Income Tax South Africa
Income tax in South Africa is the slice of your pay that goes to SARS, usually deducted straight from your salary every month as PAYE. What’s left after tax and other deductions is your net pay — your take-home. This section explains how the tax brackets and rebates work, what the tax-free threshold is, and how to work out the amount that actually lands in your account.
Last updated: May 2026 · Source: SARS · National Treasury Budget
Income Tax and Net Pay, Explained
If you earn a salary, your employer works out the tax due on your income and pays it over to SARS on your behalf through the Pay-As-You-Earn (PAYE) system. This happens every month, so you never see that portion of your pay. Your net pay — the amount you actually receive — is your gross salary minus PAYE, minus your 1% UIF contribution, and minus anything else your employer deducts, such as a pension or medical aid. Understanding how PAYE is calculated is the key to understanding your payslip.
Income Tax at a Glance
| Item | Amount |
|---|---|
| Lowest tax rate | 18% |
| Highest tax rate | 45% |
| Tax-free threshold (under 65) | R99,000 / year |
| Primary rebate (under 65) | R17,820 / year |
South Africa uses a progressive system, so you never pay the top rate on your whole salary — each slice of income is taxed only at the rate of the bracket it falls into.
What You’ll Find in This Section
- Net Pay Calculator — enter your salary and see your PAYE, UIF and monthly take-home pay.
- Income Tax Tables — all seven brackets, the rebates, and the tax-free thresholds.
- Guides — plain-language explainers on how PAYE works, how to read your payslip, and how the thresholds work.
How PAYE and Your Take-Home Pay Work
SARS first works out the tax on your taxable income using the brackets, stacking your income in layers and taxing each layer at its own rate. It then subtracts your age-based rebate — the primary rebate for everyone under 65, with extra rebates added from age 65 and again from 75. The result is your annual tax, which is divided by twelve to give the PAYE taken off each month. Because of the primary rebate, anyone earning below the tax-free threshold pays no income tax at all. On top of PAYE, your 1% UIF contribution comes off, and whatever your employer deducts for pension or medical aid — what remains is your net pay.
The Tax-Free Threshold by Age
The income level below which you pay no tax rises with age, because older taxpayers get extra rebates. If you are under 65, you pay no income tax on taxable income below R99,000 a year. From age 65 to 74 the threshold rises to R153,250, and from age 75 it rises to R171,300. These thresholds are simply the point at which your rebates fully cancel out the tax on your income, which is why they go up each time an extra rebate is added.
Also in South Africa
📋 Verified — Official sources: SARS · National Treasury Budget
⚠️ This page is for informational purposes only and does not constitute legal or financial advice. KnowMyGovt is not affiliated with SARS nor the South African government. Always confirm current rates on the official SARS website.
