South Africa Income Tax Calculator 2026/27 | Tax Atlas
Calculate your 2026/27 take-home pay, income tax, and full bracket breakdown for South Africa. Free, no signup required.
Enter your gross income above to see your 2026/27 South Africa tax breakdown instantly.
Quick example
An SA resident, under 65, no medical aid, no RA earning R 500 000 in 2026/27 has a taxable income of R 500 000 after the R 17 820 rebates, and pays approximately R 100 542 in income tax + UIF — an effective rate of about 20.1%.
How South Africa income tax works in 2026/27
South Africa's tax year runs from 1 March 2026 to 28 February 2027. PAYE (Pay As You Earn) income tax uses seven progressive brackets starting at 18% on the first R245,100 of taxable income and rising to 45% on income above R1,878,600. Taxable income is your gross income minus any allowable retirement fund deduction.
Before applying the brackets, you may deduct retirement fund contributions (pension fund, provident fund, or retirement annuity). The deductible amount is the lesser of: your actual contribution, 27.5% of your gross income, or R430,000 (the annual cap was raised from R350,000 in Budget 2026). Any contributions above the cap carry forward to a future tax year.
Once bracket tax is calculated, three fixed rebates reduce the amount payable. The Primary Rebate of R17,820 applies to all taxpayers and effectively makes the first R99,000 of income tax-free. If you are 65 or older, the Secondary Rebate of R9,765 is added; if you are 75 or older, the Tertiary Rebate of R3,249 is added on top. Tax payable cannot go below zero.
If you are a member of a registered medical scheme, you receive the Medical Scheme Fees Tax Credit (MTC). The credit is R376 per month for the main member, R376 per month for the first dependant, and R254 per month for each additional dependant. The MTC is applied after the rebates and further reduces tax payable to a floor of zero.
UIF (Unemployment Insurance Fund) is a separate mandatory contribution of 1% of your gross remuneration, capped at a ceiling of R212,544 per year (maximum annual contribution R2,125.44). This is deducted by your employer and is not related to income tax. The calculator shows UIF as part of your total deductions alongside income tax.
These rates and thresholds are sourced from SARS (sars.gov.za) and National Treasury.
2026/27 South Africa income tax brackets
| Rate | Taxable income |
|---|---|
| 18% | Up to R 245 100 |
| 26% | R 245 100 – R 383 100 |
| 31% | R 383 100 – R 530 200 |
| 36% | R 530 200 – R 695 800 |
| 39% | R 695 800 – R 887 000 |
| 41% | R 887 000 – R 1 878 600 |
| 45% | Over R 1 878 600 |
Brackets apply to taxable income (gross income minus the retirement fund deduction). Cumulative tax at each boundary: R245,100 → R44,118; R383,100 → R79,998; R530,200 → R125,599; R695,800 → R185,215; R887,000 → R259,783; R1,878,600 → R666,339. Source: SARS — Rates of Tax for Individuals 2026/27.
Frequently asked questions
- What is the tax-free threshold in South Africa for 2026/27?
- There is no formal tax-free threshold figure, but the Primary Rebate of R17,820 makes the first R99,000 of income effectively tax-free for individuals under 65. At R99,000, bracket tax equals exactly R17,820 (18% × R99,000), which is fully offset by the rebate — leaving tax payable of R0. For taxpayers aged 65–74, the effective threshold rises to R153,100 due to the additional Secondary Rebate. For those aged 75 and above, the threshold is R170,900.
- How does the retirement annuity (RA) deduction work?
- You may deduct contributions to a pension fund, provident fund, or retirement annuity (RA) from your gross income before calculating tax. The deductible amount is the lowest of: (1) your actual contribution, (2) 27.5% of your gross remuneration or taxable income (whichever is higher), or (3) R430,000 per year. Budget 2026 raised the annual cap from R350,000 to R430,000. Contributions above the deductible amount are not lost — they carry forward and are available for deduction in future tax years.
- What is the Medical Scheme Fees Tax Credit (MTC)?
- The MTC is a fixed monthly credit for members of a registered medical scheme. For 2026/27 it is R376 per month for the main member, R376 per month for the first dependant, and R254 per month for each additional dependant. These amounts are unchanged from 2025/26. The annual credit is subtracted from tax payable after the age rebates, with a floor of zero. The MTC is not means-tested — it applies regardless of income.
- What changed in Budget 2026 for South Africa?
- The 2026 Budget (announced 25 February 2026) made minimal changes to personal income tax. The brackets, rebates, and MTC monthly amounts are all unchanged from 2025/26 — there was no above-inflation adjustment to the brackets. The only significant personal tax change was raising the retirement fund contribution annual cap from R350,000 to R430,000.
- How does UIF work?
- UIF (Unemployment Insurance Fund) is a mandatory social insurance contribution. As an employee, you contribute 1% of your gross remuneration each month, up to a ceiling of R17,712 per month (R212,544 per year). If you are dismissed or retrenched, UIF provides temporary income relief. The maximum annual employee contribution is R2,125.44. Your employer matches this with an additional 1% employer contribution — that is not deducted from your pay and is not shown here.
- Are the age rebates cumulative?
- Yes. The Primary Rebate (R17,820) applies to all taxpayers. If you turn 65 during the tax year, the Secondary Rebate (R9,765) is added, bringing your total rebate to R27,585. If you turn 75 during the tax year, the Tertiary Rebate (R3,249) is also added, bringing the total to R30,834. These rebates are applied against bracket tax before the MTC.
- Is this a professional tax estimate?
- No. This calculator provides estimates for informational purposes only and does not constitute professional tax advice. It models PAYE employment income with the standard retirement fund deduction, age rebates, Medical Scheme Fees Tax Credit, and UIF. It does not cover the Additional Medical Expenses Tax Credit (AMTC) for out-of-pocket costs, carry-forward of excess retirement contributions, foreign tax credits, travel allowance, home office deductions, provisional tax, or other individual circumstances. Consult a CA(SA) or registered Tax Practitioner for advice specific to your situation.
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