South African financial education | Facts checked 10 November 2026
South African individual income tax uses bands. Moving into a higher band does not mean that all your income is taxed at that higher percentage. Only the relevant slice is taxed at the higher rate. The figures below apply to the 2027 tax year, 1 March 2026 to 28 February 2027.
1. Work out taxable income
Start with relevant taxable income from employment, business, rental and investments, apply exemptions and allowable deductions, and include any taxable capital gain as required. Gross salary and taxable income need not be the same. Medical relief is generally a tax credit applied later, not an ordinary income deduction.
2. Apply the current bands
| Annual taxable income | Tax before rebates |
|---|---|
| Up to R245,100 | 18% |
| R245,101-R383,100 | R44,118 + 26% above R245,100 |
| R383,101-R530,200 | R79,998 + 31% above R383,100 |
| R530,201-R695,800 | R125,599 + 36% above R530,200 |
| R695,801-R887,000 | R185,215 + 39% above R695,800 |
| R887,001-R1,878,600 | R259,783 + 41% above R887,000 |
| Above R1,878,600 | R666,339 + 45% above R1,878,600 |
3. Subtract the applicable rebates and credits
The primary rebate is R17,820. An additional R9,765 applies from age 65, and an additional R3,249 from age 75, subject to the applicable requirements. The ordinary tax bands are not a separate under-65 table; age affects rebates and thresholds. Eligible medical credits can further reduce tax, subject to their limits.
A R500,000 example
Assume a full tax year, an individual under 65, R500,000 taxable income, and no further tax credits or special adjustments:
- Tax before rebate: R79,998 + 31% x (R500,000 - R383,100) = R116,237.
- Less primary rebate: R116,237 - R17,820 = R98,417 annual tax.
4. Compare with tax already paid
PAYE and relevant provisional-tax payments are credits towards the final assessed liability. An overpayment may result in a refund and an underpayment in an amount due, after the full assessment and any applicable adjustments. A tax threshold is not the same as the annual rules determining who must submit a return.
Use a calculation as a guide to questions, not as a substitute for the correct certificates, return and assessment.
Relevant GFS resources
Keep learning with Get Financial Savvy
Follow for more tips and information
@getfinancialsavvy
Facebook | Instagram | Pinterest
General education only, not personalised financial, investment, insurance, tax, medical or legal advice. Confirm current rules, policy terms and suitability with an appropriately qualified professional. No return, tax saving, claim payment or legal outcome is guaranteed.