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. Here are the brackets for the 2026/2027 tax year.
| Taxable income | Tax |
|---|---|
| R0 – R245,100 | 18% |
| R245,101 – R383,100 | R44,118 + 26% of the amount 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 |
| R1,878,601 + | R666,339 + 45% above R1,878,600 |
Rebates reduce the tax
Everyone gets a primary rebate of R17,820. Those 65+ get an extra R9,765, and 75+ a further R3,249. These are subtracted from the tax calculated above.
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.
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%.
This is why a deduction (like a retirement-annuity contribution) saves tax at your marginal rate — the highest rate you pay.
Educational only — confirm current figures with SARS, and see how we use these tables across the tools on the Methodology page.