What is Income Tax?
Tax & Compliance
Explained Simply
South Africa uses a progressive tax system for individuals, with rates from 18% to 45% across seven brackets. Companies pay a flat rate of 27%. Trusts pay 45% on undistributed income. The tax year for individuals runs from 1 March to 28/29 February. Companies can choose any year-end. Tax returns are filed via SARS eFiling, with deadlines varying by taxpayer type. Rebates reduce tax payable based on age: primary (R17,820), secondary for 65+ (R9,765), and tertiary for 75+ (R3,249).
Free Tool
Income Tax Calculator
Calculate your annual income tax obligations based on current SARS tax brackets and rebates.
Related Terms
- Taxable IncomeTaxable income is the portion of total income on which income tax is calculated, after subtracting all allowable deductions and exemptions as defined by SARS.
- PAYE (Pay As You Earn)PAYE is the system through which employers deduct income tax from employees' salaries and pay it directly to SARS on their behalf each month.
- Provisional TaxProvisional tax is a method of paying income tax in advance, in two or three instalments during the tax year, rather than as a lump sum at year-end.