What is the South Africa Income Tax?
South African PAYE uses seven progressive brackets from 18% to 45%, then subtracts an age-based rebate — R17,820 primary for the 2027 tax year (1 March 2026 to 28 February 2027), with extra amounts at 65 and 75. The rebate is what creates the effective tax threshold.
UIF is 1% of salary capped at a monthly ceiling, matched by the employer. Retirement fund contributions are deductible up to 27.5% of income, capped at R350,000 a year.
Formula & worked example
PAYE = progressive brackets − age rebate
Worked example: an R600,000 salary produces bracket tax of about R150,727 before the rebate. After the R17,820 primary rebate, PAYE is roughly R132,907. With UIF of R2,125, net annual pay lands near R464,968, or about R38,747 a month.
How to use this south africa income tax calculator
- Enter your gross annual salary.
- Select your age group — rebates increase at 65 and 75.
- Add retirement annuity or pension fund contributions, which are deductible.
- Check the marginal rate to see what an extra rand of income costs.
Smart tips
- Retirement annuity contributions are the single most effective tax deduction available, up to 27.5% of income.
- A tax-free savings account allows R46,000 a year from 1 March 2026 (R500,000 lifetime) entirely free of tax on growth.
- Medical scheme fees generate a tax credit, which reduces tax directly rather than reducing taxable income.
- The rebate rises at 65 and again at 75, meaningfully lowering tax for older taxpayers.
- Travel and home office allowances have strict substantiation rules — keep detailed logbooks.
Frequently asked questions
What are South African tax brackets?
Seven brackets from 18% to 45%, with the top rate applying above R1,878,600 of taxable income for the 2027 tax year.
What is the primary rebate?
A fixed amount subtracted from calculated tax for all taxpayers — R17,820 for the 2027 tax year — with additional rebates of R9,765 at 65 and R3,249 at 75.
How much can I deduct for retirement?
Up to 27.5% of the greater of remuneration or taxable income, capped at R350,000 per year.
What is UIF?
The Unemployment Insurance Fund contribution — 1% of salary from the employee and 1% from the employer, subject to a monthly ceiling.
Want the theory behind the numbers? Browse the Money Blog for worked guides.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: SARS — rates of tax for individuals and the rebates, 1 Mar 2026 – 28 Feb 2027, SARS — tax-free investments: annual and lifetime limits (from 1 Mar 2026). How we check these numbers.