Income tax brackets 2026/27
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 1 to 245,100 | 18% of taxable income |
| 245,101 to 383,100 | 44,118 + 26% of income above 245,100 |
| 383,101 to 530,200 | 79,998 + 31% of income above 383,100 |
| 530,201 to 695,800 | 125,599 + 36% of income above 530,200 |
| 695,801 to 887,000 | 185,215 + 39% of income above 695,800 |
| 887,001 to 1,878,600 | 259,783 + 41% of income above 887,000 |
| 1,878,601 and above | 666,339 + 45% of income above 1,878,600 |
2025/26 brackets (2026 tax year) for comparison
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 1 to 237,100 | 18% |
| 237,101 to 370,500 | 42,678 + 26% above 237,100 |
| 370,501 to 512,800 | 77,362 + 31% above 370,500 |
| 512,801 to 673,000 | 121,475 + 36% above 512,800 |
| 673,001 to 857,900 | 179,147 + 39% above 673,000 |
| 857,901 to 1,817,000 | 251,258 + 41% above 857,900 |
| 1,817,001 and above | 644,489 + 45% above 1,817,000 |
Rebates and tax thresholds
| 2026/27 | 2025/26 | |
|---|---|---|
| Primary rebate (everyone) | R17,820 | R17,235 |
| Secondary rebate (65+) | R9,765 | R9,444 |
| Tertiary rebate (75+) | R3,249 | R3,145 |
| Tax threshold under 65 | R99,000 | R95,750 |
| Tax threshold 65 to 74 | R153,250 | R148,217 |
| Tax threshold 75+ | R171,300 | R165,689 |
Medical scheme fees tax credit (per month)
| 2026/27 | 2025/26 | |
|---|---|---|
| Main member | R376 | R364 |
| First dependant | R376 | R364 |
| Each additional dependant | R254 | R246 |
Other individual limits 2026/27
| Item | 2026/27 | 2025/26 |
|---|---|---|
| Interest exemption under 65 / 65+ | R23,800 / R34,500 | R23,800 / R34,500 |
| Retirement fund deduction | 27.5%, max R430,000 | 27.5%, max R350,000 |
| CGT annual exclusion | R50,000 | R40,000 |
| CGT inclusion rate (individuals) | 40% | 40% |
| Primary residence exclusion | R3 million | R2 million |
| CGT exclusion on death | R300,000 | R300,000 |
| Tax-free savings: annual / lifetime | R46,000 / R500,000 | R36,000 / R500,000 |
| Donations tax annual exemption | R150,000 | R100,000 |
| Dividends tax | 20% | 20% |
| Retirement lump sum tax-free | R550,000 | R550,000 |
| UIF (employee + employer) | 1% + 1%, ceiling R17,712/month | 1% + 1%, ceiling R17,712/month |
| VAT rate | 15% | 15% |
| Compulsory VAT registration | R2.3 million turnover (from 1 April 2026) | R1 million |
| Small business corporation 0% band | R99,000 | R95,750 |
Put the tables to work: income tax calculator · salary calculator · CGT calculator.
Frequently asked questions
What are the tax brackets for 2026/27?
Seven brackets from 18% to 45%: 18% up to R245,100, then 26%, 31%, 36%, 39%, 41% and 45% above R1,878,600. The full table is above.
Did the tax brackets change in Budget 2026?
Yes. In Budget 2026 the brackets, rebates and medical credits were adjusted for inflation, after two years without an adjustment.
What is the 2027 tax year?
SARS names the tax year after the February it ends in. The 2027 year of assessment is 1 March 2026 to 28 February 2027, also written as 2026/27.
Last updated 2026-10-10. Sources: SARS rates of tax for individuals, medical tax credit rates, interest exemption, capital gains tax and the rate-per-kilometre schedule on sars.gov.za.