South Africa Income Tax Brackets and Rates (2027 Tax Year)
⚠️ Disclaimer: For general information only — not tax, financial, legal, or medical advice. Figures may be outdated or incorrect; tax rules change frequently. Verify important decisions with the CRA/IRS or a qualified professional (for health topics, a licensed healthcare provider). You use this information at your own risk.
The short answer
South Africa uses progressive marginal tax rates from 18% to 45%. For the 2027 year of assessment (1 March 2026 – 28 February 2027), the brackets were adjusted upward in the 2026 Budget: the 18% band now covers taxable income up to R245,100, and the tax-free threshold for under-65s rose to R99,000 thanks to a bigger primary rebate of R17,820.
The 2027 tax tables
| Taxable income (R) | Marginal rate |
|---|---|
| 1 – 245,100 | 18% |
| 245,101 – 383,100 | 26% |
| 383,101 – 530,200 | 31% |
| 530,201 – 695,800 | 36% |
| 695,801 – 887,000 | 39% |
| 887,001 – 1,878,600 | 41% |
| 1,878,601 and above | 45% |
Rebates (deducted from the tax calculated): primary R17,820 (everyone); secondary R9,765 (age 65+); tertiary R3,249 (age 75+).
Tax thresholds (pay no tax below): under 65: R99,000; 65–74: R153,250; 75 and older: R171,300.
Worked example: R500,000 taxable income (under 65)
- 18% × 245,100 = R44,118
- 26% × (383,100 − 245,100) = R35,880
- 31% × (500,000 − 383,100) = R36,239
- Gross tax = R116,237; less primary rebate R17,820 → tax payable R98,417 (effective rate about 19.7%).
Note this is tax on taxable income — after deductions such as retirement fund contributions (up to 27.5% of remuneration, capped at R350,000 per year).
How tax is collected
- PAYE: employers deduct pay-as-you-earn tax monthly from salaries, using the tables above.
- UIF: employees pay an extra 1% of salary to the Unemployment Insurance Fund (employers match it).
- Provisional tax: freelancers and the self-employed pay estimated tax twice a year instead of PAYE.
Frequently asked questions
Do the same rates apply to foreigners?
Yes — the rate table is the same for residents and non-residents. The difference is scope: residents are taxed on worldwide income, non-residents only on South African-source income.
What were last year's figures?
For the 2026 year of assessment (ended 28 February 2026) the brackets were unchanged from the prior year: 18% up to R237,100, top rate 45% above R1,817,000, with rebates of R17,235/R9,444/R3,145 and thresholds of R95,750/R148,217/R165,689.
Is there a separate tax for capital gains?
Capital gains are not taxed separately — 40% of the net gain is included in taxable income for individuals and taxed at your marginal rate (so the maximum effective CGT rate is 18%).
Where do I check the official tables?
SARS publishes the official rates page ("Rates of Tax for Individuals") and the annual Budget tax guide at sars.gov.za — always confirm before filing.
Sources
- https://www.sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/ (SARS — official rates of tax for individuals)
- https://www.sars.gov.za/about/sars-tax-and-customs-system/budget/budget-2026-frequently-asked-questions/ (SARS — Budget 2026 FAQ: 2027-year thresholds R99,000/R153,250/R171,300 and rebates)
- https://www.sars.gov.za/types-of-tax/personal-income-tax/ (SARS — personal income tax overview)
← Previous
How to File Taxes in South Africa: Registration, eFiling and Tax Season
Next →
South Africa Tax Residency Guide: Who Counts as a Tax Resident?
('Disclaimer — please read. This article is for general information and educational purposes only. It is not tax, accounting, legal, financial, immigration, medical, dental, or health advice, and reading it does not create a professional or client relationship between you and Llandora. Tax and immigration rules change frequently and differ by country, province/state, and personal circumstances; figures, thresholds, and examples in this article may be outdated, incomplete, or incorrect, and may not apply to your situation. Always verify current rules with the official sources (CRA, IRS, IRCC, USCIS) and consult a licensed professional before making any decision. Content about health, medical, or dental topics is general information only and is not a substitute for professional medical advice, diagnosis, or treatment — always seek the advice of a qualified healthcare provider with any questions about a medical condition. Llandora makes no warranty of any kind — express or implied — about the accuracy, completeness, reliability, or timeliness of this content. To the fullest extent permitted by law, Llandora disclaims all liability for any loss, damage, cost, or expense arising from errors or omissions in this article or from any action taken or not taken in reliance on it, whether direct, indirect, incidental, or consequential. You rely on this article entirely at your own risk.', 'Disclaimer — please read. This article is for general information and educational purposes only. It is not tax, accounting, legal, financial, immigration, medical, dental, or health advice, and reading it does not create a professional or client relationship between you and Llandora. Tax and immigration rules change frequently and differ by country, province/state, and personal circumstances; figures, thresholds, and examples in this article may be outdated, incomplete, or incorrect, and may not apply to your situation. Always verify current rules with the official sources (CRA, IRS, IRCC, USCIS) and consult a licensed professional before making any decision. Content about health, medical, or dental topics is general information only and is not a substitute for professional medical advice, diagnosis, or treatment — always seek the advice of a qualified healthcare provider with any questions about a medical condition. Llandora makes no warranty of any kind — express or implied — about the accuracy, completeness, reliability, or timeliness of this content. To the fullest extent permitted by law, Llandora disclaims all liability for any loss, damage, cost, or expense arising from errors or omissions in this article or from any action taken or not taken in reliance on it, whether direct, indirect, incidental, or consequential. You rely on this article entirely at your own risk.', "Avertissement — à lire attentivement. Cet article est fourni à titre informatif et pédagogique uniquement. Il ne constitue pas un conseil fiscal, comptable, juridique, financier, en immigration, médical, dentaire ou en santé, et sa lecture ne crée aucune relation professionnelle ou client entre vous et Llandora. Les règles fiscales et d'immigration changent fréquemment et varient selon le pays, la province/l'État et la situation personnelle ; les chiffres, seuils et exemples de cet article peuvent être obsolètes, incomplets ou inexacts, et peuvent ne pas s'appliquer à votre situation. Vérifiez toujours les règles en vigueur auprès des sources officielles (CRA, IRS, IRCC, USCIS) et consultez un professionnel agréé avant de prendre toute décision. Les contenus relatifs à la santé, à la médecine ou aux soins dentaires sont fournis à titre informatif uniquement et ne remplacent pas un avis médical professionnel, un diagnostic ou un traitement — consultez toujours un professionnel de la santé qualifié pour toute question d'ordre médical. Llandora n'offre aucune garantie, expresse ou implicite, quant à l'exactitude, l'exhaustivité, la fiabilité ou l'actualité de ce contenu. Dans toute la mesure permise par la loi, Llandora décline toute responsabilité pour toute perte, tout dommage, tout coût ou toute dépense découlant d'erreurs ou d'omissions dans cet article ou de toute action entreprise ou non entreprise sur la foi de son contenu, qu'ils soient directs, indirects, accessoires ou consécutifs. Vous vous fiez à cet article entièrement à vos propres risques.", 'Aviso legal — léalo con atención. Este artículo es solo para fines informativos y educativos. No constituye asesoramiento fiscal, contable, legal, financiero, migratorio, médico, dental ni de salud, y su lectura no crea una relación profesional o de cliente entre usted y Llandora. Las reglas fiscales y migratorias cambian con frecuencia y varían según el país, la provincia/estado y las circunstancias personales; las cifras, umbrales y ejemplos de este artículo pueden estar desactualizados, incompletos o ser incorrectos, y pueden no aplicarse a su situación. Verifique siempre las reglas vigentes con las fuentes oficiales (CRA, IRS, IRCC, USCIS) y consulte a un profesional autorizado antes de tomar cualquier decisión. El contenido sobre temas de salud, médicos o dentales es solo información general y no sustituye el consejo, diagnóstico o tratamiento médico profesional: consulte siempre a un profesional de la salud calificado ante cualquier duda médica. Llandora no ofrece ninguna garantía, expresa o implícita, sobre la exactitud, integridad, fiabilidad u oportunidad de este contenido. En la máxima medida permitida por la ley, Llandora rechaza toda responsabilidad por cualquier pérdida, daño, costo o gasto derivado de errores u omisiones en este artículo o de cualquier acción realizada o no realizada basándose en él, ya sean directos, indirectos, incidentales o consecuentes. Usted confía en este artículo enteramente bajo su propio riesgo.')