How do South African tax brackets work?

South Africa uses a progressive tax system. You only pay the higher rate of tax on the portion of your income that falls within that specific bracket, not your entire salary. Moving into a higher bracket will never cause you to take home less money than before.

What is the personal tax-free threshold for the 2026 tax year?

For the 2026 tax year, individual taxpayers under the age of 65 do not pay income tax if their annual taxable income is below R95,750. For taxpayers aged 65 to 74, the threshold is R148,217, and for those 75 and older, it is R165,689.

How much can I deduct for retirement fund contributions in 2026?

Under Section 11F of the Income Tax Act, you can deduct up to 27.5% of the greater of your remuneration or taxable income, capped at R350,000 for the 2026 tax year. Any excess contributions are carried forward to the following tax year.

What are the tax credits for medical aid members in 2026?

For the 2026 tax year, the monthly medical scheme tax credit is R364 for the principal member, R364 for the first dependant, and R246 for each additional dependant.

Why should a business owner consult a professional accountant for tax planning?

Working with a professional accounting partner allows you to structure director salaries and corporate benefits to match the sliding scales of personal tax brackets and corporate SBC rates. This legal structuring optimises your overall tax efficiency and preserves cash flow.

South African Tax Brackets 2026 | Complete Historical Guide