South Africa's personal income tax system is administered by the South African Revenue Service (SARS) and uses a progressive 7-bracket structure. For the 2025/26 tax year (1 March 2025 to 28 February 2026), understanding these brackets, rebates, and deductions is essential for calculating your PAYE tax accurately.
This guide covers the complete SARS tax table, age-based rebates, UIF, medical tax credits, retirement fund deductions, and includes worked examples at three different salary levels. You can also use our South Africa PAYE Calculator to compute your take-home pay instantly.
2025/26 Tax Brackets
The following table shows the SARS income tax brackets for the 2025/26 tax year. Tax is calculated on annual taxable income (after allowable deductions like retirement contributions):
| Taxable Income (Annual) | Rate | Tax Calculation |
|---|---|---|
| R1 – R237,100 | 18% | 18% of taxable income |
| R237,101 – R370,500 | 26% | R42,678 + 26% of amount above R237,100 |
| R370,501 – R512,800 | 31% | R77,362 + 31% of amount above R370,500 |
| R512,801 – R673,000 | 36% | R121,475 + 36% of amount above R512,800 |
| R673,001 – R857,900 | 39% | R179,147 + 39% of amount above R673,000 |
| R857,901 – R1,817,000 | 41% | R251,258 + 41% of amount above R857,900 |
| Above R1,817,000 | 45% | R644,489 + 45% of amount above R1,817,000 |
The bottom rate of 18% applies to the first R237,100 of taxable income. The top marginal rate of 45% only applies to income above R1,817,000 — this affects less than 2% of South African taxpayers. Most employed South Africans fall within the 18%–31% range.
Age-Based Tax Rebates
South Africa provides tax rebates based on age. A rebate is subtracted directly from the calculated tax (it is a tax credit, not a deduction from income):
| Rebate | Applicable To | Amount (2025/26) |
|---|---|---|
| Primary Rebate | All individuals | R17,235 |
| Secondary Rebate | 65 years and older | R9,444 |
| Tertiary Rebate | 75 years and older | R3,145 |
Every taxpayer receives the primary rebate of R17,235. If you are 65 or older, you also get the secondary rebate, bringing your total to R26,679. If you are 75 or older, you receive all three rebates totalling R29,824.
The primary rebate of R17,235 means that 18% of R95,750 = R17,235 — so if your taxable income is R95,750 or less, you pay zero tax. This is the tax threshold for persons under 65.
Tax Thresholds
The tax threshold is the income level below which you pay no income tax (because the rebates fully offset the tax calculated):
| Age Group | Tax Threshold (2025/26) |
|---|---|
| Under 65 | R95,750 |
| 65 – 74 | R148,217 |
| 75 and older | R165,689 |
If your annual taxable income falls below your age group's threshold, your employer should not deduct any PAYE tax from your salary.
UIF Contributions
The Unemployment Insurance Fund (UIF) is a mandatory contribution for most employed persons in South Africa:
- Employee contribution: 1% of remuneration
- Employer contribution: 1% of remuneration
- Earnings ceiling: R17,712 per month (R212,544 per year)
- Maximum employee contribution: R177.12 per month
- Tax treatment: UIF is not tax-deductible
For employees earning above R17,712/month, the UIF contribution is capped at R177.12. For those earning below, it is 1% of their actual salary. UIF provides benefits for unemployment, illness, maternity, and adoption.
Medical Tax Credits
If you belong to a registered medical scheme, you are entitled to medical scheme fees tax credits. These are subtracted directly from your calculated tax:
Medical Scheme Fees Tax Credit (2025/26)
| Member | Monthly Credit | Annual Credit |
|---|---|---|
| Main member | R364 | R4,368 |
| First dependant | R364 | R4,368 |
| Each additional dependant | R246 | R2,952 |
For example, an employee covering themselves, a spouse, and two children would receive a monthly credit of R364 + R364 + R246 + R246 = R1,220 per month (R14,640/year). This is subtracted from the monthly PAYE tax.
Additional Medical Expenses Tax Credit
If you are 65 or older, or if you or a dependant has a disability, you can claim an additional credit of 33.3% of qualifying medical expenses exceeding three times the medical scheme fees credit. For persons under 65 without disability, the credit is 25% of qualifying expenses exceeding 7.5% of taxable income. This is typically claimed via the annual tax return rather than through monthly PAYE.
Retirement Fund Contributions
Contributions to approved retirement funds (pension funds, provident funds, and retirement annuity funds) are tax-deductible within limits:
- Deduction limit: The lesser of 27.5% of the greater of remuneration or taxable income, OR R350,000 per year
- Applies to: Combined employer and employee contributions to pension, provident, and RA funds
- Excess: Contributions above the limit are carried forward to future years
For most employees, the employer contributes to a pension/provident fund on their behalf, and this contribution counts towards the 27.5% limit. If your employer contributes 7.5% and you contribute 7.5%, that is 15% combined — well within the limit for most salary levels.
Worked Examples
Let us calculate PAYE for three different annual salary levels. We assume: under 65, single member on medical aid (R364/month credit), and 15% total retirement contribution (7.5% employer + 7.5% employee).
Example 1: R250,000 Annual Salary
| Item | Amount |
|---|---|
| Gross Annual Salary | R250,000 |
| Retirement Deduction (7.5% employee) | (R18,750) |
| Taxable Income | R231,250 |
| Tax on R231,250 (18%) | R41,625 |
| Less: Primary Rebate | (R17,235) |
| Less: Medical Credit (R364 × 12) | (R4,368) |
| Annual PAYE Tax | R20,022 |
| Monthly PAYE | R1,669 |
| UIF (1% of R20,833/month) | R177 (capped) |
| Monthly Take-Home | ~R17,420 |
Effective tax rate: approximately 8.0% of gross salary.
Example 2: R500,000 Annual Salary
| Item | Amount |
|---|---|
| Gross Annual Salary | R500,000 |
| Retirement Deduction (7.5%) | (R37,500) |
| Taxable Income | R462,500 |
| Tax: R42,678 + 26% of (R370,500−R237,100) = R42,678 + R34,684 | R77,362 |
| Tax: + 31% of (R462,500−R370,500) | + R28,520 |
| Total Tax Before Credits | R105,882 |
| Less: Primary Rebate | (R17,235) |
| Less: Medical Credit | (R4,368) |
| Annual PAYE Tax | R84,279 |
| Monthly PAYE | R7,023 |
| Monthly Take-Home (after PAYE, UIF, retirement) | ~R32,454 |
Effective tax rate: approximately 16.9% of gross salary.
Example 3: R1,000,000 Annual Salary
| Item | Amount |
|---|---|
| Gross Annual Salary | R1,000,000 |
| Retirement Deduction (7.5%) | (R75,000) |
| Taxable Income | R925,000 |
| Tax: R251,258 + 41% of (R925,000−R857,900) | R251,258 + R27,511 |
| Total Tax Before Credits | R278,769 |
| Less: Primary Rebate | (R17,235) |
| Less: Medical Credit | (R4,368) |
| Annual PAYE Tax | R257,166 |
| Monthly PAYE | R21,431 |
| Monthly Take-Home (after PAYE, UIF, retirement) | ~R58,725 |
Effective tax rate: approximately 25.7% of gross salary. At R1M, the 39% and 41% bands start to take effect, pushing the effective rate higher.
For a personalised calculation, use our South Africa PAYE Calculator. It handles all brackets, rebates, UIF, and medical credits automatically.
SARS publishes the official tax tables and rates on their website at sars.gov.za. Always verify current rates against the official source.
Calculate Your South Africa Take-Home Pay
Enter your salary and see PAYE, UIF, retirement deductions, and net pay instantly — updated for the 2025/26 tax year.
SA PAYE Calculator →Frequently Asked Questions
SARS has 7 brackets: 18% on R1–R237,100, 26% on R237,101–R370,500, 31% on R370,501–R512,800, 36% on R512,801–R673,000, 39% on R673,001–R857,900, 41% on R857,901–R1,817,000, and 45% above R1,817,000.
The threshold is R95,750 for under 65, R148,217 for 65–74, and R165,689 for 75 and older. Below these amounts, you pay no income tax.
UIF is 1% of remuneration, capped at R177.12/month (based on the R17,712/month earnings ceiling). The employer contributes a matching 1%. UIF is not tax-deductible.
Medical credits for 2025/26 are R364/month for the main member, R364/month for the first dependant, and R246/month for each additional dependant. These credits reduce your calculated tax directly.
You can deduct up to 27.5% of the greater of remuneration or taxable income, capped at R350,000/year. This covers combined employer and employee contributions to pension, provident, and retirement annuity funds.