South Africa Tax Rates 2026/2027 - PAYE Income Tax Brackets, VAT, SDL & UIF
South African tax rates for the 2026/2027 tax year (1 March 2026 – 28 February 2027).
PAYE Income Tax Brackets
| Taxable Income (R) | Rate |
|---|---|
| R0 – R237,100 | 18% of each R1 |
| R237,101 – R370,500 | R42,678 + 26% of the amount above R237,100 |
| R370,501 – R512,800 | R77,362 + 31% of the amount above R370,500 |
| R512,801 – R673,000 | R121,475 + 36% of the amount above R512,800 |
| R673,001 – R857,900 | R179,147 + 39% of the amount above R673,000 |
| R857,901 – R1,817,000 | R251,258 + 41% of the amount above R857,900 |
| R1,817,001+ | R644,489 + 45% of the amount above R1,817,000 |
Other Tax Rates
Corporate Income Tax
27%
BTW / VAT
15%
Skills Development Levy (SDL)
1% of payroll
UIF / UIF
1% employee + 1% employer
Dividends Tax
20%
Capital Gains Tax (Individual)
18% inclusion × marginal rate
National Minimum Wage
R27.58 / hour
Tax Incentives
Employment Tax Incentive (ETI): A tax incentive for employers hiring young workers aged 18-29 earning below R6,500 per month. Employers can claim up to R1,000 per month per qualifying employee during the first 24 months. Not available for SIC codes in the public administration sector.
Related Resources
This page provides a clear, up-to-date summary of the main South African tax rates for the 2026/2027 tax year (1 March 2026 to 28 February 2027), as announced by the National Treasury and administered by SARS. It is designed as a quick reference for payroll administrators, accountants, business owners, HR practitioners and individual taxpayers who need the headline numbers in one place.
The PAYE income tax table shows the seven progressive brackets, starting at 18% on taxable income up to R237,100 and rising to 45% on income above R1,817,000. Each bracket lists the cumulative base amount and the marginal rate so you can calculate annual tax with confidence. Other key rates include Corporate Income Tax at 27%, Value Added Tax (VAT) at 15%, Skills Development Levy (SDL) at 1% of payroll, Unemployment Insurance Fund (UIF) at 1% employee plus 1% employer, Dividends Withholding Tax at 20%, and the effective Capital Gains Tax (CGT) for individuals based on a 40% inclusion rate applied to the marginal rate.
The page also covers the National Minimum Wage of R27.58 per hour and key tax incentives that reduce the cost of employment, most notably the Employment Tax Incentive (ETI) that allows qualifying employers to claim up to R1,000 per month per qualifying young employee aged 18 to 29 earning below R6,500 per month during the first 24 months. ETI is not available for employers in the public administration sector.
Each rate is accompanied by a short explanation, the relevant SARS form or section of the Income Tax Act, and links to related topics such as primary, secondary and tertiary rebates, medical tax credits, retirement fund deductions, and provisional tax thresholds. Always confirm the latest figures on the SARS website before making formal submissions, but use this page for fast, accurate planning and day-to-day reference.