South Africa Income Tax Rates 2026-27: Personal, Capital Gains and Corporate Tax
A practical guide to South African income tax for individuals, residents and non-residents, trusts, companies and qualifying small businesses, with historical 2018-19 figures retained for reference.
Personal income tax rates for 2026-27
South Africa imposes progressive normal tax on individuals under the Income Tax Act 58 of 1962. The marginal rate applies only to the portion of taxable income within each band. Section 5 provides for normal tax; annual rate schedules determine the applicable amounts.
| Annual taxable income (R) | Normal tax calculation (R) |
|---|---|
| 1 - 245,100 | 18% of taxable income |
| 245,101 - 383,100 | 44,118 + 26% above 245,100 |
| 383,101 - 530,200 | 79,998 + 31% above 383,100 |
| 530,201 - 695,800 | 125,599 + 36% above 530,200 |
| 695,801 - 887,000 | 185,215 + 39% above 695,800 |
| 887,001 - 1,878,600 | 259,783 + 41% above 887,000 |
| Above 1,878,600 | 666,339 + 45% above 1,878,600 |
Special trusts generally use individual tax brackets. Ordinary trusts are generally taxed at a flat 45% rate, subject to applicable exceptions.
Tax rebates and thresholds for 2026-27
Rebates reduce calculated normal tax; thresholds indicate taxable income below which no normal tax is generally payable to an individual entitled to the relevant rebates.
| Rebate | Amount (R) |
|---|---|
| Primary (all individuals) | 17,820 |
| Secondary (age 65 and older) | 9,765 additional |
| Tertiary (age 75 and older) | 3,249 additional |
| Age | Annual tax threshold (R) |
|---|---|
| Under 65 | 99,000 |
| 65 to under 75 | 153,250 |
| 75 and older | 171,300 |
Other relief, including qualifying medical scheme fees and retirement-fund contributions, depends on individual circumstances and the applicable provisions of the Income Tax Act.
Capital gains tax in South Africa
Capital gains tax (CGT) is part of normal income tax, not a separate standalone tax. The Eighth Schedule to the Income Tax Act governs the calculation of capital gains and losses. A prescribed proportion of a net capital gain is included in taxable income.
| Taxpayer | Inclusion rate | Maximum effective CGT rate |
|---|---|---|
| Individuals and special trusts | 40% | 18% |
| Companies | 80% | 21.6% |
| Other trusts | 80% | 36% |
For the 2027 tax year, the annual CGT exclusion for individuals and special trusts is R50,000; the primary residence exclusion is R3 million of qualifying gain or loss. Other exclusions and special rules may apply. A non-resident can also be subject to South African CGT on qualifying immovable property and certain property-rich interests.
Corporate income tax and trusts
The standard company tax rate is 27% of taxable income for years of assessment ending from 1 April 2026 through 31 March 2027. This is distinct from the historic 28% rate. Eligible entities in approved special economic zones may qualify for a 15% rate subject to conditions.
| Entity | 2026-27 normal tax rate |
|---|---|
| Standard companies | 27% |
| Ordinary trusts (not special trusts) | 45% |
| Qualifying special economic zone companies | Potentially 15%, subject to requirements |
Corporate taxable income is generally determined under the Income Tax Act. Tax residence, permanent establishments, treaty provisions, deductions and assessed losses can change the final liability.
Small business corporation rates for 2026-27
Qualifying small business corporations may use graduated rates under section 12E of the Income Tax Act. These apply to company years of assessment ending from 1 April 2026 through 31 March 2027. Eligibility restrictions include ownership, gross income and business activity conditions.
| Taxable income (R) | Tax payable (R) |
|---|---|
| 1 - 99,000 | 0 |
| 99,001 - 365,000 | 7% above 99,000 |
| 365,001 - 550,000 | 18,620 + 21% above 365,000 |
| Above 550,000 | 57,470 + 27% above 550,000 |
Turnover tax for qualifying micro businesses
Turnover tax is an optional simplified regime for qualifying micro businesses, generally subject to a turnover ceiling of R2.3 million and other eligibility conditions. It is calculated on taxable turnover rather than ordinary taxable profit.
| Taxable turnover (R) | Tax payable (R) |
|---|---|
| 1 - 600,000 | 0 |
| 600,001 - 950,000 | 1% above 600,000 |
| 950,001 - 1,400,000 | 3,500 + 2% above 950,000 |
| Above 1,400,000 | 12,500 + 3% above 1,400,000 |
See SARS company and small business rates and turnover tax tables.
Tax residents and non-residents
South African tax residents are generally taxed on worldwide income, subject to exclusions and double taxation agreements. Non-residents are generally taxed on South African-source income, with special rules for certain gains. Residence for individuals can be established under the ordinary residence or physical presence tests; treaty residence may alter the outcome. See the SARS personal income tax guidance.
PAYE and provisional tax
Employees' tax (PAYE) is withheld from qualifying remuneration. Provisional tax is a method of paying normal tax in instalments for certain taxpayers, including persons earning income outside standard payroll withholding. See the SARS provisional tax guide.
Historical tax rates: 2018-19
Archive only. The following rates relate to the year of assessment from 1 March 2018 to 28 February 2019 and must not be used to calculate current liabilities.
Individual income tax, 2018-19
| Taxable income (R) | Tax calculation (R) |
|---|---|
| 0 - 195,850 | 18% |
| 195,851 - 305,850 | 35,253 + 26% above 195,850 |
| 305,851 - 423,300 | 63,853 + 31% above 305,850 |
| 423,301 - 555,600 | 100,263 + 36% above 423,300 |
| 555,601 - 708,310 | 147,891 + 39% above 555,600 |
| 708,311 - 1,500,000 | 207,448 + 41% above 708,310 |
| Above 1,500,000 | 532,041 + 45% above 1,500,000 |
2018-19 rebates and thresholds
| Category | Historical amount (R) |
|---|---|
| Primary rebate | 14,067 |
| Secondary rebate (65+) | 7,713 |
| Tertiary rebate (75+) | 2,574 |
| Tax threshold under 65 | 78,150 |
| Tax threshold age 65 to under 75 | 121,000 |
| Tax threshold age 75+ | 135,300 |
Historical company, CGT and small-business rates
In 2018-19, the standard company income tax rate was 28%, while ordinary trusts were generally taxed at 45%. The maximum effective CGT rates were 18% for individuals and special trusts, 22.4% for companies and 36% for other trusts.
| Small business corporation taxable income (R) | 2018-19 rate |
|---|---|
| 0 - 78,150 | 0% |
| 78,151 - 365,000 | 7% on amount above 78,150 |
| 365,001 - 550,000 | 21% marginal rate |
| Above 550,000 | 28% marginal rate |
Historical turnover tax, 2018-19
| Turnover (R) | Marginal rate |
|---|---|
| 0 - 335,000 | 0% |
| 335,001 - 500,000 | 1% |
| 500,001 - 750,000 | 2% |
| Above 750,000 | 3% |
For official historical figures, consult the SARS tax rate archive and year-specific tables. The historical marginal rates above are not flat taxes on all taxable income.
Official legal and tax references
- SARS: individual income tax rates and rebates
- SARS: capital gains tax
- SARS: company, trust and SBC tax
- SARS: turnover tax
- SARS: 2026 Budget tax guide
- Income Tax Act 58 of 1962: government legislation portal
This article provides general tax information. Tax treatment depends on the relevant assessment year, taxpayer status and applicable legislation.