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SARS tax brackets South Africa 2026 2027 income tax table with 7 brackets from 18 percent to 45 percent

Tax Brackets South Africa 2026/2027: Complete SARS Income Tax Guide

📄 SARS INCOME TAX  |  2026/2027 UPDATED

Tax Brackets South Africa 2026/2027: Complete SARS Income Tax Guide

All 7 income tax brackets, rebates, thresholds and worked examples — updated for the March 2026 Budget.

📅 Updated 16 May 2026 🕑 9 min read ✅ 2026/2027 Tax Year 🇮🇦 South Africa
⚡ Quick Answer — Tax Brackets South Africa

South Africa has 7 progressive income tax brackets for 2026/2027, ranging from 18% on income up to R245,100 to 45% on income above R1,878,600. Taxpayers under 65 pay zero tax below R99,000 due to the primary rebate of R17,820. Brackets increased 3.4% from 1 March 2026 following the Budget Speech on 25 February 2026.

📄 What’s In This Guide
01 · Understanding the System

How Progressive Tax Works in South Africa

South Africa uses a progressive income tax system, which means the more you earn, the higher the rate applied — but only on the portion of income that falls within each bracket. You never pay the top rate on your entire salary.

Think of your income as being stacked in layers. The first layer (up to R245,100) is always taxed at 18%. The next layer (R245,101 to R383,100) is taxed at 26%. Each additional layer is taxed at a higher rate, right up to 45% for the portion above R1,878,600.

💡 Common Misconception Fixed: If your income puts you in the 36% bracket, only the portion above R530,200 is taxed at 36%. The rand from R1 to R245,100 is still taxed at 18%. This is why your effective tax rate is always lower than your marginal rate.
7
Tax brackets in South Africa 2026/2027
18%
Lowest tax rate (income up to R245,100)
45%
Highest rate (income above R1,878,600)
02 · The Numbers

2026/2027 Tax Brackets South Africa — Full Table

These are the official SARS income tax brackets effective 1 March 2026, as announced in the 2026 Budget Speech. South Africa tax rates were increased by 3.4% from the previous year to partially offset inflation.

# Taxable Income (Annual) Rate Tax on This Bracket Cumulative Tax at Top
1 R0 – R245,100 18% 18% of income R44,118
2 R245,101 – R383,100 26% R44,118 + 26% above R245,100 R79,998
3 R383,101 – R530,200 31% R79,998 + 31% above R383,100 R125,599
4 R530,201 – R695,800 36% R125,599 + 36% above R530,200 R185,215
5 R695,801 – R887,000 39% R185,215 + 39% above R695,800 R259,853
6 R887,001 – R1,878,600 41% R259,853 + 41% above R887,000 R666,494
7 Above R1,878,600 45% R666,494 + 45% above R1,878,600 —

Source: SARS Budget Tax Guide 2026, effective 1 March 2026. All figures before rebates.

📈 Calculate Your Exact Income Tax →

2025/2026 vs 2026/2027 Comparison

The 2026 Budget raised all brackets and rebates by 3.4% from 1 March 2026 — the first inflation-linked adjustment since 2023/2024. Here is how the first four brackets changed:

Bracket 2025/2026 Upper Limit 2026/2027 Upper Limit Increase
18% bracket R237,100 R245,100 +R8,000
26% bracket R370,500 R383,100 +R12,600
31% bracket R512,800 R530,200 +R17,400
36% bracket R673,000 R695,800 +R22,800
Primary rebate R17,235 R17,820 +R585
03 · Rebates & Thresholds

Tax-Free Thresholds & Rebates 2026/2027

SARS provides rebates that are deducted directly from your tax liability — not from your income. The primary rebate effectively means no tax is paid below the tax-free threshold. The older you are, the higher your total rebate and the higher your tax-free income.

Primary Rebate
R17,820
Applies to all taxpayers under 65.
Tax-free threshold: R99,000
Secondary Rebate (65+)
R9,444
Additional rebate for ages 65–74.
Total rebate: R27,264 | Threshold: R153,100
Tertiary Rebate (75+)
R3,145
Additional rebate for ages 75+.
Total rebate: R30,409 | Threshold: R171,000
How thresholds are calculated: The tax-free threshold is not a deduction from income. It is the income level at which the 18% tax exactly equals the primary rebate. R99,000 × 18% = R17,820 = primary rebate. So taxpayers earning below R99,000 have a tax liability that is fully cancelled by the rebate.
04 · Medical Aid

Medical Aid Tax Credit South Africa 2026/2027

In addition to the standard rebates, South African taxpayers who belong to a registered medical scheme receive a Medical Scheme Fees Tax Credit (MTC). This credit is deducted directly from your tax liability — it is not just a deduction from income, making it significantly more valuable.

👤 First Two Beneficiaries
R376 / month each

R4,512 per year per person for the main member and one dependant. Increased from R364/month in 2025/2026 (3.3% increase).

👥 Each Additional Beneficiary
R254 / month each

R3,048 per year for each additional dependant beyond the first two. Increased from R246/month in 2025/2026.

🏠 Example: Family of 4 on Medical Aid
Main member (R376/month × 12)R4,512
First dependant (R376/month × 12)R4,512
Second dependant (R254/month × 12)R3,048
Third dependant (R254/month × 12)R3,048
Total annual tax credit (off your tax bill)R15,120

A family of four with medical aid members saves R15,120 per year directly off their tax bill — not just from taxable income. This credit applies regardless of which tax bracket you are in.

05 · Real Calculations

How to Calculate Your Income Tax — 3 Worked Examples

These examples show the step-by-step calculation of South Africa income tax for three common income levels. All figures are for the 2026/2027 tax year (1 March 2026 – 28 February 2027), for an individual under 65 with no other deductions.

🆕 Example 1 — Taxable Income R200,000/year
18% on R200,000 (Bracket 1 only)R36,000
Less: Primary rebate−R17,820
✔ Annual tax payableR18,180
Monthly PAYE deductionR1,515/month
Effective tax rate9.09%
🆕 Example 2 — Taxable Income R450,000/year
18% on R245,100 (Bracket 1)R44,118
26% on R138,000 (R245,101 to R383,100)R35,880
31% on R66,900 (R383,101 to R450,000)R20,739
Gross taxR100,737
Less: Primary rebate−R17,820
✔ Annual tax payableR82,917
Monthly PAYE deductionR6,910/month
Effective tax rate18.43%
Marginal rate (your top bracket)31%
🆕 Example 3 — Taxable Income R800,000/year
18% on R245,100 (Bracket 1)R44,118
26% on R138,000 (Bracket 2)R35,880
31% on R147,100 (Bracket 3)R45,601
36% on R165,600 (Bracket 4)R59,616
39% on R104,200 (Bracket 5, up to R800K)R40,638
Gross taxR225,853
Less: Primary rebate−R17,820
✔ Annual tax payableR208,033
Monthly PAYE deductionR17,336/month
Effective tax rate26.00%
Marginal rate (your top bracket)39%
📈 Use Our Free Income Tax Calculator →
06 · Key Concepts

Marginal vs Effective Tax Rate Explained

Two of the most misunderstood terms in South African tax. Knowing the difference changes how you plan your salary, bonuses, and deductions.

Annual Income Marginal Rate Effective Rate Tax Saving Per R1,000 RA
R200,000 18% 9.1% R180
R360,000 (R30K/month) 26% 15.6% R260
R450,000 31% 18.4% R310
R600,000 36% 24.1% R360
R800,000 39% 26.0% R390
R1,000,000 41% 30.1% R410
Why this matters for deductions: The “Tax Saving Per R1,000 RA” column shows your marginal rate in rands. A taxpayer in the 36% bracket saves R360 in tax for every R1,000 contributed to a retirement annuity. That is an immediate 36% return before any investment growth.
07 · Reduce Your Bracket

How Retirement Annuity Deductions Reduce Your Tax Bracket

A retirement annuity (RA) is the most powerful legal tax-reduction tool available to South African individuals. RA contributions are deductible from your taxable income before tax is calculated, which can move you into a lower bracket entirely.

📋 The 27.5% Rule (2026/2027): You can deduct RA contributions up to 27.5% of your taxable income or remuneration (whichever is greater), capped at R350,000 per year. Contributions above this limit roll over to the following tax year.
🌟 RA Example — Income R530,000 (sitting in Bracket 4 at 36%)
Annual taxable incomeR530,000
RA contribution (27.5% = R145,750)−R145,750
New taxable incomeR384,250
New marginal rate (now in Bracket 3)31% (was 36%)
✔ Annual tax savingapprox. R29,300

By making the maximum RA contribution, this taxpayer drops from the 36% bracket into the 31% bracket, saving approximately R29,300 per year in income tax — while also building retirement savings that grow tax-free inside the RA.

🏭 Calculate Your RA Tax Saving →
08 · Employees

PAYE — How Your Employer Deducts Tax

If you are employed, your employer deducts Pay As You Earn (PAYE) from your salary each month and pays it directly to SARS on your behalf. PAYE is based on the current south africa tax rates applied to your annual income. PAYE is calculated based on your annual income tax liability divided into monthly instalments.

Monthly Gross Salary Annual Income Est. Monthly PAYE Monthly Take-Home*
R10,000 R120,000 R284 ~R9,616
R20,000 R240,000 R2,288 ~R17,512
R30,000 R360,000 R4,681 ~R25,019
R50,000 R600,000 R11,268 ~R38,232
R80,000 R960,000 R22,918 ~R56,582

*After PAYE and UIF (1%, capped at R177/month). No RA or other deductions assumed. Use our PAYE calculator for your exact figure.

UIF (Unemployment Insurance Fund): Both you and your employer contribute 1% of your monthly salary to UIF, capped at a maximum of R177.12 per month per party (based on the annual remuneration ceiling of R212,544). UIF is deducted separately from PAYE.
📊 Use Our Free PAYE Calculator →
09 · 2026 Budget

Budget 2026 Tax Changes & Bracket Creep Explained

On 25 February 2026, the South African Minister of Finance delivered the annual Budget Speech, announcing the first inflation-linked adjustment to income tax brackets South Africa has seen since 2023/2024.

✅ What SARS gave you
3.4%

Tax brackets and rebates were increased by 3.4% from 1 March 2026. This is a partial inflation adjustment.

⚠ Average salary increase
5–6%

Most South African employees received salary increases of 5–6% in 2026. The gap between 6% and 3.4% is “bracket creep.”

Bracket creep is the silent tax increase that happens when your salary grows faster than the tax brackets. If you received a 6% raise but brackets only went up 3.4%, the extra 2.6% of your salary is effectively taxed at a higher rate than before — even though your real purchasing power barely changed.

📋 Real impact example: A taxpayer earning R400,000 in 2025/2026 who received a 6% raise now earns R424,000 in 2026/2027. The bracket adjustment of 3.4% means more of that R424,000 falls into the 26% bracket instead of the 18% bracket compared to if full inflation (6%) had been applied. The effective extra tax cost is approximately R1,200–R2,000 per year for this income level.

Other 2026 Budget Tax Changes

Item 2025/2026 2026/2027 Change
Primary rebate R17,235 R17,820 +R585
Medical credit (first 2) R364/month R376/month +R12/month
Medical credit (additional) R246/month R254/month +R8/month
VAT rate 15% 15.5% +0.5%
CGT annual exclusion (individuals) R40,000 R40,000 No change
RA deduction cap R350,000 R350,000 No change

Sources: National Treasury Budget Review 2026, SARS Budget Tax Guide 2026 (released 25 February 2026).

10 · Frequently Asked Questions

Frequently Asked Questions — Tax Brackets South Africa

What is the tax-free threshold in South Africa for 2026/2027?
For the 2026/2027 tax year, South Africans under 65 pay no income tax on taxable income below R99,000. Taxpayers aged 65 to 74 have a threshold of R153,100, and those 75 and older have a threshold of R171,000. These thresholds are determined by the primary, secondary and tertiary rebates fully offsetting the 18% tax on the lowest bracket.
What are the 7 tax brackets in South Africa for 2026/2027?
South Africa has 7 income tax brackets for 2026/2027: 18% on income up to R245,100; 26% on R245,101 to R383,100; 31% on R383,101 to R530,200; 36% on R530,201 to R695,800; 39% on R695,801 to R887,000; 41% on R887,001 to R1,878,600; and 45% on income above R1,878,600. Each rate applies only to the income within that bracket, not your total salary.
What is the difference between marginal and effective tax rate?
Your marginal tax rate is the rate applied to your last rand of income — the bracket you currently sit in. Your effective tax rate is your total tax paid divided by your total income. For example, someone earning R450,000 has a marginal rate of 31% but an effective rate of only about 18.4%, because most of their income is taxed at the lower 18% and 26% rates on the first two brackets.
How much tax do I pay on a salary of R30,000 per month in South Africa?
On a gross monthly salary of R30,000 (R360,000 annual), your 2026/2027 PAYE tax is approximately R4,681 per month after the primary rebate. This gives an effective tax rate of around 15.6% and a monthly take-home of roughly R25,019 after PAYE and UIF (1%). No RA or other deductions assumed. Use our free PAYE calculator for your personalised figure.
What is the primary rebate in South Africa for 2026/2027?
The primary rebate for 2026/2027 is R17,820 per year. This is a fixed credit deducted from every taxpayer’s calculated tax liability, regardless of income level. Taxpayers aged 65 and older receive an additional secondary rebate of R9,444, and those 75 and older receive a further tertiary rebate of R3,145.
How does a retirement annuity reduce my tax bracket?
Retirement annuity (RA) contributions are tax-deductible up to 27.5% of your taxable income (capped at R350,000 per year). Because contributions reduce your taxable income before tax is calculated, they can move you into a lower bracket. A taxpayer in the 36% bracket saves R360 in tax for every R1,000 contributed to an RA. Use our retirement tax calculator to calculate your exact annual saving.
When do the 2026/2027 tax brackets take effect?
The 2026/2027 tax brackets took effect on 1 March 2026, as announced in the Budget Speech on 25 February 2026. Brackets and rebates were increased by 3.4% to partially offset inflation. The new rates apply to all income earned from 1 March 2026 to 28 February 2027.
What is bracket creep and does it affect South African taxpayers?
Bracket creep occurs when salary increases push more of your income into higher brackets, even though your real purchasing power has not kept pace with inflation. In 2026, South African salaries rose by an average of 5–6%, but SARS only adjusted brackets by 3.4%. The gap of roughly 2–2.5% means many taxpayers effectively paid more tax in real terms. The 2026 Budget was the first inflationary adjustment since 2023/2024.

Calculate Your Exact Tax — Free SARS Calculators

Use our free South African tax calculators to get your personalised PAYE, income tax, refund and retirement figures for 2026/2027.

📈 Income Tax Calculator 💼 PAYE Calculator 💵 Refund Calculator 🏭 Retirement Calculator

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