SARS Tax Brackets and Rates for 2025/2026 Tax Year

Understanding the South African tax brackets is essential for calculating your income tax liability. This guide provides the complete tax tables for the 2025/2026 tax year (1 March 2025 to 28 February 2026).

Income Tax Brackets 2025/2026

The tax brackets determine how much tax you pay based on your taxable income. South Africa uses a progressive tax system, meaning higher income is taxed at higher rates.

Tax Table for Individuals

Tax Rebates 2025/2026

Rebates reduce your tax liability directly. You qualify for different rebates based on your age:

Combined Rebates by Age

• Under 65: R17,235
• 65 to 74: R26,679 (R17,235 + R9,444)
• 75 and older: R29,824 (R17,235 + R9,444 + R3,145)

Tax Thresholds 2025/2026

If your taxable income is below these thresholds, you don't need to pay income tax:

How to Calculate Your Tax

Example 1: Income of R400,000

1. Apply the tax table:

   • First R237,100 at 18% = R42,678
   • Next R133,400 (R370,500 - R237,100) at 26% = R34,684
   • Remaining R29,500 (R400,000 - R370,500) at 31% = R9,145
   • Total before rebates: R86,507

2. Subtract rebates (assuming under 65):

   • R86,507 - R17,235 = R69,272 tax payable

Example 2: Income of R250,000

1. Apply the tax table:

   • First R237,100 at 18% = R42,678
   • Remaining R12,900 at 26% = R3,354
   • Total before rebates: R46,032

2. Subtract rebates (assuming under 65):

   • R46,032 - R17,235 = R28,797 tax payable

Medical Tax Credits

Medical scheme contributions qualify for tax credits:

Main Member + First Dependant

• R364 per month each (R728 total for 2 people)

Additional Dependants

• R246 per month each

Additional Medical Expenses (Section 6B)

If you're 65 or older, or have a disability:

• 33.3% of qualifying medical expenses exceeding 3x the medical credits

For those under 65 without disability:

• 25% of qualifying expenses exceeding 7.5% of taxable income (after Section 6A credits)

Interest Exemptions 2025/2026

Interest income has tax exemptions:

Interest above these amounts is added to your taxable income.

Dividend Tax

Dividends from South African companies are subject to:

• 20% Dividends Tax (withheld at source)
• Dividends tax is a final tax - you don't include dividends in your taxable income

Capital Gains Tax (CGT)

For individuals:

• Annual exclusion: R40,000
• Inclusion rate: 40%
• This means 40% of your capital gain (after the exclusion) is added to your taxable income

Example: R100,000 Capital Gain

• Less exclusion: R100,000 - R40,000 = R60,000
• Inclusion at 40%: R60,000 × 40% = R24,000 added to income

Retirement Fund Contributions

Contributions to retirement funds (pension, provident, RA) are tax-deductible:

• Maximum: 27.5% of the greater of remuneration or taxable income
• Cap: R350,000 per year
• Contributions above this are carried forward

Understanding Provisional Tax with These Brackets

When calculating your provisional tax:

1. Estimate your total taxable income for the year
2. Apply the tax brackets to determine gross tax
3. Subtract rebates
4. Subtract any PAYE already deducted
5. Divide by 2 for the first payment (or pay the full amount)

Tips for Tax Planning

1. Maximize deductions - Contribute to retirement annuities before year-end
2. Time your income - If possible, spread large invoices across tax years
3. Track expenses - Ensure you claim all allowable deductions
4. Use tax-free investments - Consider tax-free savings accounts
5. Plan capital gains - Use the annual exclusion strategically

Changes from Previous Year

Key changes from 2024/2025 to 2025/2026:

• Tax brackets adjusted for inflation
• Rebates increased slightly
• Tax thresholds raised
• Medical tax credits updated

Conclusion

Understanding the tax brackets helps you plan your finances and provisional tax payments. Use TaxTrack SA to automatically calculate your tax liability based on your actual income and expenses.

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Note: These rates are based on the 2025 Budget announcements. Always verify with SARS for the most current information.