Income Tax Brackets South Africa 2026/2027 — Official SARS Rates
The 2026/2027 tax year runs from 1 March 2026 to 28 February 2027. SARS adjusted all seven income tax brackets by 3.4% for inflation — the first adjustment since 2023/24.
Income tax brackets 2026/2027 (2027 tax year: 1 March 2026 – 28 February 2027)
| 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 |
| Above R1,878,600 | R666,339 + 45% of amount above R1,878,600 |
Source: SARS Budget 2026 FAQ — sars.gov.za/about/sars-tax-and-customs-system/budget/budget-2026-frequently-asked-questions/ (announced 25 February 2026, effective 1 March 2026)
Always verify current rates at sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/
Always verify current rates at sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/
Tax rebates 2026/2027
| Rebate | Amount | Who qualifies |
|---|---|---|
| Primary rebate | R17,820 | All individual taxpayers |
| Secondary rebate | R9,765 | Age 65 to 74 |
| Tertiary rebate | R3,249 | Age 75 and older |
Source: SARS Budget 2026 FAQ; SARS Guide PAYE-GEN-01-G01 (effective 1 March 2026)
Tax-free thresholds 2026/2027 — you pay zero tax below these amounts
| Age group | Annual income threshold |
|---|---|
| Under 65 | R99,000 |
| Age 65 to 74 | R153,250 |
| Age 75 and older | R171,300 |
Source: SARS PAYE-GEN-01-G01 Guide for Employers in respect of Tax Deduction Tables (effective 1 March 2026); SARS Budget 2026 FAQ
Note: The primary rebate of R17,820 is equal to 18% of R99,000 — which is why a taxpayer under 65 who earns exactly R99,000 pays zero tax. The rebate fully offsets the lowest-bracket tax on income up to that threshold.
Note: The primary rebate of R17,820 is equal to 18% of R99,000 — which is why a taxpayer under 65 who earns exactly R99,000 pays zero tax. The rebate fully offsets the lowest-bracket tax on income up to that threshold.
How progressive tax brackets work — the most common misconception corrected
You do NOT pay your bracket rate on your entire income.
This is the most common misunderstanding about South African income tax. Each rand of income is only taxed at the rate of the bracket it falls into — not at the rate of your highest bracket.
Think of it like steps. The first R245,100 of anyone's income is taxed at 18% — even if they earn R5 million. The 45% rate only applies to the portion of income above R1,878,600. Every taxpayer pays the same rate on the same slice of income.
18%
26%
31%
36%
39%
41%
45%
Example: R400,000 annual taxable income
Someone earning R400,000 is technically "in the 31% bracket" (R383,101–R530,200).
But they do NOT pay 31% on R400,000. Here is how the tax is actually calculated:
| Portion of income | Rate | Tax |
|---|---|---|
| First R245,100 | 18% | R44,118 |
| Next R138,000 (R245,101–R383,100) | 26% | R35,880 |
| Remaining R16,900 (R383,101–R400,000) | 31% | R5,239 |
| Total before rebates | R85,237 | |
| Less: Primary rebate | (R17,820) | |
| Income tax payable | R67,417 | |
| Effective tax rate | 16.9% |
Notice: the effective rate (16.9%) is far lower than the marginal rate (31%). The "31% bracket" describes only the rate on the last slice of income.
- Marginal tax rate — the rate that applies to your last (highest) rand of income; the rate of the bracket your top income falls into
- Effective tax rate — your total tax as a percentage of your total income; always lower than your marginal rate
- Tax rebate — a flat rand amount deducted directly from your calculated tax (not from your income)
Source: SARS — Income Tax Act 58 of 1962 (progressive tax structure); SARS Budget 2026 FAQ
How much income tax do you pay? — Worked examples
The following examples calculate annual income tax using the 2026/2027 brackets, primary rebate (R17,820), and no other deductions.
Example 1: R15,000/month (R180,000/year) — entry-level salary
| Step | Calculation | Amount |
|---|---|---|
| Annual taxable income | R15,000 × 12 | R180,000 |
| Tax on R180,000 | 18% × R180,000 | R32,400 |
| Less: Primary rebate | (R17,820) | |
| Annual income tax | R14,580 | |
| Monthly tax (PAYE) | R14,580 ÷ 12 | R1,215/month |
| Effective tax rate | R14,580 ÷ R180,000 | 8.1% |
Example 2: R30,000/month (R360,000/year) — middle income
| Step | Calculation | Amount |
|---|---|---|
| Annual taxable income | R30,000 × 12 | R360,000 |
| Tax on first R245,100 | 18% × R245,100 | R44,118 |
| Tax on R114,900 (R245,101–R360,000) | 26% × R114,900 | R29,874 |
| Total before rebate | R73,992 | |
| Less: Primary rebate | (R17,820) | |
| Annual income tax | R56,172 | |
| Monthly tax (PAYE) | R56,172 ÷ 12 | R4,681/month |
| Effective tax rate | R56,172 ÷ R360,000 | 15.6% |
Example 3: R50,000/month (R600,000/year) — upper-middle income
| Step | Calculation | Amount |
|---|---|---|
| Annual taxable income | R50,000 × 12 | R600,000 |
| Tax on first R245,100 | 18% | R44,118 |
| Tax on R138,000 (to R383,100) | 26% | R35,880 |
| Tax on R147,100 (to R530,200) | 31% | R45,601 |
| Tax on R69,800 (to R600,000) | 36% | R25,128 |
| Total before rebate | R150,727 | |
| Less: Primary rebate | (R17,820) | |
| Annual income tax | R132,907 | |
| Monthly tax (PAYE) | R132,907 ÷ 12 | R11,076/month |
| Effective tax rate | R132,907 ÷ R600,000 | 22.2% |
Example 4: R100,000/month (R1,200,000/year) — high income
| Step | Calculation | Amount |
|---|---|---|
| Annual taxable income | R100,000 × 12 | R1,200,000 |
| Tax on first R245,100 | 18% | R44,118 |
| Tax on next R138,000 | 26% | R35,880 |
| Tax on next R147,100 | 31% | R45,601 |
| Tax on next R165,600 | 36% | R59,616 |
| Tax on next R191,200 | 39% | R74,568 |
| Tax on next R312,900 (to R1,200,000) | 41% | R128,289 |
| Total before rebate | R388,072 | |
| Less: Primary rebate | (R17,820) | |
| Annual income tax | R370,252 | |
| Monthly tax (PAYE) | R370,252 ÷ 12 | R30,854/month |
| Effective tax rate | R370,252 ÷ R1,200,000 | 30.9% |
These examples assume no retirement fund contributions, no medical aid, and no other deductions. Your actual PAYE will differ if you contribute to a pension/RA fund or have a medical aid — both of which reduce taxable income and therefore reduce tax. Use our calculator for a personalised estimate.
Income tax calculator — personalise your estimate →
Medical scheme fees tax credit — reduces your tax directly
Beyond the age rebates, taxpayers with a medical aid can also claim the medical scheme fees tax credit (Section 6A), which reduces your actual tax liability — not your taxable income.
2026/2027 monthly medical credit:
| Beneficiaries | Monthly credit |
|---|---|
| Taxpayer (member) | R376 |
| First additional dependant | R376 |
| Each further dependant | R254 |
Source: SARS Budget 2026 FAQ — sars.gov.za
How it works: If you pay for yourself and one dependant on medical aid, you receive R376 × 2 = R752/month credit = R9,024/year deducted directly from your income tax bill.
Using the R30,000/month example (R360,000/year taxable income):
Full medical tax credit calculator →
- Income tax before medical credit: R56,172
- Medical credit (self + 1 dependant): R9,024/year
- Income tax after medical credit: R47,148 (effective rate drops to 13.1%)
How 2026/2027 brackets compare to 2025/2026
The tax rates themselves are unchanged — 18% through 45% across seven brackets. What changed is that all bracket thresholds, rebates, and tax-free thresholds increased by 3.4% to partially compensate for inflation — the first such adjustment since the 2023/24 tax year.
| Taxable income bracket | 2025/2026 rate | 2026/2027 rate | Change |
|---|---|---|---|
| R0 – R237,100 / R0 – R245,100 | 18% | 18% | Threshold ↑ 3.4% |
| R237,101 – R370,500 / R245,101 – R383,100 | 26% | 26% | Threshold ↑ 3.4% |
| R370,501 – R512,800 / R383,101 – R530,200 | 31% | 31% | Threshold ↑ 3.4% |
| R512,801 – R673,000 / R530,201 – R695,800 | 36% | 36% | Threshold ↑ 3.4% |
| R673,001 – R857,900 / R695,801 – R887,000 | 39% | 39% | Threshold ↑ 3.4% |
| R857,901 – R1,817,000 / R887,001 – R1,878,600 | 41% | 41% | Threshold ↑ 3.4% |
| Above R1,817,000 / Above R1,878,600 | 45% | 45% | Threshold ↑ 3.4% |
Rebates comparison
| Rebate | 2025/2026 | 2026/2027 | Increase |
|---|---|---|---|
| Primary | R17,235 | R17,820 | +R585 |
| Secondary (65–74) | R9,444 | R9,765 | +R321 |
| Tertiary (75+) | R3,145 | R3,249 | +R104 |
Threshold comparison
| Age group | 2025/2026 threshold | 2026/2027 threshold | Increase |
|---|---|---|---|
| Under 65 | R95,750 | R99,000 | +R3,250 |
| 65 to 74 | R148,217 | R153,250 | +R5,033 |
| 75 and older | R165,689 | R171,300 | +R5,611 |
Source: SARS Budget 2026 FAQ (25 February 2026); SARS — Rates of Tax for Individuals (sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/)
Bracket creep: The 3.4% bracket adjustment is a partial inflation relief. If your salary increased by more than 3.4% in 2026, the excess increase pushes a larger portion of your income into higher brackets — a phenomenon called bracket creep. Average South African salary increases in 2026 were 5–6%, meaning most employees experienced some bracket creep despite the adjustment. (Source: SARS Budget 2026 FAQ)
Which tax bracket are you in? — Quick reference
| Monthly salary | Approx annual income | Your bracket | Marginal rate |
|---|---|---|---|
| Below R8,250 | Below R99,000 | Below tax threshold | 0% |
| R8,250 – R20,425 | R99,000 – R245,100 | Bracket 1 | 18% |
| R20,426 – R31,925 | R245,101 – R383,100 | Bracket 2 | 26% |
| R31,926 – R44,183 | R383,101 – R530,200 | Bracket 3 | 31% |
| R44,184 – R57,983 | R530,201 – R695,800 | Bracket 4 | 36% |
| R57,984 – R73,917 | R695,801 – R887,000 | Bracket 5 | 39% |
| R73,918 – R156,550 | R887,001 – R1,878,600 | Bracket 6 | 41% |
| Above R156,550 | Above R1,878,600 | Bracket 7 | 45% |
Monthly figures are approximate — divide annual bracket thresholds by 12. For PAYE purposes, SARS annualises monthly salary for the bracket calculation.
Source: SARS Budget 2026 FAQ; SARS PAYE-GEN-01-G01
Source: SARS Budget 2026 FAQ; SARS PAYE-GEN-01-G01
Your marginal rate is NOT your effective rate. Even if you are "in the 36% bracket", your effective tax rate will be significantly lower — because the 36% rate only applies to the portion of income within that bracket, not your full salary.
Calculate your exact effective rate →
Frequently Asked Questions
For the 2026/2027 tax year (1 March 2026 – 28 February 2027), South Africa has seven income tax brackets: 18% on taxable income up to R245,100; 26% on R245,101–R383,100; 31% on R383,101–R530,200; 36% on R530,201–R695,800; 39% on R695,801–R887,000; 41% on R887,001–R1,878,600; and 45% on income above R1,878,600. All bracket thresholds were adjusted 3.4% for inflation — the first adjustment since 2023/24.
For the 2026/2027 tax year, you pay zero income tax if your annual taxable income is below: R99,000 (if under 65); R153,250 (if aged 65 to 74); R171,300 (if aged 75 or older). These thresholds exist because the primary rebate (R17,820) exactly offsets the 18% tax on income up to R99,000.
No. South Africa uses a progressive tax system — you only pay each rate on the portion of income that falls within that bracket. For example, if you earn R400,000 per year, you pay 18% on the first R245,100, 26% on the next R138,000, and 31% only on the remaining R16,900 — not 31% on the full R400,000. Your effective tax rate is always lower than your bracket rate.
The primary rebate for 2026/2027 is R17,820 — increased from R17,235 in 2025/2026. The primary rebate applies to all individual taxpayers under 65 and is deducted directly from your calculated income tax (not from your taxable income). The secondary rebate (age 65–74) is R9,765 and the tertiary rebate (age 75+) is R3,249.
The tax rates themselves (18%–45%) are unchanged. All seven bracket thresholds were increased by 3.4% for inflation — the first inflationary adjustment since the 2023/24 tax year. This means taxpayers who received salary increases of up to 3.4% will not be pushed into higher brackets. Rebates and tax-free thresholds also increased by 3.4%, resulting in approximately R585 per year in additional relief for taxpayers under 65.
The maximum marginal income tax rate in South Africa is 45%, which applies to taxable income above R1,878,600 per year (R156,550/month) for the 2026/2027 tax year. However, even at this income level, the effective tax rate is lower than 45% — because all income below the bracket threshold is taxed at lower rates.
Related guides and tools
Specific scenarios
Essential tax guides
Sources and references
All tax brackets, rebates, and thresholds on this page are sourced from, or verified against, the following official and authoritative references:
- SARS — Budget 2026 Frequently Asked Questions — sars.gov.za/about/sars-tax-and-customs-system/budget/budget-2026-frequently-asked-questions/
- SARS — Tax Deduction Tables (PAYE-GEN-01-G01) — sars.gov.za/tax-rates/employers/tax-deduction-tables/
- SARS — Rates of Tax for Individuals — sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/
This page was last reviewed in March 2026 by Solly Maanaso, CA(SA). Next review: after Budget Speech February 2027.