South African Income Tax Calculator

South Africa uses a progressive (or marginal) tax system where your income is divided into brackets. The first portion of your income is taxed at 18%, the next portion at 26%, and so on up to 45% for income above R1,878,600. You only pay the higher rate on the income that falls within that bracket, not on your entire income.

Tax rebates are fixed amounts subtracted from your calculated tax to reduce your liability. All taxpayers receive the primary rebate (R17,820 for 2026/2027). If you are 65 or older, you also receive the secondary rebate (R9,765). If you are 75 or older, you additionally receive the tertiary rebate (R3,249). These rebates effectively create the tax-free thresholds.

The Medical Tax Credit is a fixed monthly amount per medical aid member: R376 per month for the first two members and R254 per month for each additional member (2026/2027 rates). This is a credit, not a deduction -- it reduces your tax directly, rand for rand.

The AMTC provides additional relief for out-of-pocket medical expenses. For taxpayers under 65, it equals 25% of qualifying medical expenses (including excess scheme contributions over 4 times MTC) minus 7.5% of taxable income. For those 65+ or with a disability, the formula is 33.3% of qualifying expenses (excess over 3 times MTC) with no income threshold.

You can deduct retirement fund contributions (pension, provident, or retirement annuity) up to 27.5% of the greater of your remuneration or taxable income, subject to an annual cap of R430,000. Contributions exceeding this limit are carried forward to future tax years.

If you receive a travel allowance from your employer, you can claim a deduction for business kilometres driven. You can use the simplified method (495 c/km for 2026/2027) or the deemed cost method based on SARS cost tables which factor in your vehicle value, fuel, and maintenance costs. You must keep a logbook to substantiate business travel.