South Africa tax tables 2026/27 explained: brackets, rebates and thresholds
South Africa taxes income for a tax year that runs from 1 March to the end of February. The 2026/27 tax year runs from 1 March 2026 to 28 February 2027, and the South African Revenue Service (SARS) labels it the 2027 year of assessment. Employers deduct the tax from each pay as PAYE (pay as you earn). This guide sets out the 2026/27 tables and then takes a salary of R480,000 through them step by step.
The tax table
SARS publishes a table of seven bands. The rate in a band applies only to the part of taxable income inside that band, and the last column is the tax on everything below the band, so the tax on a given income is the figure for its band plus the rate times the amount above the start of the band.
| Taxable income from | To | Rate on the next rand | Tax at the start of the band |
|---|---|---|---|
| R0 | R245,100 | 18% | R0 |
| R245,101 | R383,100 | 26% | R44,118 |
| R383,101 | R530,200 | 31% | R79,998 |
| R530,201 | R695,800 | 36% | R125,599 |
| R695,801 | R887,000 | 39% | R185,215 |
| R887,001 | R1,878,600 | 41% | R259,783 |
| R1,878,601 | and above | 45% | R666,339 |
The first R245,100 of taxable income is taxed at 18%. The top rate of 45% starts above R1,878,600. For a single employee with no other income the pay in the calculators on this site is taken as taxable income, because retirement fund contributions and other deductions are not modelled.
Rebates and the tax threshold
The tax from the table is not the tax payable. A primary rebate of R17,820 is subtracted for everyone. People aged 65 and over also get a secondary rebate of R9,765, and people aged 75 and over a tertiary rebate of R3,249 on top. Tax cannot go below nil, so the rebates create a tax threshold: the income up to which no tax is payable.
| Age group | Rebates added up | Tax threshold (no tax below) |
|---|---|---|
| Under 65 | R17,820 | R99,000 |
| 65 to 74 | R27,585 | R153,250 |
| 75 and over | R30,834 | R171,300 |
The under 65 threshold of R99,000 is the primary rebate divided by the first rate: R17,820 at 18% is R99,000. A person under 65 who earns R99,000 a year pays no PAYE, and on every rand above that line pays 18% until taxable income reaches R245,100.
The medical scheme fees tax credit
Contributions to a registered medical scheme earn a monthly tax credit, which is subtracted from the tax after the rebates. For 2026/27 it is R376 a month for the member, R376 for the first dependant and R254 for each further dependant. A member with one dependant therefore gets R752 a month, R9,024 a year. The credit does not refund tax: it can only bring the tax down to nil, and an unused part is lost.
A worked example
Take a salary of R480,000 a year, which is R40,000 a month. The table puts it in the 31% band, and the tax on each slice is:
| Band of taxable income | Amount in the band | Rate | Tax |
|---|---|---|---|
| R0 to R245,100 | R245,100 | 18% | R44,118.00 |
| R245,100 to R383,100 | R138,000 | 26% | R35,880.00 |
| R383,100 to R480,000 | R96,900 | 31% | R30,039.00 |
| Total before rebates | R480,000 | R110,037.00 |
After the primary rebate of R17,820 the tax is R92,217.00, which is R7,684.75 a month. The last rand earned is taxed at 31%, while the tax paid as a share of pay is 19.21%. The next table runs the same salary for different people.
| Step, per year | Under 65 | Under 65, medical scheme with 2 members | Aged 65 to 74 | Aged 75 and over |
|---|---|---|---|---|
| Pay for the year | R480,000 | R480,000 | R480,000 | R480,000 |
| Tax from the table | R110,037.00 | R110,037.00 | R110,037.00 | R110,037.00 |
| Less rebates | R17,820 | R17,820 | R27,585 | R30,834 |
| Tax after rebates | R92,217.00 | R92,217.00 | R82,452.00 | R79,203.00 |
| Less medical scheme fees tax credit | R0 | R9,024.00 | R0 | R0 |
| PAYE for the year | R92,217.00 | R83,193.00 | R82,452.00 | R79,203.00 |
| PAYE per month | R7,684.75 | R6,932.75 | R6,871.00 | R6,600.25 |
With a medical scheme of two members the credit is R752 a month and takes R9,024.00 off the year. At 65 the secondary rebate lowers the yearly PAYE by R9,765.00, and at 75 the tertiary rebate lowers it by a further R3,249.00.
What comes out of the pay besides PAYE
Employees also pay 1% of pay into the Unemployment Insurance Fund, up to a monthly ceiling. On R40,000 a month that is R177.12. See how UIF is calculated. The monthly pay that reaches the bank in the example, before any pension fund or medical scheme premium, is R32,138.13.
Not included: retirement fund contributions, which lower taxable income, the additional medical expenses credit, travel allowances, fringe benefits, bonuses, other income, and differences between an employer's monthly deduction tables and the final assessment.
Work out your own take-home paySources
- SARS: rates of tax for individuals (2027 table, rebates and thresholds)
- SARS: guide for employers in respect of employees tax (2027)
- SARS: Budget 2026 frequently asked questions (medical scheme fees tax credit)
- Every rate used, with its source and check date: Sources and rates
This calculator is general information only. It uses the SARS pages listed on the Sources page, and your payslip, assessment and personal situation may differ. Rates as at 2 November 2026.