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 income is taxed at its own rate.

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

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?

Before SARS takes your money, you get a rebate — a fixed amount subtracted from your tax bill. For 2026/2027:

• Primary rebate (everyone under 65): R17,235
• Secondary rebate (65–74 years old): additional R9,444
• Tertiary rebate (75+): additional R3,145

This means if your annual tax liability is less than R17,235, you pay zero income tax. That threshold works out to roughly R99,000 per year or about R8,250 per month.

A real example: R25,000/month salary

Annual gross: R300,000

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 = −R17,235
• Annual tax payable = R41,157
• Monthly PAYE = R3,430
• Monthly take-home ≈ R21,570 (before UIF)

Don't forget UIF

Your employer also deducts 1% of your salary for UIF (Unemployment Insurance Fund), capped at R177 per month. This protects you if you're retrenched.

Medical aid credits

If you're on a medical aid, you get additional tax credits:

• R364/month for the main member and first dependant
• R246/month for each additional dependant

These reduce your final tax bill, not your taxable income.

Calculate your own tax

Use our free SARS calculator to see exactly what you'll take home — including rebates, medical aid credits, and UIF.

→ Try the SA Tax Calculator