2025 vs 2026 South Africa Tax: What Changed?
Every year, the South African government adjusts tax brackets, rebates, and thresholds. These changes directly impact your take-home pay. Here's a detailed comparison of the 2025/2026 and 2026/2027 tax years, based on the SARS published tax rate schedules.
Summary of Key Changes
The 2026/2027 tax year brought several adjustments to help offset inflation:
- +3.4% increase in tax bracket thresholds
- +3.4% increase in primary rebate (R17,235 → R17,820)
- +3.4% increase in tax-free threshold (R95,750 → R99,000)
Tax Bracket Comparison
| Bracket | 2025/2026 | 2026/2027 | Change |
|---|---|---|---|
| 18% up to | R237,100 | R245,100 | +R8,000 |
| 26% up to | R370,500 | R383,100 | +R12,600 |
| 31% up to | R512,800 | R530,200 | +R17,400 |
| 36% up to | R673,000 | R695,800 | +R22,800 |
| 39% up to | R857,900 | R887,000 | +R29,100 |
| 41% up to | R1,817,000 | R1,878,600 | +R61,600 |
| 45% above | R1,817,000 | R1,878,600 | +R61,600 |
Rebate Changes
| Rebate Type | 2025/2026 | 2026/2027 | Change |
|---|---|---|---|
| Primary (under 65) | R17,235 | R17,820 | +R585 |
| Secondary (65-74) | R9,444 | R9,765 | +R321 |
| Tertiary (75+) | R3,145 | R3,252 | +R107 |
Who Benefits From These Changes?
Most Salary Earners Benefit
Because the bracket thresholds and rebates increased, most people will see a slight increase in take-home pay if their salary stayed the same. The adjustments help offset inflation (bracket creep).
Impact by Salary Level
| Monthly Salary | 2025 Take-Home | 2026 Take-Home | Monthly Gain |
|---|---|---|---|
| R20,000 | R17,636 | R17,685 | +R49 |
| R30,000 | R25,006 | R25,142 | +R136 |
| R50,000 | R38,547 | R38,747 | +R200 |
| R75,000 | R53,622 | R53,922 | +R300 |
| R100,000 | R67,197 | R67,597 | +R400 |
Who Might Pay More?
Salary Increases Without Bracket Adjustment
If you received a salary increase that pushed you into a higher bracket, you may pay more tax overall. This is known as bracket creep. However, only the portion above each threshold is taxed at the higher rate.
What is Bracket Creep?
Bracket creep occurs when inflation pushes your salary into higher tax brackets, even though your purchasing power hasn't increased. The government adjusts brackets annually to partially offset this effect.
For example, if you received a 5% raise but brackets only increased by 3.4%, you may be paying slightly more tax on the difference.
Compare Your Personal Tax Situation
Use our comparison tool to see exactly how the changes affect your salary
Compare 2025 vs 2026Frequently Asked Questions
Q: Will I automatically pay less tax in 2026?
If your salary stayed the same, yes – you'll likely pay slightly less due to the bracket and rebate adjustments. However, if you received a raise, the net effect depends on the size of your increase.
Q: Why doesn't the government eliminate bracket creep entirely?
Fully inflation-adjusting brackets would reduce government revenue. The partial adjustment is a balance between fiscal needs and taxpayer relief.
Q: How can I calculate my exact difference?
Use our salary calculator with the comparison mode enabled to see your personal 2025 vs 2026 breakdown.
Q: When do the 2026 rates apply?
The 2026/2027 tax year runs from 1 March 2026 to 28 February 2027. Your employer should have updated payroll systems by March 2026.