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Tax

Tax Rebate

A flat rand amount subtracted directly from the tax owed (not from taxable income). Three age-based rebates apply automatically: primary, secondary (65+), and tertiary (75+).

A tax rebate is a fixed amount that reduces the income tax owed, applied after the bracket calculation. It’s different from a deduction (which lowers taxable income) — a rebate is a rand-for-rand reduction of the tax bill itself, so the saving is the same regardless of marginal rate.

The primary rebate (everyone) is R17,820. Taxpayers aged 65+ get an additional secondary rebate of R9,765; those 75+ get a further tertiary rebate of R3,249. The combined rebates set the effective tax threshold — under-65s start paying tax above R99,000 of taxable income; 65–74 above R153,250; 75+ above R171,300.

Rebates are applied automatically by SARS based on your date of birth — there’s no claim to lodge. They cannot create a refund on their own (rebate-reduced tax is floored at zero), but they can be combined with medical scheme fees credits and other rebates to push tax owed to zero.

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