SARS Salary Tax Brackets and Taxable Deductions in South Africa
Understanding how much tax you pay on your salary in South Africa does not have to be confusing. This guide explains the current SARS tax brackets (also called tax tables or tax thresholds), how PAYE (Pay-As-You-Earn) is calculated, and which deductions reduce your taxable income.
We are not SARS. This is an independent plain-English guide. Always confirm the latest tax tables, rebates and deduction limits on the official SARS website: sars.gov.za.
What are the SARS salary tax brackets?
South Africa uses a progressive tax system. This means the more you earn, the higher the percentage of tax you pay on the portion of income that falls into each bracket. Your tax is not calculated at one flat rate on your whole salary — each slice of income is taxed at the rate for that bracket.
Current individual tax brackets — 2027 tax year (1 March 2026 – 28 February 2027)
These are the official SARS rates announced in the Budget on 25 February 2026 and applied to income earned from 1 March 2026 to 28 February 2027.
Annual tax brackets
| Taxable income bracket | Rate of tax |
|---|---|
| R1 – R245 100 | 18% of taxable income |
| R245 101 – R383 100 | R44 118 + 26% of taxable income above R245 100 |
| R383 101 – R530 200 | R79 998 + 31% of taxable income above R383 100 |
| R530 201 – R695 800 | R125 599 + 36% of taxable income above R530 200 |
| R695 801 – R887 000 | R185 215 + 39% of taxable income above R695 800 |
| R887 001 – R1 878 600 | R259 783 + 41% of taxable income above R887 000 |
| R1 878 601 and above | R666 339 + 45% of taxable income above R1 878 600 |
Monthly tax brackets (approximate)
| Monthly taxable income bracket | Marginal tax rate on that bracket |
|---|---|
| R0 – R20 425 | 18% |
| R20 426 – R31 925 | 26% |
| R31 926 – R44 183 | 31% |
| R44 184 – R57 983 | 36% |
| R57 984 – R73 917 | 39% |
| R73 918 – R156 550 | 41% |
| Above R156 550 | 45% |
Note: The monthly figures above are the annual brackets divided by 12. PAYE payroll systems use the official SARS PAYE deduction tables, which may differ by a few rand. Always use the official SARS PAYE tables or a SARS-compliant payroll calculator for exact figures.
Previous tax years (2024 – 2026 tax years)
The brackets below applied for the 2024, 2025 and 2026 tax years (1 March 2023 – 28 February 2026) — useful if you are filing a late or prior-year return.
| Taxable income bracket | Rate of tax |
|---|---|
| R1 – R237 100 | 18% of taxable income |
| R237 101 – R370 500 | R42 678 + 26% of taxable income above R237 100 |
| R370 501 – R512 800 | R77 362 + 31% of taxable income above R370 500 |
| R512 801 – R673 000 | R121 475 + 36% of taxable income above R512 800 |
| R673 001 – R857 900 | R179 147 + 39% of taxable income above R673 000 |
| R857 901 – R1 817 000 | R251 258 + 41% of taxable income above R857 900 |
| R1 817 001 and above | R644 489 + 45% of taxable income above R1 817 000 |
Tax rebates and thresholds
SARS gives every taxpayer a primary rebate. There are also secondary rebates for people aged 65 and older, and tertiary rebates for people aged 75 and older. These rebates reduce the tax you owe after the brackets have been applied.
Tax rebates
| Rebate type | Who qualifies | 2027 tax year | 2026 tax year |
|---|---|---|---|
| Primary rebate | All individual taxpayers | R17 820 | R17 235 |
| Secondary rebate | 65 years and older | R9 765 | R9 444 |
| Tertiary rebate | 75 years and older | R3 249 | R3 145 |
Note: the secondary and tertiary rebates are added to the primary rebate. A taxpayer aged 75+ in the 2027 tax year therefore gets R17 820 + R9 765 + R3 249 = R30 834.
Tax thresholds (the income level where you start paying tax)
| Age | 2027 tax year | 2026 tax year |
|---|---|---|
| Under 65 | R99 000 | R95 750 |
| 65 and older | R153 250 | R148 217 |
| 75 and older | R171 300 | R165 689 |
If your annual taxable income is below the threshold for your age, you pay no income tax — although you may still need to file a return.
Common taxable deductions
A deduction reduces your taxable income, which lowers the amount of tax you pay. Below are the most common deductions South African salary earners can claim.
| Deduction | What it covers | Notes |
|---|---|---|
| Retirement annuity contributions | Payments to a retirement annuity (RA) | Limited to 27.5% of taxable income, capped per year |
| Pension / provident fund contributions | Contributions through your employer's fund | Subject to the same overall limit as RA contributions |
| Medical scheme fees tax credit | Monthly medical aid premiums | Fixed monthly credit per person on the scheme |
| Additional medical expenses | Out-of-pocket medical costs | Claimable if costs exceed a set percentage of taxable income |
| Travel expenses | Business travel in your own vehicle | Logbook required; personal travel does not qualify |
| Home office expenses | Running costs of a home office | Strict SARS requirements; only certain costs qualify |
| Donations to approved charities | Gifts to registered PBOs | Limited to a percentage of taxable income |
| Wear-and-tear on work equipment | Assets used mainly for work | May be claimed over the useful life of the asset |
How to use this table
- Find your annual taxable income in the first table.
- Apply the formula in that row to work out your tax before rebates.
- Subtract the rebate you qualify for.
- Subtract any medical scheme tax credits you are entitled to.
- The result is your estimated tax for the year.
Worked example (2027 tax year, under 65)
Someone earning R30 000 a month has an annual taxable income of R360 000.
- R360 000 falls in the R245 101 – R383 100 bracket.
- Tax before rebates: R44 118 + 26% x (R360 000 - R245 100) = R44 118 + R29 874 = R73 992.
- Less the primary rebate of R17 820 = R56 172 tax for the year, roughly R4 681 PAYE per month before any medical credits or retirement deductions.
Where to find the official SARS tax tables
- SARS rates of tax for individuals: sars.gov.za
- SARS PAYE tables for employers: sars.gov.za
- SARS eFiling to file your return: efiling.sars.gov.za
Need more help?
If you are unsure about your tax bracket or which deductions you can claim, speak to a registered tax practitioner or contact SARS directly. The information on this page is a general guide and does not replace professional tax advice.