South Africa Tax Brackets 2026/27
For 2026/27 (1 March 2026 – 28 February 2027), South African PAYE tax spans seven brackets from 18% to 45%. The R17,820 Primary Rebate makes the first R99,000 of income effectively tax-free.
Verified against SARS (sars.gov.za) and National Treasury. Reviewed by Cornél van Zyl, CA(SA) + Registered Tax Practitioner.
South Africa · 2026/27 · Summary
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
| Taxable income | Rate | Cumulative tax |
|---|---|---|
| Up to R 245 100 | 18% | R 44 118 |
| R 245 100 – R 383 100 | 26% | R 79 998 |
| R 383 100 – R 530 200 | 31% | R 125 599 |
| R 530 200 – R 695 800 | 36% | R 185 215 |
| R 695 800 – R 887 000 | 39% | R 259 783 |
| R 887 000 – R 1 878 600 | 41% | R 666 339 |
| Over R 1 878 600 | 45% | — |
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.
Are South Africa tax brackets changing in 2026/27?
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.
| Threshold / parameter | Previous year | 2026/27 | Change |
|---|---|---|---|
| All 7 income tax brackets | Unchanged | Unchanged | No change (2nd year frozen) |
| Primary Rebate | R17,820 | R17,820 | No change |
| Secondary Rebate (65+) | R9,765 | R9,765 | No change |
| Retirement fund deduction cap | R350,000 | R430,000 | +R80,000 (Budget 2026) |
| UIF cap (gross earnings) | R212,544 | R212,544 | No change |
South Africa tax at common income levels (2026/27)
Computed by the Tax Atlas engine from official 2026/27 rates. Default filing status; no additional deductions or credits.
| Gross income | Taxable income | Total tax | Take-home | Eff. rate |
|---|---|---|---|---|
| R 200 000 | R 200 000 | R 20 180 | R 179 820 | 10.1% |
| R 400 000 | R 400 000 | R 69 542 | R 330 458 | 17.4% |
| R 700 000 | R 700 000 | R 171 158 | R 528 842 | 24.5% |
| R 1 000 000 | R 1 000 000 | R 290 418 | R 709 582 | 29.0% |
| R 2 000 000 | R 2 000 000 | R 705 274 | R 1 294 726 | 35.3% |
Step-by-step: R 700 000 gross
Use the income tax calculator for a personalised calculation with your exact income, filing status, and deductions.
How South Africa tax brackets work
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.
South Africa tax: key rules and exceptions
South Africa uses rebates rather than a zero-rate first bracket to achieve its effective tax-free threshold. The Primary Rebate of R17,820 directly reduces tax payable — it exactly offsets the 18% tax on the first R99,000 of taxable income. Secondary Rebate (R9,765 for taxpayers turning 65) and Tertiary Rebate (R3,249 for 75+) stack on top, raising the effective threshold to R153,100 and R170,900 respectively. Rebates apply in full from the date you reach the qualifying age — they are not pro-rated.
Retirement fund contributions (pension fund, provident fund, retirement annuity) are deductible from taxable income, reducing your bracket exposure. The annual deduction cap increased to R430,000 for 2026/27 — a significant rise from R350,000. The deduction is also capped at 27.5% of the greater of gross remuneration or taxable income. Excess contributions not claimed in the current year carry forward and can be deducted in future years.
The Medical Scheme Fees Tax Credit (MTC) is R376/month per member and the first dependant, plus R254 for each additional dependant. This is a credit against tax, not a deduction from income — worth R4,512 per year for a single member. Unlike the retirement deduction, the MTC is not means-tested and applies equally at all income levels. After applying rebates and MTC, add SARS eFiling contributions for UIF (1%, capped at R2,125) to arrive at total deductions.
How do tax brackets work? (Common misconception)
A common misconception is that earning more can leave you worse off — that crossing into a higher bracket means more of your income gets taxed at a higher rate. This is not how progressive taxation works.
Each bracket applies only to the income that falls within its range. If your income crosses into a higher bracket, only the amount above the threshold is taxed at the higher rate — not your entire income. A higher salary always means higher take-home pay.
Your marginal rate is the rate on your last dollar earned. Your effective rate is total tax divided by gross income — always lower than your marginal rate. See the marginal tax rate and effective tax rate glossary entries.
Calculate your exact South Africa tax
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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.