Income Tax Calculator
South Africa 2026/27
Calculate South African individual income tax using the Budget 2026/27 seven-bracket table under the Income Tax Act 58 of 1962. Applies all three age-based rebates and medical scheme fees tax credits. Tax rates from 18% to 45%. Tax thresholds from R99,000 to R171,300 depending on age.
Entry rate
18%
On income up to R245,100
Top rate
45%
Above R1,878,600 — s6
Primary rebate
R17,820
All taxpayers — s6(2)(a)
Zero threshold (under 65)
R99,000
Budget 2026/27
What is income tax in South Africa?
South African income tax defined
Individual income tax in South Africa is levied on taxable income under the Income Tax Act 58 of 1962 — primarily Section 6. For the 2026/27 tax year (1 March 2026 to 28 February 2027), the tax is calculated using a seven-bracket progressive tablewith marginal rates from 18% on the lowest bracket to 45% on income above R1,878,600. Each rate applies only to income within that bracket — not to the taxpayer’s total income.
The gross tax calculated from the bracket table is then reduced by rebates — fixed Rand deductions from the tax liability rather than from taxable income. All individual taxpayers receive the primary rebate of R17,820. Taxpayers aged 65 and older receive an additional secondary rebate of R9,765. Taxpayers aged 75 and older receive a further tertiary rebate of R3,249. These rebates determine the effective tax-free thresholds: R99,000 for taxpayers under 65, R153,250 for those aged 65 to 74, and R171,300 for those aged 75 and older.
Taxpayers who contribute to a registered medical aid scheme receive a further reduction through the medical scheme fees tax credit under Section 6A: R376 per month for the main member, R376 per month for the first dependant, and R254 per month for each additional dependant. This credit is applied after the bracket tax and rebates have been calculated.
Statutory calculator
Calculate income tax — 2026/27
Enter your annual taxable income — not your gross salary. Taxable income is gross income after allowable deductions (RA contributions, pension fund contributions, and other SARS-approved deductions). Switch to Detailed Mode to include age-based rebates and medical scheme credits.
Annual taxable income after all allowable deductions — RA contributions (subject to the 27.5% / R430,000 cap), pension fund contributions, travel deduction, and any other SARS-approved deductions. This is the figure on your IRP5 or ITR12 — not your gross salary.
Income Tax Act 58/1962 · s6 · Budget 2026/27 · SARS
Awaiting calculation
Enter your annual taxable income and click Calculate. Switch to Detailed Mode to include age-based rebates and medical scheme credits.
Tax brackets — Budget 2026/27
South Africa income tax brackets 2026/27 — all seven
These are the seven individual income tax brackets for the 2026/27 tax year under Section 6 of the Income Tax Act 58 of 1962. Source: SARS Budget 2026/27 Tax Pocket Guide (February 2026). The brackets are progressive — each rate applies only to the income within that bracket.
| Taxable income (R) | Tax formula | Marginal rate |
|---|---|---|
| R1 – R245,100 | 18% of taxable income | 18% |
| R245,101 – R383,100 | R44,118 + 26% above R245,100 | 26% |
| R383,101 – R530,200 | R79,998 + 31% above R383,100 | 31% |
| R530,201 – R695,800 | R125,599 + 36% above R530,200 | 36% |
| R695,801 – R887,000 | R185,215 + 39% above R695,800 | 39% |
| R887,001 – R1,878,600 | R259,783 + 41% above R887,000 | 41% |
| R1,878,601 and above | R666,339 + 45% above R1,878,600 | 45% |
Source: Income Tax Act 58/1962 · s6 · SARS Budget 2026/27 Tax Pocket Guide · 1 March 2026
Rebates and thresholds — 2026/27
Income tax rebates and tax-free thresholds
Rebates are fixed Rand amounts subtracted from gross tax after the bracket table is applied. They are not deductions from taxable income. The thresholds show the taxable income level at which the tax liability first exceeds the rebates.
Rebates — subtracted from gross tax
| Rebate | Amount | Who |
|---|---|---|
| Primary | R17,820 | All individual taxpayers |
| Secondary | R9,765 | Age 65 and older |
| Tertiary | R3,249 | Age 75 and older |
| Total (age 75+) | R30,834 | All three combined |
Tax-free thresholds — no tax below
| Age group | Threshold |
|---|---|
| Below 65 | R99,000 |
| 65 to below 75 | R153,250 |
| 75 and above | R171,300 |
Source: s6 ITA 58/1962 · Budget 2026/27
Medical scheme fees tax credit — s6A Income Tax Act
| Person covered | Monthly credit | Annual credit |
|---|---|---|
| Main member (taxpayer) | R376 | R4,512 |
| First dependant | R376 | R4,512 |
| Each further dependant | R254 | R3,048 |
Source: s6A Income Tax Act 58/1962 · Budget 2026/27 Tax Pocket Guide
Calculation methodology
How South African income tax is calculated — step by step
Start with taxable income — not gross income
Income Tax Act 58/1962 — s1 definition of taxable income
The income tax calculation starts with taxable income — gross income minus all allowable deductions. The most significant deductions for most individuals are retirement annuity (RA) contributions, pension fund contributions, and any employer-matching retirement contributions. RA contributions are deductible up to 27.5% of the greater of remuneration or taxable income, capped at R430,000 per year (Budget 2026/27). Travel deductions and home office deductions also reduce gross income to taxable income where applicable.
Apply the seven-bracket tax table
Income Tax Act 58/1962 — s6 · SARS Budget 2026/27
Find the bracket that applies to the taxable income figure and calculate gross tax using the cumulative formula. For taxable income of R450,000 (third bracket): R79,998 base plus 31% of R66,900 (R450,000 minus R383,100) = R79,998 plus R20,739 = R100,737 gross tax. The gross tax is a before-rebates figure — do not use it to estimate the actual liability yet.
Subtract the primary rebate
Income Tax Act 58/1962 — s6(2)(a) · R17,820
Every individual taxpayer subtracts the primary rebate of R17,820 from their gross tax. This is a Rand credit against the tax liability — it is not a deduction from taxable income. For the R450,000 example: R100,737 minus R17,820 = R82,917 tax after primary rebate. This is the tax payable for a taxpayer below age 65 with no medical aid contributions.
Subtract secondary and tertiary rebates if applicable
Income Tax Act 58/1962 — s6(2)(b)(c) · age 65+ and 75+
Taxpayers aged 65 and older subtract the secondary rebate of R9,765. Taxpayers aged 75 and older subtract a further tertiary rebate of R3,249. These rebates are cumulative — a taxpayer aged 75 or older receives all three rebates totalling R30,834, which effectively means their taxable income threshold before any tax is payable is R171,300.
Subtract the medical scheme fees tax credit
Income Tax Act 58/1962 — s6A · R376/R376/R254 per month
If the taxpayer contributes to a registered medical aid scheme, subtract the medical scheme fees tax credit: R376 per month for the first two members, R254 per month for each additional member. For a family of four (main member + three dependants) the annual credit is (R376 × 12) + (R376 × 12) + (R254 × 12) + (R254 × 12) = R4,512 + R4,512 + R3,048 + R3,048 = R15,120. This final credit gives the net income tax payable.
Worked examples
Three income tax calculations — 2026/27
Example 1: Taxable income R85,000 — below threshold, no tax
Example 2: R450,000 taxable income — age 42, family of 3 on medical aid
Example 3: R2,000,000 taxable income — top bracket (45%)
Practitioner notes
Common mistakes in income tax calculations
Mistake 1: Using gross salary instead of taxable income
Income tax is calculated on taxable income — not on gross salary. Taxable income is gross income after subtracting allowable deductions: RA contributions (up to 27.5% of remuneration or taxable income, capped at R430,000), pension fund contributions, employer retirement contributions, and other SARS-approved deductions. Using gross salary as the input to the bracket table overstates the tax liability — sometimes significantly, particularly for employees making large RA contributions who may be in a lower effective tax bracket than their salary suggests.
Mistake 2: Applying rebates as deductions from taxable income
The primary, secondary, and tertiary rebates (R17,820, R9,765, R3,249) are credits against the tax liability — not deductions from taxable income. This means they reduce the tax payable rand-for-rand after the bracket table has been applied, not the income base on which tax is calculated. Applying them as income deductions will produce an incorrect (understated) tax liability because they are worth more as a tax credit than as an income deduction at low marginal rates and worth the same at the 18% entry rate.
Mistake 3: Omitting the medical scheme fees tax credit
The medical scheme fees tax credit under Section 6A is a significant credit that many practitioners omit from manual calculations. For a taxpayer on a medical aid covering themselves, a spouse, and two children, the annual credit is R376 + R376 + R254 + R254 multiplied by 12 = R15,120. This reduces the final tax payable by R15,120 — a material amount for most taxpayers. The credit applies to any registered medical aid scheme and is not means-tested.
Frequently asked questions
Income tax — common questions
What is the income tax rate in South Africa in 2026?
South Africa uses a seven-bracket progressive tax system for 2026/27 (1 March 2026 – 28 February 2027). Rates range from 18% on taxable income up to R245,100, rising through 26%, 31%, 36%, 39%, 41%, to 45% on income above R1,878,600. Each rate is marginal — it applies only to income within that bracket. The effective rate (total tax divided by taxable income) is always lower than the marginal rate for the top bracket. Source: Income Tax Act 58/1962 · s6 · SARS Budget 2026/27.
What is the income tax threshold in South Africa in 2026?
The 2026/27 tax-free thresholds are: R99,000 for taxpayers below age 65; R153,250 for taxpayers aged 65 to below 75; and R171,300 for taxpayers aged 75 and above. These thresholds represent the taxable income level at which the gross tax from the bracket table first exceeds the applicable rebates. Taxpayers with taxable income below their applicable threshold pay no income tax. The thresholds are not adjusted for inflation on a fixed formula — they change as the rebates and brackets change in each Budget.
What are the income tax rebates in South Africa in 2026?
The 2026/27 rebates under Section 6(2) of the Income Tax Act are: Primary rebate R17,820 — all individual taxpayers; Secondary rebate R9,765 — taxpayers aged 65 and older; Tertiary rebate R3,249 — taxpayers aged 75 and older. Rebates are subtracted from gross tax (not from taxable income) after the bracket table is applied. A taxpayer aged 75 or older receives all three rebates totalling R30,834, which equates to a tax-free threshold of R171,300.
How does the medical scheme fees tax credit work in South Africa?
The medical scheme fees tax credit (s6A, Income Tax Act 58/1962) gives taxpayers a credit against their tax liability for medical aid contributions. For 2026/27: R376 per month for the main member, R376 per month for the first dependant, and R254 per month for each further dependant. A family of four (main member + 3 dependants) receives an annual credit of R15,120. The credit is applied after the bracket table and rebates. It reduces tax payable rand-for-rand and is not means-tested.
What is the difference between taxable income and gross income in South Africa?
Gross income is the total amount received before deductions — salary, bonuses, rental income, and other receipts. Taxable income is gross income minus allowable deductions: RA contributions (up to 27.5% of remuneration or taxable income, capped at R430,000 in Budget 2026/27), pension fund contributions, and other SARS-approved deductions. Income tax is calculated on taxable income, not gross income. For an employee earning R800,000 who contributes R150,000 to an RA, their taxable income is R650,000 — reducing their marginal rate from 39% to 36%.
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All seven tax brackets, three rebates, three thresholds, and medical scheme credit figures are sourced from the SARS Budget 2026/27 Tax Pocket Guide (February 2026) and the Income Tax Act 58 of 1962 (s6, s6A). The RA deduction cap of R430,000 reflects Budget 2026/27. All figures confirmed against SARS published tables.
Tax brackets — 2026/27
s6 ITA 58/1962 · Budget 2026/27
≤ R245,100
18%
R245K – R383K
26%
R383K – R530K
31%
R530K – R696K
36%
R696K – R887K
39%
R887K – R1.88M
41%
> R1,878,600
45%
Rebates — 2026/27
Primary (all)
s6(2)(a)
R17,820
Secondary (65+)
s6(2)(b)
R9,765
Tertiary (75+)
s6(2)(c)
R3,249
Total (75+ gets all)
Combined
R30,834
Thresholds
Under 65
R99,000
65 to 74
R153,250
75+
R171,300
Medical credits — s6A
Main member
R376/month
First dependant
R376/month
Further dependants
R254/month
MEDIUM DISCLAIMER
This calculator computes tax on the taxable income figure you provide. Determining what constitutes taxable income — including the deductibility of specific expenses — requires professional judgement. Consult a registered tax practitioner for a full tax computation.