No tax is due on annual income up to R99 000 (under 65), R153 250 (65–74) or R171 300 (75+).
PAYE is the annual tax spread evenly over 12 months, the way SARS’s tax deduction tables work for a steady salary. Bonuses are taxed in the month paid at your marginal rate.
Medical credits: R376 a month each for you and your first dependant, R254 for each additional dependant. Out-of-pocket medical expenses can earn further relief on assessment.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency.
Income tax brackets – 2027 tax year
Taxable income (R)
Rate of tax (R)
1 – 245,100
18% of taxable income
245,101 – 383,100
44,118 + 26% of taxable income above 245,100
383,101 – 530,200
79,998 + 31% of taxable income above 383,100
530,201 – 695,800
125,599 + 36% of taxable income above 530,200
695,801 – 887,000
185,215 + 39% of taxable income above 695,800
887,001 – 1,878,600
259,783 + 41% of taxable income above 887,000
1,878,601 and above
666,339 + 45% of taxable income above 1,878,600
Rebates and thresholds
Rebate
Tax threshold
Under 65
R17,820 (primary)
R99,000
65 to 74
+ R9,765 (secondary)
R153,250
75 and over
+ R3,249 (tertiary)
R171,300
Medical scheme fees tax credits (per month)
2026/27
2025/26
Main member
R376
R364
First dependant
R376
R364
Each additional dependant
R254
R246
Other amounts for 2026/27
Item
Amount
Retirement fund contributions
deductible up to 27.5%, max R430,000 a year
Interest exemption
R23,800 (under 65), R34,500 (65+)
Tax-free investments
R46,000 a year
Dividends tax
20%
UIF
1% employee + 1% employer on up to R17,712 a month
Worked example: R500,000 a year
Annual salary R500,000, under 65
R79,998 + 31% × R116,900 = R116,237, less the R17,820 primary rebate = R 98 417 for the year.
Take-home pay per monthR 33 288,13
PAYE per month
R 8 201,42
Income tax for the year
R 98 41719.7% of salary
UIF
R 177,121% up to R17,712
How the tax is worked out (annual)
Annual salary
R 500 000
Taxable income
R 500 000
Tax on the brackets
R 116 237,00
Less rebates
−R 17 820,00
Income tax
R 98 417,00
Questions people ask
What are the tax brackets for 2026/27?
18% up to R245,100; 26% to R383,100; 31% to R530,200; 36% to R695,800; 39% to R887,000; 41% to R1,878,600; and 45% above that.
Did the tax brackets change in 2026?
Yes. Budget 2026 raised the brackets, rebates and thresholds by about 3.4% from 1 March 2026, after two years without inflation adjustments.
How much interest is tax-free?
R23,800 a year of South African interest for people under 65 and R34,500 from 65.
What is the tax-free investment limit?
R46,000 a year in tax-free investment accounts; returns inside them are exempt from income tax, including tax on capital gains.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.
