Income Tax Calculator
Enter your annual taxable income to see a full breakdown across the SARS 2025/26 tax brackets - including your marginal rate, effective rate, and the rand amount owed in each bracket.
Your Details
2025/26 Tax Brackets
| Taxable income | Rate | Tax owed |
|---|---|---|
| R 0 – R 237 100 | 18.00% | - |
| R 237 100 – R 370 500 | 26.00% | - |
| R 370 500 – R 512 800 | 31.00% | R 111 307,00 |
| R 512 800 – R 673 000 | 36.00% | - |
| R 673 000 – R 857 900 | 39.00% | - |
| R 857 900 – R 1 817 000 | 41.00% | - |
| R 1 817 000+ | 45.00% | - |
Results
Annual Income Tax
R 89 704,00
18.69% effective rate · 31.00% marginal
Monthly PAYE
R 7 475,33
Gross Tax (brackets)
R 111 307,00
Total Rebates + Credits
R 21 603,00
Tax-free Threshold
R 95 750,00
2025/26 SARS tax year · Verify with a tax practitioner for complex income sources.
How the Income Tax Calculator Works
South Africa uses a progressive tax system - the more you earn, the higher the rate applied to each successive portion of income. Crucially, a higher bracket does not mean all your income is taxed at the top rate; only the portion that falls within each band is taxed at that band's rate.
The calculator applies the seven SARS 2025/26 brackets to your taxable income, summing the tax owed in each. It then subtracts the primary rebate (R17 235 for taxpayers under 65), secondary rebate (R9 444 for ages 65–74), and tertiary rebate (R3 145 additional for those 75+) to arrive at net tax payable. Medical aid tax credits are applied if you have dependants on a medical scheme - R364 for the principal member and R246 per additional dependant each month.
Two rates are shown: your marginal rate is the rate that applies to each additional rand you earn - the rate of the highest bracket you reach. Your effective rate is your total tax as a percentage of total income - always lower than the marginal rate. Confusing marginal with effective rate is one of the most common misconceptions about income tax in South Africa.
The bracket table highlights the band your income falls into, making it easy to see how close you are to the next threshold and how much additional income would move you into it.
How to Use This Calculator
- 1
Enter your annual taxable income
Taxable income is your gross income minus allowable deductions such as retirement annuity contributions and pension fund contributions. If you are salaried with no other income sources, this is approximately your annual gross salary less any approved RA deductions.
- 2
Select your age group
Taxpayers aged 65–74 qualify for an additional secondary rebate and those 75+ receive the tertiary rebate on top. This increases the effective tax-free threshold significantly - to R148 217/year for the 65–74 age group.
- 3
Add medical aid dependants
Enter the number of people on your medical aid including yourself. SARS deducts a fixed monthly credit per dependant directly from your tax bill - these are credits, not deductions, so they reduce rand-for-rand what you owe.
- 4
Review the bracket breakdown table
Each row shows how much of your income falls in that bracket and the tax generated. The active bracket is highlighted. Use this to understand what a salary increase to the next bracket actually costs in extra tax - often far less than people assume.
- 5
Compare marginal vs effective rate
Use your marginal rate when evaluating the after-tax value of a raise or a deduction. Use your effective rate when comparing your overall tax burden across years or to other countries.
Frequently Asked Questions
- What are the income tax brackets in South Africa for 2025/26?
- The seven SARS 2025/26 brackets are: 18% on income up to R237 100; 26% on R237 101–R370 500; 31% on R370 501–R512 800; 36% on R512 801–R673 000; 39% on R673 001–R857 900; 41% on R857 901–R1 817 000; and 45% on income above R1 817 000. The primary rebate of R17 235 means no tax is payable below R95 750 per year for taxpayers under 65.
- Does moving into a higher tax bracket mean I take home less money?
- No - this is a common myth. South Africa's tax system is marginal, so only the income above the bracket threshold is taxed at the new rate. If you earn R370 000 and get a R1 000 raise, only that R1 000 is taxed at 31% - not your entire salary. You always take home more money when you earn more.
- What deductions can reduce my taxable income in South Africa?
- The main personal deductions are retirement fund contributions (pension, provident, or RA - up to 27.5% of income, capped at R350 000/year); travel allowances if you use a personal vehicle for business; home office expenses if you qualify under SARS criteria; and donations to approved public benefit organisations (section 18A, up to 10% of taxable income).
- What is the difference between a tax deduction and a tax credit in South Africa?
- A deduction reduces your taxable income before brackets are applied - its value depends on your marginal rate. A credit reduces your actual tax bill rand-for-rand, regardless of your bracket. Medical aid credits are credits (equal value for all taxpayers), while RA contributions are deductions (worth more to high earners in top brackets).
- Do I need to file a tax return if my employer deducts PAYE?
- Not necessarily. SARS auto-assesses many salary-only taxpayers. However, if you have additional income (rental, interest above R23 800, freelance), capital gains, significant deductions to claim, or received a travel allowance, you must file a full return to avoid penalties and to potentially claim a refund.
- How is Capital Gains Tax calculated in South Africa?
- When you sell a capital asset (shares, property, business) at a profit, 40% of the gain is included in your taxable income for the year (this is the inclusion rate for individuals). That inclusion amount is then taxed at your marginal income tax rate. The effective CGT rate for someone in the 45% bracket is therefore 18% (45% × 40%). An annual exclusion of R40 000 applies before any gain is included.