South Africa Income Tax Rates & Brackets
Tax System Overview
System: Progressive (marginal)
Authority: South African Revenue Service (SARS)
Law: Income Tax Act 58 of 1962
South Africa’s tax year runs 1 March to 28/29 February. SARS updates tax tables annually. Taxpayers under 65 receive a primary rebate of R17,235, making the first R95,750 of income effectively tax-free.
Key Deductions & Allowances
Primary rebate of R17,235 (under 65), making ~R95,750 effectively tax-free. Retirement fund contributions up to 27.5% of taxable income (max R350,000). Medical tax credits. Travel allowance deductions. Home office expenses for qualifying taxpayers.
South Africa Income Tax Brackets
Current tax rates for South Africa. Progressive (marginal) system.
| Income Range | Tax Rate |
|---|---|
| R0 – R237,100 | 18% |
| R237,101 – R370,500 | 26% |
| R370,501 – R512,800 | 31% |
| R512,801 – R673,000 | 36% |
| R673,001 – R857,900 | 39% |
| R857,901 – R1,817,000 | 41% |
| R1,817,001+ | 45% |
Additional Taxes & Contributions
Beyond income tax, South Africa workers may pay these additional charges.
| Tax / Contribution | Rate | Notes |
|---|---|---|
| UIF (Unemployment Insurance Fund) | 1% | On income up to R17,712/month; employer matches |
| Skills Development Levy | 1% | Paid by employers only |
| Medical tax credits | R364/month (main member) | Plus R364 for first dependent, R246 for additional |
Effective Tax Rates by Income
Estimated federal/national income tax only. Shows how effective rates differ from marginal rates.
| Annual Income | Est. Tax | Effective Rate |
|---|---|---|
| R200,000 | R18,733 | 9.4% |
| R350,000 | R52,193 | 14.9% |
| R500,000 | R97,513 | 19.5% |
| R750,000 | R171,163 | 22.8% |
| R1,000,000 | R251,963 | 25.2% |
Estimates based on standard deductions/allowances. Actual tax depends on personal circumstances, filing status, and applicable credits.
About South Africa's Tax System
South Africa uses a progressive tax system with 7 brackets ranging from 18% to 45%. The primary rebate of R17,235 effectively exempts the first ~R95,750 of income from tax for individuals under 65.
The UIF (Unemployment Insurance Fund) contribution of 1% is deducted from employees, with employers matching the contribution. It funds unemployment, maternity, and illness benefits.
South Africa allows generous retirement fund deductions (up to 27.5% of taxable income) and medical tax credits. The two-pot retirement system (effective 2024) allows limited access to retirement savings.
Tax Brackets by Country
Compare income tax systems across different countries.
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PhilippinesFrequently Asked Questions
18% (R0–R237,100), 26% (R237,101–R370,500), 31% (R370,501–R512,800), 36% (R512,801–R673,000), 39% (R673,001–R857,900), 41% (R857,901–R1,817,000), and 45% (R1,817,001+).
The primary rebate of R17,235 (under 65) makes approximately R95,750 of annual income effectively tax-free.
The Unemployment Insurance Fund (UIF) is a 1% deduction from employees (matched by employers) that funds unemployment, maternity, and illness benefits.