Understanding South African Income Tax Brackets (2026/2027)
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South Africa uses a progressive tax system, meaning the more you earn, the higher the rate at which your income is taxed. For the 2026/2027 tax year (1 March 2026 to 28 February 2027), SARS applies 7 tax brackets ranging from 18% to 45%.
How Progressive Tax Brackets Work
A common misconception is that if you fall into the 31% tax bracket, all your income is taxed at 31%. In reality, only the income within that specific bracket is taxed at that rate. Your income is divided across brackets, with each portion taxed at its corresponding rate.
2026/2027 Tax Brackets
The bracket thresholds are higher than in 2025/2026, which gives some relief from bracket creep. The SARS tax table for individuals for the 2026/2027 tax year is as follows:
| Taxable income | Rate of tax |
|---|---|
| R0 – R245,100 | 18% of taxable income |
| R245,101 – R383,100 | R44,118 + 26% of amount above R245,100 |
| R383,101 – R530,200 | R79,998 + 31% of amount above R383,100 |
| R530,201 – R695,800 | R125,599 + 36% of amount above R530,200 |
| R695,801 – R887,000 | R185,215 + 39% of amount above R695,800 |
| R887,001 – R1,878,600 | R259,783 + 41% of amount above R887,000 |
| R1,878,601 and above | R666,339 + 45% of amount above R1,878,600 |
Source: SARS Rates of Tax for Individuals, 2026/2027 tax year (Budget 2026).
2025/2026 Tax Brackets
For comparison, the SARS tax table for individuals for the 2025/2026 tax year was as follows:
| Taxable income | Rate of tax |
|---|---|
| R0 – R237,100 | 18% of taxable income |
| R237,101 – R370,500 | R42,678 + 26% of amount above R237,100 |
| R370,501 – R512,800 | R77,362 + 31% of amount above R370,500 |
| R512,801 – R673,000 | R121,475 + 36% of amount above R512,800 |
| R673,001 – R857,900 | R179,147 + 39% of amount above R673,000 |
| R857,901 – R1,817,000 | R251,258 + 41% of amount above R857,900 |
| R1,817,001 and above | R644,489 + 45% of amount above R1,817,000 |
Source: SARS Rates of Tax for Individuals, 2025/2026 tax year.
Want your own number? The income tax calculator applies these brackets to your salary.
Tax Rebates
Rebates directly reduce your calculated tax liability. They are not deductions from taxable income.
| Rebate | 2025/2026 | 2026/2027 |
|---|---|---|
| Primary (all taxpayers) | R17,235 | R17,820 |
| Secondary (65 and older) | R9,444 | R9,765 |
| Tertiary (75 and older) | R3,145 | R3,249 |
Tax Thresholds
The tax threshold is the income level below which no tax is payable. These are derived from the rebates.
| Age | 2025/2026 | 2026/2027 |
|---|---|---|
| Under 65 | R95,750 | R99,000 |
| 65 to 74 | R148,217 | R153,250 |
| 75 and older | R165,689 | R171,300 |
Retirement Contributions
Contributions to approved retirement funds (pension, provident, or retirement annuity) are tax deductible up to 27.5% of the greater of your remuneration or taxable income, subject to an annual cap. The cap is R430,000 for 2026/2027, up from R350,000 in 2025/2026.