How much income tax do you pay in South Africa?
South Africa taxes personal income in seven brackets, from 18% to 45% — and a rebate makes the first slice tax-free: below R99,000 a year (under 65), you pay no income tax at all in 2026/27.
Your marginal rate is the tax on your next rand. Your effective rate — total tax as a share of income — is always lower.
How the brackets actually work
The system is progressive: each bracket taxes only the slice of income inside it. Crossing into a higher bracket never makes your take-home smaller — only the rand above the line are taxed at the higher rate. The "I got a raise and now earn less" story is a myth, every time.
The 2026/27 table (1 March 2026 – 28 February 2027)
These brackets apply to taxable income — for most salaried people, roughly gross salary minus retirement contributions.
- Up to R245,100 — 18% of taxable income
- R245,101 to R383,100 — R44,118 + 26% of the amount above R245,100
- R383,101 to R530,200 — R79,998 + 31% of the amount above R383,100
- R530,201 to R695,800 — R125,599 + 36% of the amount above R530,200
- R695,801 to R887,000 — R185,215 + 39% of the amount above R695,800
- R887,001 to R1,878,600 — R259,783 + 41% of the amount above R887,000
- Above R1,878,600 — R666,339 + 45% of the amount above R1,878,600
Rebates: the tax-free slice
Every taxpayer gets the primary rebate of R17,820 a year subtracted from their calculated tax. From 65 a further R9,765 is added, and from 75 another R3,249.
That's what creates the tax-free thresholds for 2026/27: R99,000 (under 65), R153,250 (65–74) and R171,300 (75+). Below your threshold, the rebate wipes the tax out entirely.
Marginal vs effective — the two rates people mix up
Take taxable income of R500,000 (under 65). The table gives tax of R116,237; subtract the rebate and the year costs R98,417. The marginal rate is 31% — but the effective rate is 19.7%. Nobody pays their marginal rate on everything; the first slices are always taxed at the lower bands.
What legally shrinks the number
A handful of allowances exist precisely to be used:
- Retirement contributions — deductible up to 27.5% of income, capped at R430,000 a year (2026/27)
- Medical scheme fees tax credit — R376 a month for each of the first two members, R254 for each additional dependant
- Interest exemption — the first R23,800 of interest income tax-free (R34,500 from 65)
- Tax-free savings accounts — growth and withdrawals outside the tax net entirely (R46,000 a year limit)
Try it with your own numbers
Enter your annual taxable income and age band. The calculator applies the 2026/27 SARS brackets and rebates to show your tax for the year and per month, your marginal rate, and your effective rate. Inputs stay on your device.
Your numbers stay on your device — nothing you type here is sent or stored. This is a generic guideline calculation, not advice. For advice, speak to a vetted, FSCA-registered planner.
Terms used on this page
- rebate
- A fixed amount SARS subtracts from your calculated tax each year. It is what makes the first slice of income effectively tax-free.
- marginal rate
- The tax rate on your next rand of income — the bracket the top slice of your income falls into.
- effective rate
- Your total tax divided by your total income — the share of everything you earned that went to tax. Always lower than your marginal rate.
- taxable income
- The income tax is calculated on, after allowed deductions. For most salaried people it is roughly gross salary minus retirement contributions.
Reviewed July 2026 · 2026/27 tax year figures