How is income tax calculated in South Africa?
South Africa's tax year runs from 1 March to the end of February. For the year to 28 February 2027, taxable income is taxed from 18% on the first ZAR 245,100 up to 45% above ZAR 1,878,600. Residents and non-residents pay the same rates.
Every person then deducts the primary rebate of ZAR 17,820 from the tax, which is why someone under 65 pays no tax on income up to ZAR 99,000. Employees also pay 1% of pay to the Unemployment Insurance Fund, on remuneration up to ZAR 212,544 a year.
What is the income tax rate in South Africa?
| Taxable income | Rate |
|---|---|
| ZAR 0 – ZAR 245,100 | 18% |
| ZAR 245,100 – ZAR 383,100 | 26% |
| ZAR 383,100 – ZAR 530,200 | 31% |
| ZAR 530,200 – ZAR 695,800 | 36% |
| ZAR 695,800 – ZAR 887,000 | 39% |
| ZAR 887,000 – ZAR 1,878,600 | 41% |
| Over ZAR 1,878,600 | 45% |
What mandatory salary deductions apply?
- Unemployment Insurance Fund (UIF): 1% of pay, on up to 212,544 a year.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: ZAR 49,000.00 a month
An employee earning 49,000 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | ZAR 49,000.00 | ZAR 588,000.00 |
| Income tax | ZAR 10,715.58 | ZAR 128,587.00 |
| Compulsory contributions | ZAR 177.12 | ZAR 2,125.44 |
| Take-home pay | ZAR 38,107.30 | ZAR 457,287.56 |
Effective income tax rate 21.9%; all deductions 22.2%.
Frequently asked questions
What is the tax-free threshold?
ZAR 99,000 for someone under 65 in the 2027 tax year, because of the primary rebate.
Are there extra rebates for older people?
Yes: a secondary rebate of ZAR 9,765 from age 65 and a tertiary rebate of ZAR 3,249 from age 75.
Is there a national pension contribution?
No. The only compulsory employee contribution is 1% to the Unemployment Insurance Fund.
Official sources
- South African Revenue Service: Rates of Tax for Individuals. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 29 May 2026): South Africa – Individual – Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 29 May 2026): South Africa – Individual – Other tax credits and incentives. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 29 May 2026): South Africa – Individual – Other taxes. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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