The 2026/27 tax year runs from 1 March 2026 to 28 February 2027, and it comes with its own set of SARS tax brackets 2026/2027, thresholds and rebates. These South Africa tax brackets determine how much of your taxable income, not your gross salary, gets taxed and at what rate. Below you'll find the full bracket table, the 2026/27 tax rates broken down in plain language, a worked calculation example, and answers to the questions people search for most during filing season.
This page works as a plain reference. If you would rather type in your own number and skip the manual maths, our SARS income tax calculator applies every bracket and rebate below automatically. It is the same SARS calculator behind every other tool on this site, so figures always match no matter which page you land on. It covers SARS salary tax for every income level, from entry level pay right up through the top bracket.
SARS Tax Brackets 2026/2027
| Taxable Income | Tax Payable |
|---|---|
| R1 – R245,100 | 18% of taxable income |
| R245,101 – R383,100 | R44,118 + 26% of taxable income above R245,100 |
| R383,101 – R530,200 | R79,998 + 31% of taxable income above R383,100 |
| R530,201 – R695,800 | R125,599 + 36% of taxable income above R530,200 |
| R695,801 – R887,000 | R185,215 + 39% of taxable income above R695,800 |
| R887,001 – R1,878,600 | R259,783 + 41% of taxable income above R887,000 |
| R1,878,601 and above | R666,339 + 45% of taxable income above R1,878,600 |
These SARS tax rates apply to every South African tax resident's taxable income for the year, whether that income comes from a salary, a bonus, freelance work or investments. The table shows income tax brackets South Africa uses before any rebate is applied, which is why the next few sections matter just as much as the table itself. If you want the same table alongside every other tax year on this site, see our full SARS tax tables page.
Because these are individual tax rates South Africa applies on a sliding scale, a higher income doesn't mean a higher rate on every rand you earn, only on the portion that falls into a higher band. The next section walks through exactly how that works.
How Do SARS Tax Brackets Work?
South Africa uses a progressive tax system, which means different portions of your taxable income are taxed at different rates. Moving into a higher tax bracket does not mean your entire income is suddenly taxed at the higher rate. Only the slice of income that falls inside that specific bracket is taxed at that bracket's rate.
Here's a simple way to picture it. Imagine your taxable income as water filling a set of stacked containers, each one representing a bracket. The first container fills up at the 18% rate. Once it's full, any additional income spills into the next container and is taxed at 26%, and so on. Your income never gets poured back into the first container at a higher rate; each portion keeps the rate of the container it landed in.
This is exactly how South African tax brackets work, and it's the same logic behind how income tax is calculated in South Africa more broadly. Your marginal tax rate South Africa applies is simply the rate on the last rand you earned, the container your final rand landed in, while your average rate across your whole income is always lower.
South Africa Income Tax Rates 2026/2027
Rather than repeating the table above, it's worth understanding what each of the seven rates actually represents:
- 18%: the lowest marginal rate, applied to the first slice of taxable income everyone pays tax on.
- 26%: applies only to the portion of income between the first and second thresholds.
- 31%: the third band, reached once taxable income crosses R383,100.
- 36%: applies from R530,201 upward on that portion of income.
- 39%: the fifth band, starting at R695,801.
- 41%: applies to taxable income between R887,001 and R1,878,600.
- 45%: the highest marginal rate, reserved for taxable income above R1,878,600.
A common misunderstanding around South Africa income tax rates 2026 is assuming the top rate applies to a taxpayer's whole salary once they cross into it. It doesn't. Reaching the 45% tax bracket South Africa uses as its ceiling only means the portion of income above R1,878,600 is taxed at that rate; every rand below that threshold keeps being taxed at the lower rate for its own bracket.
SARS Tax Thresholds 2026/2027
| Age | Tax Threshold |
|---|---|
| Below 65 | R99,000 |
| 65 to below 75 | R153,250 |
| 75 and older | R171,300 |
The SARS tax threshold 2026/2027 is the annual taxable income below which no tax is owed at all, once your age-based rebate is factored in. If you're asking how much can I earn before paying tax in South Africa, these three figures are the answer: below R99,000 a year for someone under 65, and higher for older taxpayers who qualify for an additional rebate.
If you'd like to estimate your monthly PAYE based on a real salary rather than an annual threshold, use our PAYE Calculator, which applies these same thresholds automatically for your age group.
SARS Tax Rebates 2026/2027
| Rebate | Amount |
|---|---|
| Primary rebate | R17,820.00 |
| Secondary rebate | R9,765.00 |
| Tertiary rebate | R3,249.00 |
Every taxpayer receives the primary tax rebate South Africa allows, a flat amount subtracted directly from the tax calculated using the brackets above. Taxpayers aged 65 to 74 also receive the secondary tax rebate, and those 75 and older receive the tertiary tax rebate on top of both earlier rebates. These SARS tax rebates 2026/2027 figures are exactly what creates the age-based thresholds in the previous section, since a bigger rebate means a higher income level before any tax becomes payable.
How to Calculate Income Tax Using SARS Tax Brackets
Numbers make more sense with a real example attached. Let's work through a taxable income of R600,000 for the 2026/2027 tax year.
R600,000 falls in the R530,201 – R695,800 bracket
R600,000 − R530,200 = R69,800
R69,800 × 36% = R25,128
R125,599 + R25,128 = R150,727
Tax before applicable rebates = R150,727
This is a simplified example based on taxable income alone. Actual tax payable can differ depending on rebates, deductions, medical tax credits and other applicable factors, which is exactly why our PAYE calculator and methodology page show every step rather than just a final number.
What Is Taxable Income?
A lot of confusion around calculate income tax South Africa questions comes down to one mix-up: applying a tax bracket directly to gross salary instead of taxable income. They aren't the same thing.
Gross income is everything you earn before anything is subtracted. From there, certain deductions and allowances, such as retirement fund contributions, are subtracted where applicable, leaving your taxable income. It's this final, smaller figure that the SARS tax brackets are actually applied to. Understanding taxable income vs gross income matters because two people with the same gross salary can end up with different tax bills if one contributes more to a retirement annuity than the other.
SARS Tax Brackets vs PAYE
It's easy to blur these two together, but they answer different questions. The income tax brackets on this page determine your total annual tax liability. PAYE is simply the mechanism your employer uses to collect an estimate of that same tax from your salary every month, so you're not left owing a lump sum at year-end.
Want to estimate your monthly PAYE rather than your annual liability? Try our South Africa PAYE Calculator, which applies these exact PAYE tax brackets South Africa uses to a monthly salary and shows your take-home pay directly. For the full step-by-step PAYE calculation South Africa logic behind that tool, see our How PAYE Works guide.
Who Needs to Pay Income Tax in South Africa?
Whether you owe income tax depends on a combination of factors rather than a single rule: your total taxable income, your age, the threshold that applies to your age group, any rebates or deductions you qualify for, and which tax year is being assessed. If your taxable income sits below your applicable threshold, you generally won't owe tax, though you may still need to submit a return depending on your circumstances.
Salaried employees usually have this handled automatically through PAYE, while freelancers and business owners typically register for provisional tax and pay SARS directly. If you're unsure where to start with SARS itself, our SARS eFiling guide covers registration, login and submitting a return.
2026/2027 Tax Year Dates
The 2026/2027 tax year South Africa runs from 1 March 2026 – 28 February 2027. Every figure on this page, and every calculator on this site, defaults to this period unless you choose a different SARS tax year from the options available.
Frequently Asked Questions
What are the SARS tax brackets for 2026/2027?
For the 2026/2027 tax year, taxable income is taxed at 18% up to R245,100, then at increasing rates through 26%, 31%, 36%, 39% and 41%, up to 45% on taxable income above R1,878,600. The full table is above.
What is the tax rate in South Africa for 2026/2027?
South Africa uses seven marginal tax rates for individuals in 2026/2027: 18%, 26%, 31%, 36%, 39%, 41% and 45%, applied progressively to different portions of taxable income rather than as one flat rate.
What is the highest tax bracket in South Africa?
The highest tax bracket for 2026/2027 is 45%, applying only to taxable income above R1,878,600. It never applies to your entire income, only to the portion above that threshold.
How much can I earn before paying tax in South Africa?
For 2026/2027, the tax threshold is R99,000 a year for taxpayers under 65, R153,250 for ages 65 to 74, and R171,300 for those 75 and older. Below these amounts, no income tax is payable.
What is the SARS tax threshold for 2026/2027?
The SARS tax threshold for 2026/2027 is R99,000 for individuals under 65, R153,250 for those aged 65 to 74, and R171,300 for those 75 and older, based on annual taxable income.
Is my entire salary taxed at the highest tax bracket?
No. South Africa uses a progressive tax system, so only the portion of your taxable income within a given bracket is taxed at that bracket's rate. Moving into a higher bracket never increases the tax on income you already earned in a lower one.
How is taxable income calculated in South Africa?
Taxable income starts with your gross income, then subtracts allowable deductions such as retirement fund contributions, before the SARS tax brackets are applied. It's usually lower than your gross salary.
What are the SARS tax rebates for 2026/2027?
For 2026/2027, the primary rebate is R17,820 for all taxpayers, the secondary rebate is an additional R9,765 for those aged 65 to 74, and the tertiary rebate is a further R3,249 for those 75 and older.
Are PAYE and income tax the same thing?
They're closely related but not identical. Income tax brackets determine your annual tax liability, while PAYE is the monthly mechanism employers use to collect that same tax from your salary throughout the year.
How can I calculate my South African income tax?
Apply each SARS tax bracket to the relevant portion of your taxable income, add the results together, then subtract your applicable rebate. Our PAYE calculator does this automatically from a monthly salary figure.
Conclusion
The SARS tax brackets 2026/2027 come down to seven progressive rates, from 18% up to 45%, applied only to the portion of taxable income that falls within each band, never your whole salary at once. Combine that with the tax threshold for your age group and the rebate you qualify for, and you have everything needed to understand where your own income sits. Understanding your tax bracket is only the first step. If you want to estimate how much tax may be deducted from your salary each month, use our PAYE Calculator, or browse every tool on this site via our South Africa tax calculators hub.
Source: South African Revenue Service (SARS) – Rates of Tax for Individuals. Figures also verified against the National Treasury 2026 Budget Tax Guide.