|AIDS Levy ( of Pre-Levy Liability)|
|Total Tax Liability|
|Take Home Pay|
|Marginal Tax Rate|
|Effective Tax Rate|
How Is The Tax Calculated
In line with the note, I'm using a simplified version of the how ZIMRE calculates PAYE taxes:
Find your gross_income
Find the tax bracket your gross income falls in for the specified period, that is between the lower and upper value, and note the rate and deduct.
Calculate your pre-levy liability by multiplying your gross income by the rate and subtract the product by the deduct value. You should end up with this formula:
pre-levy liability = (gross income × rate) − deduct
Multiply the pre-levy liability by the aids levy rate (currently at 3%) to get the aids levy
Add the aids levy to the pre-tax liability to get the tax liability.