South Africa uses a progressive tax system. This means each portion of your income is taxed at a different rate — not your entire salary at one flat rate. Understanding these brackets is key to understanding your payslip.
Want to see how these tax brackets affect your salary? Use the Salary Calculator
2026/2027 Tax Brackets
The following rates apply for the tax year 1 March 2026 – 28 February 2027, as published by SARS:
| Taxable Income (Annual) | Tax Rate | Base Tax + Rate on Excess |
|---|---|---|
| R0 – R245,100 | 18% | 18% of taxable income |
| R245,101 – R383,100 | 26% | R44,118 + 26% above R245,100 |
| R383,101 – R530,200 | 31% | R79,998 + 31% above R383,100 |
| R530,201 – R695,800 | 36% | R125,599 + 36% above R530,200 |
| R695,801 – R887,000 | 39% | R185,215 + 39% above R695,800 |
| R887,001 – R1,878,600 | 41% | R259,783 + 41% above R887,000 |
| R1,878,601+ | 45% | R666,339 + 45% above R1,878,600 |
How Progressive Tax Works
Your salary isn't all taxed at one rate. Each portion is taxed at the bracket rate it falls into:
Example: R40,000/month (R480,000/year)
- First R245,100 taxed at 18% = R44,118
- Next R138,000 (R245,101 – R383,100) at 26% = R35,880
- Remaining R96,900 (R383,101 – R480,000) at 31% = R30,039
- Total tax before rebate: R110,037
- Less primary rebate: R17,820
- Annual PAYE: R92,217 (effective rate: 19.2%)
Tax Rebates (2026/2027)
| Rebate Type | Annual Amount | Tax Threshold |
|---|---|---|
| Primary (under 65) | R17,820 | R99,000/year |
| Secondary (65–74) | R9,765 | R153,250/year |
| Tertiary (75+) | R3,252 | R171,300/year |
Real Salary Examples
| Monthly Salary | Monthly PAYE | Take-Home | Effective Rate |
|---|---|---|---|
| R20,000 | R2,115 | R17,708 | 10.58% |
| R30,000 | R4,442 | R25,381 | 14.81% |
| R40,000 | R7,685 | R32,138 | 19.21% |
| R50,000 | R11,076 | R38,747 | 22.15% |
| R60,000 | R14,736 | R45,087 | 24.56% |
| R80,000 | R22,658 | R57,165 | 28.32% |
| R100,000 | R31,190 | R68,633 | 31.19% |
Frequently Asked Questions
What are the South Africa tax brackets for 2026?
For the 2026/2027 tax year, South Africa has 7 brackets ranging from 18% (up to R245,100) to 45% (above R1,878,600). See the full table above.
What is the primary tax rebate for 2026?
R17,820. This means you effectively pay no tax on the first R99,000 of annual income (R8,250/month).
How does PAYE work in South Africa?
PAYE is deducted monthly by your employer using the progressive bracket system. Only income above each threshold is taxed at the higher rate. Read our complete guide to how income tax works.