Understanding South African Income Tax Brackets (2025/2026)
South Africa uses a progressive tax system, meaning the more you earn, the higher the rate at which your income is taxed. For the 2025/2026 tax year (1 March 2025 to 28 February 2026), SARS applies seven tax brackets ranging from 18% to 45%.
How Progressive Tax Brackets Work
A common misconception is that if you fall into the 31% tax bracket, all your income is taxed at 31%. In reality, only the income within that specific bracket is taxed at that rate. Your income is divided across brackets, with each portion taxed at its corresponding rate.
2025/2026 Tax Brackets
The SARS tax table for individuals for the 2025/2026 tax year is as follows:
| Taxable Income (R) | Rate of Tax |
|---|---|
| 1 – 237,100 | 18% of taxable income |
| 237,101 – 370,500 | R42,678 + 26% of amount above R237,100 |
| 370,501 – 512,800 | R77,362 + 31% of amount above R370,500 |
| 512,801 – 673,000 | R121,475 + 36% of amount above R512,800 |
| 673,001 – 857,900 | R179,147 + 39% of amount above R673,000 |
| 857,901 – 1,817,000 | R251,258 + 41% of amount above R857,900 |
| 1,817,001 and above | R644,489 + 45% of amount above R1,817,000 |
Source: SARS Rates of Tax for Individuals, 2025/2026 tax year.
Tax Rebates
Rebates directly reduce your calculated tax liability. They are not deductions from taxable income.
| Rebate | Amount (per year) |
|---|---|
| Primary (all taxpayers) | R17,235 |
| Secondary (65 and older) | R9,444 |
| Tertiary (75 and older) | R3,145 |
Tax Thresholds
The tax threshold is the income level below which no tax is payable. These are derived from the rebates.
| Age | Tax Threshold (R) |
|---|---|
| Under 65 | R95,750 |
| 65 to 74 | R148,217 |
| 75 and older | R165,689 |
Retirement Contributions
Contributions to approved retirement funds (pension, provident, or retirement annuity) are tax deductible up to 27.5% of the greater of your remuneration or taxable income, subject to an annual cap of R350,000.