South Africa Income Tax Calculator
Calculate your 2026/27 SARS income tax, primary/secondary/tertiary rebates, medical tax credits, UIF, and monthly take-home pay.
Income Details
Tax Breakdown (Tax Year 2026/27)
Monthly Net
R38,520
R462,243/year
Taxable Income
R600,000
Tax Before Rebates
R152,867
Rebates
R17,235
Medical Tax Credit
R0
PAYE
R135,632
UIF
R2,125
Total Deductions
R137,757
Marginal Rate
36%
Effective Rate
22.96%
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
How SARS taxes natural persons
South Africa uses a sliding-scale income tax with seven brackets. The lowest is 18% on the first R237,100; the highest is 45% on income above R1,817,000. After the gross tax is calculated, SARS subtracts rebates (primary R17,235 for everyone, secondary R9,444 for 65+, tertiary R3,145 for 75+) before arriving at PAYE.
Retirement contribution deduction
Contributions to pension funds, provident funds, and retirement annuities are deductible up to 27.5% of taxable income or R350,000, whichever is lower. For high earners, this is the single biggest tax-reduction lever available — a R10,000/month RA at the 36% marginal bracket saves R43,200/year in tax.
Medical Tax Credit (MTC)
Unlike a deduction, the MTC is a direct reduction of your tax bill. 2026/27: R364/month for the primary member, R364 for the first dependant, R246 for each additional. A family of four reduces tax by R14,640/year. Claimed automatically through your medical scheme's tax certificate at year-end.
UIF — unemployment insurance
1% of monthly gross capped at R17,712/month — so maximum R177.12/month deduction. Employers match it. UIF funds the country's unemployment benefits (up to 12 months of partial salary replacement), maternity leave, adoption leave, and dependants' benefit.
Common questions about Income Tax
What are the 2026/27 SARS tax brackets?+
18% on first R237,100; 26% to R370,500; 31% to R512,800; 36% to R673,000; 39% to R857,900; 41% to R1,817,000; 45% above. Rebates reduce the final tax: primary R17,235 (all), secondary R9,444 (65+), tertiary R3,145 (75+).
What are the tax-free thresholds?+
Below R95,750 (under 65), R148,217 (65-74), or R165,689 (75+), you pay no income tax. These are the rebate-adjusted thresholds — SARS does not tax you if your total tax liability after rebates is zero.
How much can I deduct for retirement contributions?+
27.5% of taxable income OR R350,000 per year, whichever is lower. This applies to pension funds, provident funds, and retirement annuities combined. Excess contributions carry forward to future years.
What is the medical tax credit?+
A rebate against your tax bill, not a deduction. 2026/27: R364/month for the primary member, R364 for the first dependant, R246 for each additional dependant. A family of four would claim R364 + R364 + R246 + R246 = R1,220/month = R14,640/year off tax.
Do I have to submit a SARS tax return?+
Auto-assessment may apply if you earn under R500k, from one employer, and have no other deductible expenses. Otherwise, filing is mandatory via eFiling or SARS MobiApp between July and October (non-provisional taxpayers) or by January 2027 (provisional taxpayers). You must file if you: earned >R500k, had multiple income sources, received rental/investment income, claimed travel or retirement annuity deductions, or were a provisional taxpayer. Non-filing penalties start at R250/month and escalate quickly.
How is capital gains tax applied in SA?+
40% of the net capital gain is included in taxable income and taxed at your marginal rate (top effective CGT: 18% for individuals at 45% marginal). Annual exclusion: R40,000 for individuals, R300,000 in the year of death. Primary residence exclusion: first R2 million of gain on sale of your main home is tax-free. Foreign investments are included at 40% × gain in rand (forex effects captured). Companies include 80% of gains — higher effective rate of ~22%.