim medical tax credits (MTCs). Many people with multiple income streams miss out on these valuable savings.
What’s an MTC?
An MTC is a rebate that reduces your income tax liability. Think of it as a reward for looking after your health and contributing to a registered medical aid. The credit applies to the fees you pay for yourself and your dependants.
For the 2024/2025 tax year, the MTC is R364 per month for the main member and the first dependant. For each additional dependant, the credit is R246 per month. But remember, the MTC is non-refundable, so if your credit exceeds your tax liability, you won’t get a cash refund, and it can’t be carried over to the next year.
A good tax calculator will factor in both your medical aid contributions and your MTC, giving you a clear view of your potential tax savings. Onemoola’s calculator allows you to easily input your medical aid details and see the impact on your tax.
Maximising Deductions and Avoiding Tax Traps
As a side hustler, you have a unique opportunity to maximise your deductions and minimise your tax bill. But to do that, you need to understand the rules and avoid common pitfalls. This is where a good tax calculator can be invaluable, helping you identify and track potential deductions.
In addition to medical aid contributions and retirement fund contributions, there are other expenses you might be able to deduct, depending on the nature of your side hustle. These can include:
- Home office expenses: If you work from home, you might be able to claim a portion of your rent, utilities, and internet costs.
- Work-related travel: If your side hustle involves travel, you can deduct expenses like fuel, accommodation, and meals.
- Business expenses: This can include things like office supplies, marketing costs, and professional fees.
It’s essential to keep accurate records of your expenses and consult with a tax professional if you’re unsure about what you can claim. Onemoola’s calculator helps you keep track of your deductions, making tax season less stressful.
Retirement Fund Contributions
One deduction you shouldn’t overlook is your contributions to retirement funds. These contributions can lower your taxable income, helping you save for the future while reducing your current tax bill.
How much can you deduct?
The deduction for retirement fund contributions is based on Section 11F of the Income Tax Act. In simple terms, it’s the lesser of:
- R350,000 for the 2024/2025 tax year, or
- 27.5% of your taxable income, which includes your salary, side hustle income, and other taxable income but excludes certain lump sum benefits.
Important Considerations:
- 12-month rule: Even if your tax year is less than 12 months, the R350,000 limit applies.
- Types of funds: This deduction covers contributions to pension funds, provident funds, and retirement annuities.
Onemoola’s calculator ensures you’re accounting for all your deductions, including retirement fund contributions, so you don’t end up overpaying your taxes.
The Power of Flexibility for Multiple Income Streams
If you have more than one source of income—whether it’s from a full-time job, freelance gigs, or your side hustle—you need a tax calculator that can handle them all. One that’s designed for a single salary simply won’t cut it.
Onemoola’s calculator allows you to input all your income sources, giving you a comprehensive and accurate view of your tax liability across all earnings.
Why Understanding Tax Brackets Matters (Especially with a Side Hustle)
With more than one income stream, it’s easy to land in a higher tax bracket without realising it. This is where a good tax calculator becomes essential.
Here’s a look at the current tax brackets for the 2025 tax year (1 March 2024 – 28 February 2025):
| Taxable income (R) | Rates of tax (R) |
|---|---|
| 1 – 237,100 | 18% of taxable income |
| 237,101 – 370,500 | 42,678 + 26% of taxable income above 237,100 |
| 370,501 – 512,800 | 77,362 + 31% of taxable income above 370,500 |
| 512,801 – 673,000 | 121,475 + 36% of taxable income above 512,800 |
| 673,001 – 857,900 | 179,147 + 39% of taxable income above 673,000 |
| 857,901 – 1,817,000 | 251,258 + 41% of taxable income above 857,900 |
| 1,817,001 and above | 644,489 + 45% of taxable income above 1,817,000 |
As your total income increases, you might move into a higher tax bracket, meaning a larger portion of your income will be taxed at a higher rate. A tax calculator like Onemoola’s helps you track your tax liability and explore strategies to minimise it.
Ready to Conquer Tax Season with Confidence?
Tired of the stress that comes with tax season? Onemoola’s tax calculator simplifies everything—from tracking your deductions to managing your side hustle income. With Onemoola, you can maximise your deductions, stay up to date with tax laws, and keep more of your hard-earned cash.