South African tax tables 2026/27
Every main SARS rate and limit for individuals in the 2026/27 tax year (1 March 2026 to 28 February 2027), on one page.
Income tax brackets
These rates apply to taxable income for the 2026/27 tax year (the 2027 year of assessment). Budget 2026 raised every bracket threshold by about 3.4% to cover inflation; the rates did not change.
| Taxable income a year | Tax |
|---|---|
| R 1 – 245 100 | 18% of taxable income |
| R 245 101 – 383 100 | R 44 118 + 26% of the amount above R 245 100 |
| R 383 101 – 530 200 | R 79 998 + 31% of the amount above R 383 100 |
| R 530 201 – 695 800 | R 125 599 + 36% of the amount above R 530 200 |
| R 695 801 – 887 000 | R 185 215 + 39% of the amount above R 695 800 |
| R 887 001 – 1 878 600 | R 259 783 + 41% of the amount above R 887 000 |
| R 1 878 601 and above | R 666 339 + 45% of the amount above R 1 878 600 |
Rebates and tax thresholds
A rebate is subtracted from the tax worked out above. Below the threshold you pay no income tax at all.
| Age on 28 February 2027 | Rebate a year | No tax below (a year) | About a month |
|---|---|---|---|
| Under 65 | R 17 820 | R 99 000 | R 8 250 |
| 65 to 74 | R 27 585 (primary R 17 820 + secondary R 9 765) | R 153 250 | R 12 771 |
| 75 and older | R 30 834 (+ tertiary R 3 249) | R 171 300 | R 14 275 |
Medical scheme fees tax credits
| Who is covered | Credit a month |
|---|---|
| You (the main member) | R 376 |
| Your first dependant | R 376 |
| Each additional dependant | R 254 |
The credit comes straight off your tax. A family of four on a medical scheme gets R 1 260 a month (R 15 120 a year). Read more in medical tax credits explained.
Interest, dividends and capital gains
| Item | 2026/27 |
|---|---|
| Interest exemption, under 65 | R 23 800 a year |
| Interest exemption, 65 and older | R 34 500 a year |
| Dividends tax (withheld) | 20% |
| Capital gains: annual exclusion | R 50 000 |
| Capital gains: primary residence exclusion | R 3 000 000 of the gain |
| Capital gains: inclusion rate for individuals | 40% (so at most 18% of the gain is tax) |
Retirement and savings limits
| Item | 2026/27 |
|---|---|
| Retirement fund contributions you can deduct | 27.5% of the greater of remuneration or taxable income, up to R 430 000 a year and not more than your taxable income before the deduction |
| Tax-free savings: yearly limit | R 46 000 |
| Tax-free savings: lifetime limit | R 500 000 |
| Tax on contributions above the tax-free limits | 40% of the excess |
Withdrawals from the savings pot under the two-pot system are taxed at your marginal rate, like salary. Lump sums from the vested component, and the lump sum you may take at retirement, use the tables below.
Lump sums when you resign or withdraw before retirement
| Taxable lump sum | Tax |
|---|---|
| R 1 – R 27 500 | 0% |
| R 27 501 – R 726 000 | 18% of the amount above R 27 500 |
| R 726 001 – R 1 089 000 | R 125 730 + 27% of the amount above R 726 000 |
| R 1 089 001 and above | R 223 740 + 36% of the amount above R 1 089 000 |
Lump sums at retirement, death or retrenchment (severance)
| Taxable lump sum | Tax |
|---|---|
| R 1 – R 550 000 | 0% |
| R 550 001 – R 770 000 | 18% of the amount above R 550 000 |
| R 770 001 – R 1 155 000 | R 39 600 + 27% of the amount above R 770 000 |
| R 1 155 001 and above | R 143 550 + 36% of the amount above R 1 155 000 |
Both tables are cumulative: lump sums you received in earlier years count first and use up the lower brackets.
Transfer duty on property
Paid by the buyer when the seller is not charging VAT. Unchanged from the year before.
| Property value | Transfer duty |
|---|---|
| R 1 – R 1 210 000 | 0% |
| R 1 210 001 – R 1 663 800 | 3% of the value above R 1 210 000 |
| R 1 663 801 – R 2 329 300 | R 13 614 + 6% of the value above R 1 663 800 |
| R 2 329 301 – R 2 994 800 | R 53 544 + 8% of the value above R 2 329 300 |
| R 2 994 801 – R 13 310 000 | R 106 784 + 11% of the value above R 2 994 800 |
| R 13 310 001 and above | R 1 241 456 + 13% of the value above R 13 310 000 |
VAT and UIF
| Item | 2026/27 |
|---|---|
| VAT standard rate | 15% |
| VAT compulsory registration | Taxable supplies above R 2,3 million in 12 months (proposed in Budget 2026, applied from 1 April 2026) |
| UIF, employee | 1% of pay up to R 17 712 a month (at most R 177,12) |
| UIF, employer | Another 1% on the same pay |
Frequently asked questions
When does the 2026/27 tax year start and end?
It runs from 1 March 2026 to 28 February 2027. SARS calls it the 2027 year of assessment.
What is my marginal tax rate?
It is the rate in the bracket your taxable income falls into: the tax on your next rand of income. Your average rate, tax divided by income, is always lower because of the lower brackets and the rebate.
How much tax will I pay on my salary?
See the take-home pay table for common salaries, or enter your own pay in the take-home pay calculator.
Related calculators
Take-Home Pay Calculator
PAYE, UIF and net pay from your gross salary.
Open calculator →CALCULATORRetirement Annuity Tax Calculator
How much tax a retirement annuity contribution saves.
Open calculator →CALCULATORTransfer Duty Calculator
Transfer duty on any property price.
Open calculator →Income tax brackets, rebates and thresholds from SARS: rates of tax for individuals. Medical credits, interest exemption, capital gains, retirement, tax-free savings, lump sum, transfer duty, dividends and VAT figures from the Budget 2026 Tax Guide (National Treasury and SARS, 25 February 2026). UIF ceiling from SARS: Unemployment Insurance Fund. Checked 18 October 2026. The next changes are expected in the February 2027 Budget. This page is general information, not tax advice.