SARS Tax Brackets and Rates: 2025/26 Tax Year
The South African Revenue Service (SARS) applies a progressive income tax system, meaning higher earners pay a higher percentage of tax. The 2025/26 tax year runs from 1 March 2025 to 28 February 2026. Below are the official tax tables, rebates and thresholds as announced by the Minister of Finance.
2025/26 Income Tax Brackets (Individuals)
These rates apply to individuals and special trusts for the tax year ending 28 February 2026. The rates are marginal, meaning each bracket rate only applies to the portion of income that falls within that bracket.
| Taxable Income (R) | Rate of Tax |
|---|---|
| R0 - R237,100 | 18% of taxable income |
| R237,101 - R370,500 | R42,678 + 26% of amount over R237,100 |
| R370,501 - R512,800 | R77,362 + 31% of amount over R370,500 |
| R512,801 - R673,000 | R121,475 + 36% of amount over R512,800 |
| R673,001 - R857,900 | R179,147 + 39% of amount over R673,000 |
| R857,901 - R1,817,000 | R251,258 + 41% of amount over R857,900 |
| R1,817,001 and above | R644,489 + 45% of amount over R1,817,000 |
The secondary and tertiary rebates are additional to the primary rebate. A taxpayer aged 75 and older receives all three rebates, totalling R29,824 per year.
Tax Rebates for 2025/26
Tax rebates are deducted from the tax calculated using the brackets above. They reduce the final tax payable and are not the same as tax deductions (which reduce taxable income).
| Rebate | Annual Amount |
|---|---|
| Primary rebate (all taxpayers) | R17,235 |
| Secondary rebate (taxpayers aged 65 to 74) | R9,444 |
| Tertiary rebate (taxpayers aged 75 and older) | R3,145 |
Tax Thresholds for 2025/26
The tax threshold is the income level below which you pay no income tax. It is derived from the rebates and the lowest bracket rate.
| Age Group | Annual Income Threshold |
|---|---|
| Under 65 years | R95,750 |
| 65 to 74 years | R148,217 |
| 75 years and older | R165,689 |
Medical Tax Credits (MTC) for 2025/26
Medical scheme contributions qualify for a monthly tax credit rather than a deduction. The credit is applied against your tax liability.
For taxpayers who are not members of a medical scheme, out-of-pocket qualifying medical expenses exceeding a threshold can be claimed as an additional medical expense tax credit.
| Members Covered | Monthly Credit per Member |
|---|---|
| Main member | R364 |
| First dependant | R364 |
| Each additional dependant | R246 |
How to Calculate Your Income Tax
- Determine your gross income for the year (all salary, freelance earnings, rental income and other income).
- Subtract any allowable deductions such as retirement annuity contributions (up to 27.5% of taxable income, max R350,000), travel expenses and home office expenses if applicable.
- The result is your taxable income.
- Apply the tax bracket table to calculate the gross tax on your taxable income.
- Subtract your applicable rebates (primary, secondary, tertiary) to get your net normal tax.
- Subtract any medical tax credits and other credits.
- If you had PAYE deducted by your employer during the year, subtract that to determine if you owe additional tax or are due a refund.
The primary residence exclusion for capital gains on the sale of a home is R2,000,000. If your gain does not exceed this amount, no CGT is payable on the sale of your primary residence.
Capital Gains Tax (CGT) for 2025/26
Capital gains tax is levied on profits made from selling assets such as property, shares or a business. The annual exclusion for individuals is R40,000.
The inclusion rate for individuals is 40%, meaning 40% of your net capital gain is included in your taxable income and taxed at your marginal rate. The effective maximum CGT rate for individuals is therefore 18% (45% x 40%).