SOUTH AFRICA TAX GUIDE · UPDATED OCTOBER 2026
South Africa Income Tax Rates 2026/27: Individuals, Capital Gains, Companies and Trusts
Current South African tax brackets, rebates, capital gains tax and corporate rates, with archived 2017/18 figures for comparison. Figures are in South African rand (R).
South Africa personal income tax rates for 2026/27
The 2027 year of assessment runs from 1 March 2026 to 28 February 2027. Under the Income Tax Act 58 of 1962, individuals pay normal income tax at progressive marginal rates. A marginal rate applies only to the portion of taxable income in that bracket, not the whole amount.
| Annual taxable income | Tax calculation before rebates |
|---|---|
| R0 - R245,100 | 18% of taxable income |
| R245,101 - R383,100 | R44,118 + 26% above R245,100 |
| R383,101 - R530,200 | R79,998 + 31% above R383,100 |
| R530,201 - R695,800 | R125,599 + 36% above R530,200 |
| R695,801 - R887,000 | R185,215 + 39% above R695,800 |
| R887,001 - R1,878,600 | R259,783 + 41% above R887,000 |
| Above R1,878,600 | R666,339 + 45% above R1,878,600 |
Source: SARS - Rates of tax for individuals.
2026/27 tax rebates and income thresholds
| Rebate | Amount |
|---|---|
| Primary rebate (all qualifying individuals) | R17,820 |
| Secondary rebate (age 65 or older) | R9,765 additional |
| Tertiary rebate (age 75 or older) | R3,249 additional |
| Age | Annual tax threshold |
|---|---|
| Below 65 | R99,000 |
| 65 to below 75 | R153,250 |
| 75 or older | R171,300 |
A rebate reduces calculated tax, whereas a tax threshold is the income level below which a person with the applicable rebates ordinarily has no normal income tax to pay. Other taxes or filing duties can still arise. SARS personal income tax guidance.
Capital gains tax (CGT) in South Africa for 2026/27
CGT is part of normal income tax, rather than a separate tax charged on the entire sale price. Eighth Schedule to the Income Tax Act generally determines capital gains and losses on disposal of assets; a taxable portion of the net capital gain is included in taxable income. Actual tax depends on the taxpayer's circumstances and applicable exclusions.
| Taxpayer | Inclusion rate | Maximum effective CGT rate |
|---|---|---|
| Individuals and special trusts | 40% | 18% |
| Companies | 80% | 21.6% |
| Other trusts | 80% | 36% |
For 2026/27, SARS lists an annual exclusion of R50,000 for individuals and special trusts, a R3 million primary-residence exclusion where conditions are met, and a R440,000 exclusion in the year of death. Specific small-business disposals can qualify for a further exclusion subject to statutory conditions. Exemptions for personal-use assets and other exclusions may apply.
Official source: SARS - Capital Gains Tax rates and exclusions.
Corporate income tax and small business corporations
The standard corporate income tax rate is 27% for company years of assessment ending from 1 April 2026 to 31 March 2027. Qualifying small business corporations (SBCs) receive graduated rates under section 12E of the Income Tax Act; eligibility conditions must be met.
Small business corporation rates: 2026/27
| Taxable income | Tax calculation |
|---|---|
| R0 - R99,000 | 0% |
| R99,001 - R365,000 | 7% above R99,000 |
| R365,001 - R550,000 | R18,620 + 21% above R365,000 |
| Above R550,000 | R57,470 + 27% above R550,000 |
Ordinary trusts (other than special trusts) are generally taxed at 45%. Turnover tax is a separate elective regime for qualifying micro businesses, with different thresholds and rates; it should not be confused with SBC income tax.
Official sources: SARS - Companies, trusts and SBCs; SARS - Turnover tax.
Residents, nonresidents and filing obligations
South African tax residents are generally taxed on worldwide income, subject to exemptions and double-taxation relief. Nonresidents are generally taxed on income from a South African source, subject to the relevant statutory rules and any applicable double-tax agreement. Tax residence is determined by legal tests and treaty provisions, not merely citizenship.
Employers normally withhold PAYE (Pay-As-You-Earn) from remuneration under the Fourth Schedule to the Income Tax Act. Qualifying taxpayers with non-salary income may have provisional tax obligations, with estimated payments credited against final liability. Refer to SARS provisional tax guidance and PAYE deduction tables.
Historical South Africa tax rates for 2017/18
Archive only: The following information relates to the 2018 tax year (1 March 2017 to 28 February 2018), not current liabilities. The original historical content has been retained; where it referred to proposed CGT rates, those are historical descriptions rather than current advice.
Personal income tax brackets: 2017/18
| Taxable Income (R) | Tax Rate | Amount (R) |
|---|---|---|
| 0 to 189,880 | 18% | Taxable Income x 18% |
| 189,881 to 296,540 | 26% | 34,178 + 26% of above R189,880 |
| 296,541 to 410,460 | 31% | 61,910 + 31% of above R296,540 |
| 410,461 to 555,600 | 36% | 97,225 + 36% of above R410,460 |
| 555,601 to 708,310 | 39% | 149,475 + 39% of above R555,600 |
| 708,311 to 1,500,000 | 41% | 209,032 + 41% of above R708,310 |
| Above R1,500,000 | 45% | 533,625 + 45% of above R1,500,000 |
2017/18 rebates: Primary R13,635; secondary R7,479; tertiary R2,493.
2017/18 tax thresholds: Under 65 R75,750; age 65 to below 75 R117,300; age 75 or older R131,150.
Capital gains tax: original 2017/18 comparison
| Type of Assessee | Tax Rate 2018 (Proposed) | Tax Rate 2017 |
|---|---|---|
| Individuals and Special Trusts | 18% | 16.4% |
| Companies | 22.4% | 22.4% |
| Other Trusts | 36% | 32.8% |
These historical maximum effective rates should not be used for current CGT calculations. The archived table labels its 2018 figures as proposed.
Corporate tax: 2016/17 and 2017/18
| Financial Year | Tax Rate |
|---|---|
| 01.04.2017 to 31.03.2018 | 28% |
| 01.04.2016 to 31.03.2017 | 28% |
In those periods the standard company rate was 28%. The historical heading mentioned trusts and SBCs, but their distinct tax regimes should not be assumed to have had the same flat rate.
Cross-check: SARS archive of historical tax rates.
Applicable tax legislation and official references
The Income Tax Act 58 of 1962 establishes the income tax framework. The Eighth Schedule deals with the computation of capital gains and losses; the Fourth Schedule provides the employees' tax and provisional-tax machinery; and section 12E concerns qualifying small business corporations. Tax rates are read with the relevant annual rate-setting legislation and official SARS schedules.
- SARS individual rates and rebates
- SARS capital gains tax
- SARS company and SBC rates
- SARS 2026 Budget Tax Guide
- Government of South Africa - Income Tax Act
This guide is general information, not individual tax advice. Verify amendments, tax-year applicability, residency, and special regimes with SARS before filing.