How Much Tax Do I Pay on My Salary in South Africa? (2026/2027)

The short answer

South Africa uses a progressive tax system — the more you earn, the higher the rate on each additional rand. But you never pay the top rate on your full salary. Each portion of your taxable income is taxed at its own rate.

For the 2026/2027 tax year, individual income tax rates range from 18% to 45%, depending on annual taxable income.

The 2026/2027 SARS tax brackets

| Annual Income | Rate | Tax on this portion | |---|---|---| | R0 – R245,100 | 18% | Up to R44,118 | | R245,101 – R383,100 | 26% | Up to R35,880 | | R383,101 – R530,200 | 31% | Up to R45,601 | | R530,201 – R695,800 | 36% | Up to R59,616 | | R695,801 – R887,000 | 39% | Up to R74,568 | | R887,001 – R1,878,600 | 41% | Up to R406,556 | | R1,878,601+ | 45% | On every rand above |

What is a tax rebate?

A rebate is an amount subtracted from the tax calculated under the bracket table. For 2026/2027:

• Primary rebate: R17,820
• Secondary rebate for qualifying taxpayers aged 65–74: an additional R9,765
• Tertiary rebate for qualifying taxpayers aged 75+: an additional R3,249

For a taxpayer under 65, the corresponding income-tax threshold is R99,000 per year.

A salary-only example: R25,000/month

Assume an employee under 65 earns R25,000 a month (R300,000 a year), with no medical scheme credit or retirement-fund contribution included in this example.

Tax calculation:

• First R245,100 taxed at 18% = R44,118
• Remaining R54,900 taxed at 26% = R14,274
• Gross tax = R58,392
• Less primary rebate = −R17,820
• Annual PAYE estimate = R40,572
• Monthly PAYE estimate = R3,381
• Monthly UIF = R177.12 at the current contribution ceiling
• Estimated take-home after PAYE and UIF ≈ R21,442

This is a simplified salary-planning example. A real payslip can differ because payroll may include allowances, fringe benefits, bonuses, retirement contributions, medical scheme credits, directives or other taxable remuneration and deductions.

Medical scheme tax credits

For 2026/2027, the Medical Scheme Fees Tax Credit is:

• R376/month for the taxpayer
• R376/month for the first dependant
• R254/month for each additional dependant

These credits reduce tax liability rather than taxable income.

Retirement-fund contributions

Qualifying pension, provident and retirement-annuity contributions may reduce taxable income under section 11F. For the 2026/2027 year, the deduction is subject to the applicable 27.5% test and an annual cap of R430,000. A final SARS assessment can differ from a salary-only calculator when you have other income or carried-forward contributions.

Estimate your own PAYE

→ Try the SARS Tax Calculator South Africa

Enter the salary, age, medical scheme and retirement inputs the tool supports to estimate PAYE, UIF and take-home pay. Treat the result as a planning or payslip-sanity-check estimate — not as a payroll certificate, tax-practitioner opinion or SARS assessment.