Business Tax Calculator South Africa 2026/2027
Calculate your company's tax instantly — whether you pay the standard 27% rate, qualify as a Small Business Corporation, or use Turnover Tax.
Step 1 — Select your company type:
Not sure which applies to you? Use the quick guide below ↓
Step 2 — Enter your figures:
Before calculating, confirm your company qualifies as an SBC:
This calculator provides an estimate only, based on SARS Budget 2026 rates. It does not constitute tax advice. Confirm your company's regime and exact liability with a registered tax practitioner before filing.
Which tax regime applies to your company?
| Standard CIT | SBC | Turnover Tax | |
|---|---|---|---|
| Rate structure | Flat 27% | Progressive: 0%–27% | 0%–3% of turnover |
| Best for | Most companies | Small companies meeting all 5 SBC criteria | Micro businesses, simple operations |
| Turnover/income limit | None | Gross income ≤ R20 million | Annual turnover ≤ R2.3 million |
| Calculated on | Taxable income (profit) | Taxable income (profit) | Turnover (revenue) |
| Files | ITR14 | ITR14 (at SBC rates) | TT03 |
Source: SARS Budget 2026 FAQ; SARS Small Businesses page
Full SBC qualification guide →
How each tax regime is calculated
Standard CIT (27% flat)
Example: R800,000 taxable income × 27% = R216,000
Source: SARS Budget 2026 FAQ
SBC (progressive rates)
| Taxable income | Rate |
|---|---|
| R0 – R99,000 | 0% |
| R99,001 – R365,000 | 7% of the amount above R99,000 |
| R365,001 – R550,000 | R18,620 + 21% of the amount above R365,000 |
| Above R550,000 | R57,470 + 27% of the amount above R550,000 |
Source: SARS Budget 2026 FAQ
Turnover Tax (percentage of revenue)
Turnover Tax is calculated directly on annual turnover (revenue), using a sliding scale starting at 0% on the first R600,000 and rising to a maximum of 3% above R1.5 million, up to the R2.3 million threshold.
Source: SARS Small Businesses page
What counts as "taxable income"?
For Standard CIT and SBC calculations, enter your taxable income — not your revenue or turnover. Taxable income is calculated as:
Allowable deductions include costs incurred in producing income, such as cost of sales, salaries, rent, interest on business debt, and wear-and-tear on assets.
Source: Income Tax Act 58 of 1962, Section 11; SARS — Corporate Income Tax page
Frequently Asked Questions
The standard Corporate Income Tax (CIT) rate is 27% flat, unchanged for years of assessment ending 1 April 2026 to 31 March 2027 — Budget 2026 announced no change. Companies that qualify as a Small Business Corporation (SBC) pay progressive rates instead: 0% on the first R99,000, rising to a maximum of 27% above R550,000. Companies in approved Special Economic Zones may qualify for a reduced 15% rate.
Your company qualifies as an SBC only if it meets all 5 criteria: it is a private company, close corporation, personal liability company, or co-operative; gross income is R20 million or less; all shareholders/members are natural persons; the company is not a Personal Service Provider; and investment income plus personal service income does not exceed 20% of total receipts (unless the company employs 3 or more full-time, non-shareholder employees). All criteria must be met for the relevant year of assessment.
For Standard CIT and SBC calculations, enter your taxable income (revenue minus allowable business deductions) — not your total turnover or revenue. Entering revenue instead of taxable income will significantly overstate your tax liability. For Turnover Tax calculations, enter your annual turnover directly — this is the one regime calculated on revenue rather than profit.
Turnover Tax is a simplified tax system for micro businesses with annual qualifying turnover not exceeding R2.3 million (increased from R1 million, effective 1 March 2026). It is calculated directly on turnover rather than profit, using rates from 0% (on turnover up to R600,000) to a maximum of 3%. It replaces income tax, provisional tax, and CGT, though a business can elect to remain VAT-registered. Personal service providers and labour brokers are excluded from Turnover Tax.
The saving depends on your taxable income level. For example, a company with R400,000 in taxable income pays approximately R25,970 in tax as a qualifying SBC, compared to R108,000 under the standard 27% CIT rate — a saving of about R82,000. Savings are largest for companies with taxable income below R550,000, since SBC rates converge with the standard 27% rate above that threshold.
This calculator provides an estimate based on the SARS 2026/2027 rates for illustrative purposes. Your actual ITR14 filing requires your complete, accurately calculated taxable income (after all applicable deductions, capital allowances, and elections) and must be submitted via SARS eFiling within 12 months of your company's financial year-end. Use this calculator to estimate and plan, not as a substitute for your actual tax return.
Related guides and tools
Sources:
- SARS — Budget 2026 FAQ — sars.gov.za (CIT rate; SBC rates; SEZ rate; Turnover Tax threshold)
- SARS — Interpretation Note 9 (LAPD-IntR-IN-2012-09) — Small Business Corporations (all 5 SBC qualifying criteria)
- SARS — Small Businesses and Taxpayers — sars.gov.za/businesses-and-employers/small-businesses-taxpayers/ (Turnover Tax threshold and rates)
- SARS — Companies, Trusts and Small Business Corporations (SBC) rates — sars.gov.za/tax-rates/income-tax/companies-trusts-and-small-business-corporations-sbc/
- SARS — Guide to complete the ITR14 — sars.gov.za (filing deadline; company size categories)
- Income Tax Act 58 of 1962 — Section 11 (general deductions); Section 12E (SBC definition)
Last reviewed: June 2026. Next review: after Budget Speech February 2027 — verify CIT rate, SBC rates, and Turnover Tax threshold.