How income tax works in South Africa
South Africa taxes residents on worldwide income. Ordinary residence through home and intent, or the 91-day physical-presence formula, decides who is in.
Brackets for March 2025 to February 2026 run 18% to R237,100, 26% to R370,500, 31% to R512,800, 36% to R673,000, 39% to R857,900, 41% to R1,817,000 and 45% above. No bracket moved for inflation.
The primary rebate of R17,235 wipes out tax to R95,750, medical scheme credits repay R364 monthly per main member, and local interest to R23,800 is exempt. Employers withhold PAYE monthly with a February reconciliation.
Income tax brackets in South Africa
| Bracket | Rate | Notes |
|---|---|---|
| Up to ZAR 237,100 | 18% | Before rebates and credits |
| ZAR 237,101 to ZAR 370,500 | 26% | Before rebates and credits |
| ZAR 370,501 to ZAR 512,800 | 31% | Before rebates and credits |
| ZAR 512,801 to ZAR 673,000 | 36% | Before rebates and credits |
| ZAR 673,001 to ZAR 857,900 | 39% | Before rebates and credits |
| ZAR 857,901 to ZAR 1,817,000 | 41% | Before rebates and credits |
| ZAR 1,817,001 and above | 45% | Top marginal rate |
Tax rates at a glance
- Entry rate
- 18%To R237,100
- Middle rate
- 31% / 36%
- Upper rate
- 39% / 41%
- Top rate
- 45%
- Medical credit
- R364/mo
- Foreign exemption
- R1.25M
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsContractorsHigh earnersCross-border workers
Watch out for
- Frozen brackets mean bracket creep. A cost-of-living raise with no promotion still pushes more pay into higher bands.
- The foreign-employment exemption caps at R1.25 million, not full pay. Days abroad must exceed 183 with 60 continuous, and only workdays apportion.
- Medical credits are rebates, not deductions. They cut computed tax directly but never below zero, and never touch the 7.5% additional-expenses lane.
- Provisional taxpayers pay twice yearly in August and February. Salary-only workers escape, but freelancers and landlords must not miss the dates.
Frequently asked questions
Do expats pay income tax in South Africa?
Yes, if resident or earning local income. Residents pay on worldwide income with foreign credits, while qualifying workers abroad exempt the first R1.25 million.
What is the top income tax rate in South Africa?
45% above R1,817,000 of taxable income for the 2026 tax year, with no inflation adjustment.
How much is tax-free in South Africa?
R95,750 for under-65s through the R17,235 primary rebate, plus R23,800 of local interest and medical credits.
Is foreign salary exempt in South Africa?
Up to R1.25 million a year with 183 days abroad including 60 continuous. The excess is taxed at marginal rates with foreign-tax credit.