SARS Tax Brackets and Tables (2026)
Understanding South African tax brackets and tax tables is essential for calculating your tax liability accurately and planning your finances effectively. The 2026 tax year brings updated thresholds, rates, and rebates that every taxpayer should understand. This comprehensive guide covers all aspects of South African tax brackets and tables for the 2026 tax year.
Understanding Tax Brackets
What Are Tax Brackets?
Tax brackets are income ranges that determine the rate at which your income is taxed. South Africa uses a progressive tax system, meaning higher income is taxed at higher rates. Your income is taxed in portions, with each portion taxed at the rate for its bracket.
Key Concepts:
- Progressive taxation: Higher earners pay higher rates
- Marginal tax rate: Rate on your highest bracket
- Effective tax rate: Average rate across all your income
- Tax-free threshold: Income level below which no tax is due
2026 Tax Year Thresholds
Income Tax Thresholds
Individuals Under 65:
- Tax threshold: R95,750 per year
- No tax payable if income is below this amount
- Applies to most working-age taxpayers
Individuals 65 and Older:
- Tax threshold: R148,217 per year
- Higher threshold for senior citizens
- Recognizes reduced earning capacity
Individuals 75 and Older:
- Tax threshold: R165,689 per year
- Highest threshold for elderly taxpayers
- Further recognition of age-related factors
Important Notes:
- Thresholds apply to taxable income (after deductions)
- Different thresholds for different age groups
- Thresholds may be adjusted annually
- Always verify current thresholds with SARS
2026 Tax Brackets and Rates
Individual Tax Rates (2026 Tax Year)
Tax Bracket Structure:
Bracket 1: R0 - R237,100
- Tax rate: 18% of taxable income
- Applies to first R237,100 of taxable income
- Most taxpayers fall into this bracket
Bracket 2: R237,101 - R370,500
- Tax rate: 26% of taxable income above R237,100
- Plus: R42,678 (tax on first bracket)
- Effective rate increases progressively
Bracket 3: R370,501 - R512,800
- Tax rate: 31% of taxable income above R370,500
- Plus: R77,362 (tax on previous brackets)
- Higher income earners
Bracket 4: R512,801 - R673,000
- Tax rate: 36% of taxable income above R512,800
- Plus: R121,475 (tax on previous brackets)
- Upper-middle income range
Bracket 5: R673,001 - R857,900
- Tax rate: 39% of taxable income above R673,000
- Plus: R189,527 (tax on previous brackets)
- High income earners
Bracket 6: R857,901 - R1,817,000
- Tax rate: 41% of taxable income above R857,900
- Plus: R261,536 (tax on previous brackets)
- Very high income earners
Bracket 7: Above R1,817,000
- Tax rate: 45% of taxable income above R1,817,000
- Plus: R644,489 (tax on previous brackets)
- Highest income bracket
Tax Calculation Example
Example: Taxable Income of R500,000
- First R237,100: R237,100 × 18% = R42,678
- Next R133,400 (R237,101 to R370,500): R133,400 × 26% = R34,684
- Next R129,500 (R370,501 to R500,000): R129,500 × 31% = R40,145
Total Tax Before Rebates:
- R42,678 + R34,684 + R40,145 = R117,507
After Primary Rebate (R17,235):
- R117,507 - R17,235 = R100,272
Effective Tax Rate:
- R100,272 ÷ R500,000 = 20.05%
2026 Tax Rebates
Primary Rebate
Amount: R17,235
- Applies to all taxpayers
- Reduces tax liability
- Automatically applied
- Not refundable if tax is zero
Secondary Rebate (Age 65+)
Amount: R9,444
- Additional rebate for taxpayers 65 and older
- Reduces tax further
- Combined with primary rebate
- Total rebate: R26,679 for seniors
Tertiary Rebate (Age 75+)
Amount: R3,145
- Additional rebate for taxpayers 75 and older
- Further tax reduction
- Combined with primary and secondary rebates
- Total rebate: R29,824 for elderly
Medical Tax Credits
Medical Scheme Fees Tax Credit
2026 Rates:
- R364 per month for first member
- R364 per month for each additional dependent
- Maximum credit per family
- Reduces tax liability
Calculation:
- Monthly credit × 12 months
- Applied against tax liability
- Non-refundable credit
- Must be a registered medical scheme member
Additional Medical Expenses Tax Credit
Qualifying Expenses:
- Medical expenses not covered by medical scheme
- Qualifying disability expenses
- Subject to certain limits
- Requires proper documentation
Calculation:
- Complex calculation based on age and expenses
- Different rates for different age groups
- Subject to annual limits
- Requires detailed record-keeping
Capital Gains Tax (CGT)
CGT Inclusion Rates (2026)
Individuals:
- 40% of capital gain included in taxable income
- Effective CGT rate depends on income tax bracket
- Annual exclusion: R40,000
- Primary residence exclusion: R2 million
Companies:
- 80% of capital gain included
- Higher inclusion rate
- Different rules apply
Trusts:
- 80% of capital gain included
- Subject to specific trust rules
- May have different implications
Tax Tables for Different Scenarios
PAYE Tax Tables
Monthly Tax Tables:
- Used by employers for PAYE deductions
- Based on annual tax brackets
- Calculated monthly
- Includes UIF and SDL
Bi-Weekly Tables:
- For employees paid bi-weekly
- Adjusted calculations
- Same tax rates
- Different payment frequency
Provisional Tax
Provisional Taxpayers:
- Estimated tax payments
- Based on expected income
- Two payments per year
- Final adjustment at year-end
How to Use Tax Tables
Step 1: Determine Taxable Income
Calculate:
- Total income from all sources
- Minus allowable deductions
- Equals taxable income
- Use this for tax calculation
Step 2: Apply Tax Brackets
Process:
- Start with lowest bracket
- Calculate tax for each bracket
- Add up all bracket taxes
- This is gross tax liability
Step 3: Apply Rebates
Deductions:
- Subtract primary rebate
- Subtract age rebates if applicable
- Subtract medical tax credits
- Result is net tax liability
Step 4: Account for PAYE
Reconciliation:
- Compare calculated tax to PAYE paid
- Determine refund or payment due
- File return to finalize
- Receive refund or make payment
Important Considerations
Tax Planning Tips
Income Splitting:
- Understand tax implications
- Legal tax planning strategies
- Consider family structures
- Get professional advice
Timing of Income:
- Understand tax year timing
- Plan income recognition
- Consider deferral strategies
- Balance current vs. future tax
Deductions:
- Maximize legitimate deductions
- Keep proper records
- Understand deduction limits
- Claim all eligible expenses
Changes for 2026
Key Updates:
- Threshold adjustments
- Rebate increases
- Bracket adjustments
- Medical credit updates
Always Verify:
- Check official SARS sources
- Verify current rates
- Confirm threshold amounts
- Stay updated on changes
Common Questions About Tax Brackets
How Do Tax Brackets Work?
Your income is divided into portions, with each portion taxed at its bracket rate. You don't pay the highest rate on all your income, only on the portion in that bracket.
What Is My Marginal Tax Rate?
Your marginal tax rate is the rate you pay on your last rand of income. This is the rate that applies to additional income you earn.
What Is My Effective Tax Rate?
Your effective tax rate is your total tax divided by your total income. This gives you the average rate you pay across all your income.
Do Tax Brackets Change Annually?
Yes, tax brackets, thresholds, and rebates are typically adjusted annually in the budget. Always check the current year's rates.
How Do Age Rebates Work?
Taxpayers 65 and older receive additional rebates that reduce their tax liability. These are in addition to the primary rebate.
Using Online Tax Calculators
SARS eFiling Calculator
Features:
- Built into eFiling platform
- Automatic calculations
- Based on current tax tables
- Accurate and up-to-date
Third-Party Calculators
Considerations:
- Verify calculator accuracy
- Check it uses current rates
- Understand limitations
- Use as estimate only
Conclusion
Understanding South African tax brackets and tables is essential for accurate tax planning and compliance. The 2026 tax year brings specific rates, thresholds, and rebates that every taxpayer should understand. By familiarizing yourself with the tax bracket structure, rebates, and calculation methods, you can better plan your finances and ensure accurate tax compliance.
Remember that tax laws can change, so always verify current information with SARS or consult a qualified tax practitioner for personalized advice.
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