Tax

Income Tax Calculator

Calculate your South African income tax, PAYE, and take-home pay.

Last reviewed: Tax year: 2026/2027Source: SARS — Rates of tax for individuals

How SA income tax works

South Africa uses a progressive tax system with seven brackets. The more you earn, the higher the rate applied to each additional rand above each threshold — but only to the portion of income within that bracket. Nobody pays their top bracket rate on their whole salary.

The tax your employer withholds from your salary each month is called PAYE (Pay As You Earn). It’s a running pre-payment of your annual income tax bill. At the end of the tax year (28/29 February), your total PAYE is reconciled against the actual tax you owe based on your annual income, deductions, and rebates. If too much was withheld, SARS refunds you; if too little, you pay in.

Everyone gets a primary rebate (R17,820 for 2026/2027) subtracted from the tax calculation. Taxpayers 65 and older get an additional secondary rebate (R9,765); 75+ get a tertiary rebate on top (R3,249). These are rand-for-rand reductions in tax owed — not deductions from income.

2026/2027 SARS income tax brackets

For the tax year running 1 March 2026 – 28 February 2027. The “base amount” is the total tax owed when your income is exactly at the bottom of that bracket — used to avoid re-adding the brackets below it.

2026/2027 SARS income tax brackets for individuals
Taxable incomeRates of tax
R0 – R245,10018% of taxable income
R245,101 – R383,100R44,118 + 26% of amount above R245,100
R383,101 – R530,200R79,998 + 31% of amount above R383,100
R530,201 – R695,800R125,599 + 36% of amount above R530,200
R695,801 – R887,000R185,215 + 39% of amount above R695,800
R887,001 – R1,878,600R259,783 + 41% of amount above R887,000
R1,878,601 and aboveR666,339 + 45% of amount above R1,878,600
Brackets were adjusted 3.4% for 2026/2027 — the first inflation relief since 2023/2024.

Rebates and tax thresholds

Rebates reduce the tax you owe after the brackets have been applied. The annual tax-free threshold is the income level at which your tax owed equals your rebate — below that you pay zero income tax.

2026/2027 rebates and thresholds
TaxpayerRebateTax threshold
Under 65R17,820 (primary)R99,000
65 – 74R27,585 (primary + secondary)R153,250
75 and overR30,834 (all three rebates)R171,300

Worked examples

Single earner on R30,000/month

Taxable salary R360,000/year, under 65, no medical scheme, no retirement contribution.

Taxable income
R360,000
Bracket 1 (0 – 245,100 at 18%)
R44,118
Bracket 2 (portion 245,100 – 360,000 at 26%)
R29,874
Gross tax
R73,992
Less primary rebate
−R17,820
Income tax for yearR56,172 (≈ R4,681 / month)

Higher earner on R60,000/month contributing R3,000/month to an RA

Gross salary R720,000/year, R36,000/year RA contribution (deductible up to 27.5% of remuneration).

Taxable income after RA deduction
R684,000
Bracket 1 (0 – 245,100 at 18%)
R44,118
Bracket 2 (245,100 – 383,100 at 26%)
R35,880
Bracket 3 (383,100 – 530,200 at 31%)
R45,601
Bracket 4 (portion 530,200 – 684,000 at 36%)
R55,368
Gross tax
R180,967
Less primary rebate
−R17,820
Income tax for yearR163,147

Retiree aged 67 on R20,000/month pension

Annual pension R240,000, no other income, age 65 – 74 tax bands apply.

Taxable income
R240,000
Bracket 1 (entire amount at 18%)
R43,200
Less primary + secondary rebate
−R27,585
Income tax for yearR15,615

What reduces your taxable income

These pre-tax deductions are subtracted from your gross income before the brackets are applied:

  • Retirement fund contributions (pension, provident, RA) — up to 27.5% of the greater of taxable income or remuneration, capped at R430,000/year for 2026/2027.
  • Donations to Section 18A-approved public benefit organisations — up to 10% of taxable income. Requires a Section 18A receipt from the charity.
  • Business or rental expenses — if you earn freelance, rental, or self-employed income, you can deduct expenses incurred in producing that income.
  • Travel allowance costs — if you receive a travel allowance and maintain a logbook, actual business travel costs or the deemed rate table can reduce taxable income.

What reduces your tax owed (rebates & credits)

  • Medical scheme fees tax credit (Section 6A) — R376/month for the main member and first dependant, R254/month for each additional dependant in 2026/2027.
  • Additional medical expenses credit (Section 6B) — a percentage of qualifying out-of-pocket medical expenses above a threshold, different rates for under 65 vs 65+.
  • Primary, secondary, tertiary rebates — automatic, based on your age.

How this calculator works

Enter your annual taxable income and age. The calculator applies the 2026/2027 SARS brackets progressively, subtracts your applicable rebates, adds back any monthly breakdown (PAYE and net take-home), and shows your marginal and effective tax rates. Optional inputs for retirement contributions and medical scheme members adjust the result using the official deduction cap and Section 6A credits.

The calculation runs entirely in your browser. Your income figures are never sent to any server. Switch the tax year dropdown on the calculator to see how the numbers would change against a prior SARS configuration — useful if you’re filing late or reconciling a previous year.

What this calculator doesn't do

  • Tax directives for lump-sum payments (retrenchment, retirement, death benefits).
  • Foreign-income exemption under Section 10(1)(o)(ii) or double-tax-treaty relief.
  • Capital gains tax — use the CGT calculator for that.
  • Provisional-tax IRP6 submissions — see the provisional-tax calculator.

Sources

Frequently Asked Questions