South Africa Tax Brackets 2026/27 | Tax Atlas
Verified against SARS (sars.gov.za) and National Treasury. Reviewed by Cornél van Zyl, CA(SA) + Registered Tax Practitioner.
South Africa · 2026/27 · Quick answer
In South Africa for the 2026/27 tax year (1 March 2026 – 28 February 2027), PAYE income tax uses seven progressive brackets ranging from 18% to 45%. The Primary Rebate (R17,820) makes the first R99,000 of income effectively tax-free for individuals under 65. The top 45% rate applies to taxable income above R1,878,600.
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.
How South Africa tax brackets work in 2026/27
South Africa's PAYE system uses seven progressive brackets, but it also uses rebates — fixed credits against tax payable — rather than a zero-rate first bracket. The Primary Rebate of R17,820 applies to all resident individuals under 65. Since 18% of R99,000 = R17,820, this rebate offsets the bracket tax on the first R99,000 entirely, creating an effective tax-free amount. For taxpayers aged 65–74, the Secondary Rebate (R9,765) raises this to R153,100; for 75+, the Tertiary Rebate (R3,249) raises it to R170,900.
Before brackets are applied, taxpayers may deduct retirement fund contributions — pension fund, provident fund, or retirement annuity (RA) — from gross income. The deductible amount is limited to the lesser of actual contributions, 27.5% of gross remuneration, or the annual cap of R430,000 (raised from R350,000 in Budget 2026). Excess contributions not deductible in the current year carry forward to future years.
After the Primary Rebate and any Secondary/Tertiary Rebate, the Medical Scheme Fees Tax Credit (MTC) further reduces tax payable. The MTC is R376/month for the main member, R376 for the first dependant, and R254 per month for each additional dependant. This applies regardless of income level — the MTC is not means-tested.
UIF (Unemployment Insurance Fund) is a separate mandatory contribution of 1% of gross remuneration, capped at R212,544/year (maximum R2,125.44). It is not an income tax — it funds unemployment benefits. Both UIF and PAYE are typically deducted by your employer monthly.
What changed from the previous year
The 2026/27 Budget (announced 25 February 2026) made minimal changes to personal income tax. The brackets, rates, Primary Rebate (R17,820), Secondary Rebate (R9,765), Tertiary Rebate (R3,249), and MTC monthly amounts (R376/R376/R254) are all unchanged from 2025/26 — the second consecutive year without bracket relief. The only significant change was raising the retirement fund contribution annual cap from R350,000 to R430,000.
Cumulative tax at common income levels
Computed from the Tax Atlas engine using the default filing status.
| Gross income | Total tax | Take-home | Eff. rate | Marginal |
|---|---|---|---|---|
| R 245 100 | R 28 423 | R 216 677 | 11.6% | 26% |
| R 314 100 | R 46 363 | R 267 737 | 14.8% | 26% |
| R 383 100 | R 64 303 | R 318 797 | 16.8% | 31% |
| R 456 650 | R 87 104 | R 369 546 | 19.1% | 31% |
| R 530 200 | R 109 904 | R 420 296 | 20.7% | 36% |
| R 613 000 | R 139 712 | R 473 288 | 22.8% | 36% |
| R 695 800 | R 169 520 | R 526 280 | 24.4% | 39% |
| R 887 000 | R 244 088 | R 642 912 | 27.5% | 41% |
| R 1 878 600 | R 650 644 | R 1 227 956 | 34.6% | 45% |
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Frequently asked questions
- What are the South Africa tax brackets for 2026/27?
- 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; 45% above R1,878,600. The Primary Rebate (R17,820) then reduces tax payable, making the first R99,000 effectively tax-free.
- How do the age rebates work?
- The Primary Rebate (R17,820) applies to all taxpayers. If you turn 65 during the tax year, the Secondary Rebate (R9,765) is added — total R27,585, raising the effective tax-free threshold to R153,100. If you turn 75, the Tertiary Rebate (R3,249) is also added — total R30,834, raising the threshold to R170,900. Rebates are not pro-rated — they apply in full from the date you reach the relevant age.
- What is the Medical Scheme Fees Tax Credit (MTC)?
- The MTC is a monthly fixed credit for registered medical scheme members. For 2026/27 it is R376/month for the main member, R376 for the first dependant, and R254 for each additional dependant. These amounts are unchanged from 2025/26. Annualised, a single main member saves R4,512 in tax; a couple R9,024. The MTC is applied after the age rebates, with a floor of zero.
- Is South Africa's tax year the same as the calendar year?
- No. South Africa's personal income tax year runs from 1 March to the last day of February. The 2026/27 tax year covers 1 March 2026 to 28 February 2027. SARS typically opens the annual eFiling season in July, with non-provisional taxpayers' filing deadline in October.
- What is the effective top marginal rate in South Africa?
- The statutory top income tax bracket is 45% (on taxable income above R1,878,600). There is no surtax equivalent to Ireland or Ontario. The effective combined deduction (income tax + UIF capped at R2,125) means the marginal UIF has no additional impact above R212,544/year — so the effective top marginal rate is 45% above approximately R1,878,600 of taxable income.