Tax

SARS Tax Brackets 2026/27

The full income tax rate table for the 2027 tax year, the rebates that decide what you actually owe, and worked examples at every income level.

Updated 22 July 2026 • By Sipho Dlamini • Fact-checked

What are the SARS tax brackets for 2026/27?

Income tax starts at 18% on taxable income up to R245,100 and rises through 26%, 31%, 36%, 39% and 41% to a top rate of 45% above R1,878,600. Because of the R17,820 primary rebate, anyone under 65 earning below R99,000 a year pays no income tax at all.

Lowest bracket: 18% (to R245,100)
Top bracket: 45% (above R1,878,600)
Primary rebate: R17 820
Tax-free threshold (under 65): R99 000

Income tax rates 2026/27

Applies to the 2027 year of assessment, running from 1 March 2026 to 28 February 2027. Find the row your annual taxable income falls into - that is income after deductions such as retirement contributions, not your gross salary.

Taxable income	Rate	Tax payable
R0 – R245 100	18%	18% of taxable income
R245 101 – R383 100	26%	R44 118 + 26% of the amount above R245 100
R383 101 – R530 200	31%	R79 998 + 31% of the amount above R383 100
R530 201 – R695 800	36%	R125 599 + 36% of the amount above R530 200
R695 801 – R887 000	39%	R185 215 + 39% of the amount above R695 800
R887 001 – R1 878 600	41%	R259 783 + 41% of the amount above R887 000
R1 878 601 and above	45%	R666 339 + 45% of the amount above R1 878 600

Source: SARS Rates of Tax for Individuals, 2027 year of assessment.

Rebates and tax thresholds

Rebates are subtracted from the tax you owe, not from your income. They are the reason a tax-free threshold exists at all - the bracket table itself starts taxing from the first rand.

Under 65

R17 820

Tax-free up to R99 000

65 to 74

R27 585

Tax-free up to R153 250

75 and over

R30 834

Tax-free up to R171 300

What you actually pay

Tax on a range of salaries, assuming you are under 65 with no deductions beyond the primary rebate. Note the gap between the marginal bracket and the effective rate.

Monthly salary	Annual	Tax / month	Effective rate
R15 000	R180 000	RR1 215	8.1%
R25 000	R300 000	RR3 381	13.5%
R40 000	R480 000	RR7 685	19.2%
R60 000	R720 000	RR14 736	24.6%
R90 000	R1 080 000	RR26 758	29.7%

Excludes UIF, medical credits and retirement deductions. Use the calculator for your own figures.

A raise never leaves you worse off

The most common misconception about tax brackets is that crossing into a higher one taxes your whole salary at the new rate. It does not. Only the portion above each threshold is taxed at the higher rate, so earning more always leaves you with more after tax. Someone earning R530,300 pays 36% only on that final R100 - not on the whole amount.

Work out your own tax

Our calculator applies these brackets along with UIF, medical credits and retirement deductions to give you a monthly take-home figure.

Salary after tax calculator

Frequently asked questions

What are the SARS tax brackets for 2026/27? +

For the 2027 tax year (1 March 2026 to 28 February 2027) the brackets start at 18% on taxable income up to R245,100 and rise through 26%, 31%, 36%, 39% and 41% to a top marginal rate of 45% on income above R1,878,600.

How much can I earn before paying tax in South Africa? +

Below 65 you pay no income tax on annual taxable income up to R99 000. From 65 to 74 the threshold rises to R153 250, and from 75 it is R171 300. These thresholds exist because of the tax rebates, not a zero-rate bracket.

What is the difference between a marginal and an effective tax rate? +

Your marginal rate is the rate you pay on your next rand earned - the bracket you fall into. Your effective rate is total tax divided by total income, and it is always lower because the earlier portions of your income are taxed at lower rates. Someone in the 36% bracket typically has an effective rate closer to 22%.

Does moving into a higher tax bracket reduce my take-home pay? +

No. South Africa uses a progressive system, so only the income above each threshold is taxed at the higher rate. A raise that pushes you into the next bracket always leaves you with more money after tax, never less.

What are the tax rebates for 2026/27? +

The primary rebate is R17 820 for everyone under 65. Those aged 65 to 74 receive an additional secondary rebate of R9 765, and those 75 and older receive a further tertiary rebate of R3 249. Rebates are subtracted directly from tax owed.

Are the 2026/27 tax brackets adjusted for inflation? +

Bracket adjustments are announced in the annual Budget. When brackets are left unchanged while salaries rise, taxpayers drift into higher brackets in real terms - commonly called bracket creep or a stealth tax.

Deadlines

SARS tax season 2026 dates

Calculator

Salary after tax