MoneyZap
Open the app →
2026/2027 SARS tax brackets explained
South Africa taxes individuals on a sliding scale: the more you earn, the higher the rate on each additional slice of income. The rate applies to your taxable income, which is your gross income after deductions like retirement-fund contributions, not your full salary. Here are the brackets for the 2026/2027 tax year.
| Taxable income | Tax |
|---|---|
| R0 to R245,100 | 18% |
| R245,101 to R383,100 | R44,118 + 26% of the amount above R245,100 |
| R383,101 to R530,200 | R79,998 + 31% above R383,100 |
| R530,201 to R695,800 | R125,599 + 36% above R530,200 |
| R695,801 to R887,000 | R185,215 + 39% above R695,800 |
| R887,001 to R1,878,600 | R259,783 + 41% above R887,000 |
| R1,878,601 and above | R666,339 + 45% above R1,878,600 |
Want your own figure? Use the income tax calculator to see your PAYE, UIF, and take-home pay on these tables.
Rebates reduce the tax
Everyone gets a primary rebate of R17,820. Those 65 and older get an extra R9,765, and those 75 and older a further R3,249. These come straight off the tax worked out from the table above, so they lower what you actually pay.
What you can earn before you pay tax
Because the rebate wipes out the tax on your first slice of income, there's a floor below which you owe nothing. It's the rebate divided by the 18% bottom rate. For 2026/2027:
| Age | Tax-free up to |
|---|---|
| Under 65 | R99,000 |
| 65 to 74 | R153,250 |
| 75 and older | R171,300 |
Marginal vs effective rate
Your marginal rate is the rate on your next rand of income, the bracket you're sitting in. Your effective rate is the average across all your income (total tax ÷ income), and it's always lower, because the early slices are taxed less.
This is where a common worry comes from. A raise that nudges you into the next bracket does not tax all your income at the higher rate, only the part above the threshold. You always keep more after a raise, never less.
Worked example: R400,000 income
- You're in the 31% bracket, so tax = R79,998 + 31% × (R400,000 − R383,100) = R79,998 + R5,239 = R85,237.
- Less the primary rebate of R17,820 = R67,417 payable.
- Effective rate ≈ 16.9%, even though your marginal rate is 31%.
Worked example: R900,000 income
- You're into the 41% bracket, so tax = R259,783 + 41% × (R900,000 − R887,000) = R259,783 + R5,330 = R265,113.
- Less the primary rebate of R17,820 = R247,293 payable.
- Effective rate ≈ 27.5%, against a marginal rate of 41%.
The gap between the two rates is the whole reason a deduction is worth so much. Money you put into a retirement annuity comes off the top of your income, so it saves tax at your marginal rate, the highest rate you pay.
How the tax reaches SARS
If you earn a salary, your employer withholds the tax every month as PAYE (Pay As You Earn) and pays it over for you, so you don't face one big bill in February. If you have income that isn't taxed at source, like rent or freelance earnings, you're usually a provisional taxpayer and pay in two estimates during the year, with a top-up when you file.
Common questions
Will a raise into a higher bracket leave me with less money?
No. Only the income above the threshold is taxed at the higher rate. The rest keeps its lower rates, so more gross pay always means more take-home.
How much can I earn before I pay income tax?
Under 65, you pay nothing on taxable income up to R99,000 for 2026/2027. It's R153,250 from age 65 and R171,300 from 75.
Why is the tax I pay lower than my bracket rate?
Your bracket is your marginal rate, charged only on your top slice. Your effective rate, spread across all your income, is lower.
Related guides
- The retirement annuity tax deduction: how a deduction saves tax at your marginal rate.
- Your payslip: PAYE, UIF, SDL: how this tax is collected each month.
- What is a TER?: how fund fees, like tax, quietly reduce what you keep.