Knowledge Centre | Tax Tables
RATES OF TAX FOR INDIVIDUALS
2027 tax year (1 March 2026 – 28 February 2027)
| Taxable income (R) | Rates of tax (R) |
|---|---|
| 0 – 245 100 | 18% of taxable income |
| 245 101 - 383 100 | 44 118 + 26% of taxable income above 245 100 |
| 383 101 - 530 200 | 79 998 + 31% of taxable income above 383 100 |
| 530 201 - 695 800 | 125 599 + 36% of taxable income above 530 200 |
| 695 801 - 887 000 | 185 215 + 39% of taxable income above 695 800 |
| 887 001 - 1 878 600 | 259 783 + 41% of taxable income above 887 000 |
| 1 878 601 and above | 666 339 + 45% of taxable income above 1 878 600 |
| Tax Rebate | 2027 |
| Primary | R17 235 |
| Secondary (65 and older) | R9 444 |
| Tertiary (75 and older) | R3 145 |
| Tax Thresholds | 2027 |
| Under 65 | R95 750 |
| 65 to below 75 | R148 217 |
| 75 and older | R165 689 |
COMPANIES, TRUSTS AND SMALL BUSINESS CORPORATIONS (SBC)
COMPANIES
| For years of assessment ending during the following: | Rate of Tax |
|---|---|
| From 31 March 2023 | 27% |
TRUSTS (other than special trusts)
| Year of assessment | Rate of Tax |
|---|---|
| 1 March 2026 – 28 February 2027 | 45% |
SMALL BUSINESS CORPORATIONS (SBC)
Financial years ending on any date between 1 April 2026 and 31 March 2027:
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 0 – 99 000 | 0% |
| 99 001 – 365 000 | 7% of taxable income above 99 000 |
| 365 001 – 550 000 | 18 620 + 21% of taxable income above 365 000 |
| 550 001 and above | 57 470 + 27% of taxable income above 550 000 |
INTERESTS AND DIVIDENDS
INTEREST EXEMPTIONS
Interest from a South African source earned by a natural person is exempt, per annum, up to an amount of:
| | 2027 |
|---|---|
| Person younger than 65 | R23 800 |
| Person 65 and older | R34 500 |
From 1 March 2015 (2016 tax year), a final withholding tax at a rate of 15% will be charged on interest from a South African source payable to non-residents.
Interest is exempt where earned by a non-resident who is physically absent from South Africa for at least 183 days during the tax year and doesn't carry on a business in South Africa.
Dividends Tax
Dividends Tax is a tax levied on the shareholder at a rate of 20% (15% prior to 22 February 2017) on dividends paid.
Withholding Tax Non South African Residents
A withholding tax of 15% is payable when interest from a South African source are paid to Non-residents subject to certain exemptions.
RETIREMENT LUMP SUM BENEFITS
Tax relief on retirement lump sum benefits is allocated once in a lifetime in other words if it’s used up you can’t claim it again. For example, if a person used R300 000 of the R550 000 with the first lump sum, the balance left is R250 000 and once this is used up this relief is not available again.
WITHDRAWAL BENEFIT
2026 tax year (1 March 2026 - 28 February 2027)
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 0 – 27 500 | 0% |
| 27 501 - 726 000 | 18% of each R above 27 500 |
| 726 001 - 1 089 000 | 125 730 + 27% of each R above 726 000 |
| 1 089 001 and above | 223 740 + 36% of each R above 1 089 000 |
RETIREMENT & DEATH BENEFITS or SEVERANCE BENEFITS
2026 tax year (1 March 2026 - 28 February 2027)
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 1 – 550 000 | 0% of taxable income |
| 550 001 - 770 000 | 18% of each R above 550 000 |
| 770 001 – 1 155 000 | 39 600 + 27% of each R above 770 000 |
| 1 155 001 and above | 143 550 + 36% of each R above 1 155 000 |
DEDUCTIONS
With effect 1 March 2016 the tax deductions for contributions made to pension funds, Provident funds and retirement annuity funds has been significantly amended and tax deductions on all three funds will be identical.
The deduction will be limited to:
27.5% of the greater of:
1) Taxable Income (excluding any lump sum benefits or severance benefits) but before
donations deduction
2) Remuneration (excluding any lump sum benefits or severance benefits)
NB: Limit of R350 000 per year
Excess contributions not allowed as deductions are carried forward to the following year of assessment. Contributions made by employers on behalf of employees would be a taxable fringe benefit in the hand of the employees but will also be regarded as a contribution made by the employee, therefore deductible in the hands of the employee subject to the above limitations.
CAPITAL GAINS TAX (CGT)
Capital gains tax (CGT) is not a separate tax but forms part of income tax. A capital gain arises when you dispose of an asset (on or after 1 October 2001) for proceeds that exceed its base cost.
The relevant legislation is contained in the Eighth Schedule to the Income Tax Act 58 of 1962.
Capital gains are taxed at a lower effective tax rate than ordinary income. Not all assets attract CGT and certain capital gains and losses are disregarded.
CGT applies to individuals, trusts and companies.
A resident, as defined in the Income Tax Act 58 of 1962, is liable for CGT on assets located both in and outside South Africa.
A non-resident is liable to CGT only on immovable property in South Africa or assets of a “permanent establishment” (branch) in South Africa. Certain indirect interests in immovable property such as shares in a property company are deemed to be immovable property.
| Type | 2027 |
|---|---|
| Individuals and Special Trusts | 18% |
| Companies | 21.6% |
| Other Trusts | 36% |
EXCLUSIONS
Events that trigger a disposal include a sale, donation, exchange, loss, death and emigration. The following are some of the specific exclusions:
- R3 000 000 gain or loss on the disposal of a primary residence;
- Most personal use assets.
- Retirement benefits'
- Payments under original long-term insurance policies;
- Annual exclusion of R50 000 capital gain or capital loss is granted to individuals and special trusts;
- Small business exclusion of capital gains of R2.7 million for individuals (who are at least 55 years old) when a small business with a market value not exceeding R15 million is disposed of; and
- The exclusion granted to individuals is increased to R440 000 for the year of death.
INCLUSION RATE
A net capital gain for the current year of assessment is multiplied by the inclusion rate applicable to the person to arrive at the taxable capital gain. The inclusion rates are set out in the table below:
| Type of person | Inclusion rate (%) |
|---|---|
| Natural person/Special Trusts | 40% |
| Company | 80% |
| Trust | 80% |
ESTATE DUTY
The general rule is that if the taxpayer is ordinarily resident in the Republic of South Africa at the time of Death, all of his assets (including deemed property), wherever they are situated, will be included in the gross value of his estate for the determination of duty payable thereon. Estate duty is currently levied at 20% on the first R30 million of the dutiable estate. Estate Duty will be levied at 25% on the dutable estate in excess of R30 million.
Deemed property includes: Insurance Policies on the life of the deceased, claims in terms of the matrimonial property act as well as property that the deceased was competent to dispose of immediately prior to death.
The most important deductions are:
- Debts due at date of death
- Bequests to various charities
- Bequests to a surviving spouse
The Act allows for a R3.5 million estate duty abatement. This abatement could rollover from the deceased to a surviving spouse so that the surviving spouse can use a R7 million abatement on death. The portability of the deduction will apply to the extent that the first dying spouse did not use the whole abatement.
There is relief from Estate Duty in the case of the same property being included in the estates of taxpayers dying within 10 years of each other. The deduction is calculated on a sliding scale varying from 100% where the taxpayers die within two years of each other and 20% where the deaths are within 8 – 10 years of each other.
DONATIONS TAX
Donations tax is payable by any South African resident. The donations tax provisions do not apply to non-residents even if they donate South African assets. Donations tax is payable on the value of any gratuitous disposal of property (including the disposal of property for inadequate consideration) and the renunciation of rights.
Principal Exemptions
- Donation between spouses
- Donations to charitable, ecclesiastical and educations institutions, and certain public bodies in the Republic of South Africa (limited to certain thresholds).
- Donations by a natural person not exceeding R100 000 per year
- The donation of assets situated outside the Republic, subject to certain conditions
- Donations by companies not considered to be public companies up to R10 000 per annum
- Donations where the donee will not benefit until the death of the donor
- Donations made by companies which are recognised as public companies for tax purposes
- Donations cancelled within six months of the effective date
- Property disposed of under an in pursuance of any trust
- Donations between companies forming part of the same group of companies
- Reasonable bona fide contributions to the maintenance of individuals
Rates
Donations tax is payable at the end of the month following the month in which the donation was made at a flat rate of 20% on the first R30 million donations. Donations tax on the donations in excess of R30 million for the preceding 12 months will be 25%.