Every SARS rate an individual or small employer needs for the 2026/2027 tax year (1 March 2026 to 28 February 2027), on one page: income tax rates, rebates, tax thresholds, medical tax credits, UIF, SDL and the retirement lump sum tables.
How to use these tables
Find your annual taxable income in the income tax table, take the base amount for that bracket and add the marginal rate on the part of your income above the bracket floor. Then subtract the rebate for your age. Medical tax credits come off after that, month by month through payroll.
Example (2026/2027, under 65, R300,000 taxable income): R44,118 + 26% of R54,900 = R58,392, less the primary rebate of R17,820 = R40,572 for the year, or about R3,381 a month.
For your own figures, the PAYE calculator does this sum for you, and the salary calculator adds UIF, pension and medical aid to show your take-home pay.
2026/2027 other rates
These figures come from separate SARS pages and the 2026 Budget, so they are listed for the 2026/2027 year only. Several changed this year, including the retirement deduction cap, the tax-free savings limit and the CGT annual exclusion.
Interest and dividends
| Interest exemption, under 65 | R23,800 |
| Interest exemption, 65 and older | R34,500 |
| Dividends tax (withheld) | 20% |
Tax-free savings accounts
| Annual contribution limit | R46,000 |
| Lifetime contribution limit | R500,000 |
| Tax on contributions above the limits | 40% |
Capital gains tax
| Annual exclusion | R50,000 |
| Exclusion in the year of death | R440,000 |
| Primary residence exclusion | R3,000,000 |
| Maximum effective rate, individuals | 18% |
Retirement fund contributions
| Deduction limit | 27.5% of the greater of remuneration or taxable income |
| Annual cap | R430,000 |
| Contributions above the cap | Carried forward |
Travel allowance
| Simplified rate per kilometre | R4.95 |
| Allowance included for PAYE | 80% |
| If at least 80% business use | 20% |
The simplified rate only applies when the employer pays no other vehicle allowance or reimbursement apart from parking and tolls. See the travel allowance calculator.
VAT
| Standard rate | 15% |
| Compulsory registration (taxable supplies a year) | Above R2.3 million |
| Voluntary registration from | R120,000 |
The higher registration thresholds apply from 1 April 2026.
Donations tax and estate duty
| Donations tax | 20% up to R30 million, 25% above |
| Annual exemption, natural persons | R150,000 |
| Estate duty | 20% up to R30 million, 25% above |
| Estate duty basic deduction | R3,500,000 |
Employment Tax Incentive (ETI), per qualifying employee per month
For qualifying employees aged 18 to 29 earning less than R7,500 a month. SARS lists these amounts as applying from 1 April 2025. The employer claims ETI as a reduction of the PAYE it pays over, and the employee's pay is not affected.
| Monthly remuneration | First 12 months | Second 12 months |
|---|
| R0 to R2,499.99 | 60% of monthly remuneration | 30% of monthly remuneration |
| R2,500 to R5,499.99 | R1,500 | R750 |
| R5,500 to R7,499.99 | R1,500 less 75% of (remuneration minus R5,500) | R750 less 37.5% of (remuneration minus R5,500) |
Work out the claim for each employee with the ETI calculator.
Frequently asked questions
What are the SARS income tax rates for 2026/2027?
There are 7 brackets, starting at 18% on taxable income up to R245,100 and rising to 45% on income above R1,878,600. Each bracket has a fixed base amount plus a marginal rate on the portion above the bracket floor, so only the income above each step is taxed at the higher rate.
What is the tax threshold for 2026/2027?
You pay no income tax if your taxable income does not exceed R99,000 a year (under 65), R153,250 (65 to 74) or R171,300 (75 and older). For someone under 65 that works out to about R8,250 a month.
How much are the tax rebates for 2026/2027?
Every individual gets the primary rebate of R17,820. From age 65 the secondary rebate of R9,765 is added, and from age 75 the tertiary rebate of R3,249. Rebates are subtracted from the tax worked out on the brackets, not from your income.
How much is the medical aid tax credit in 2026/2027?
The medical scheme fees tax credit is R376 a month for the main member, R752 for the main member plus one dependant, and R254 for each further dependant. Where contributions are paid through payroll, the employer applies the credit in the monthly PAYE calculation.
What is the maximum UIF contribution?
UIF is 1% from the employee and 1% from the employer, worked out on remuneration up to R17,712 a month. The most an employee pays is R177.12 a month, and the employer matches it.
When does an employer have to pay SDL?
The Skills Development Levy is 1% of total remuneration paid to employees. Employers paying less than R500,000 a year in total remuneration are exempt. SDL is an employer cost and is never deducted from the employee's pay.
How much interest can I earn tax-free in 2026/2027?
Interest from a South African source is exempt up to R23,800 a year if you are under 65, and R34,500 if you are 65 or older. Interest earned inside a tax-free savings account does not count towards this limit.
Why does SARS call 2026/2027 the "2027 tax year"?
SARS names a tax year after the calendar year in which it ends. The year from 1 March 2026 to 28 February 2027 is the 2027 year of assessment, which is why SARS pages and eFiling show "2027" for the tables on this page.