Here is How Much Tax You Will Pay in 2026 Based on Your Income
Finance Minister Enoch Godongwana has presented South Africa’s 2026 Budget, bringing welcome tax relief for individuals after several years of limited adjustments.
One of the key announcements is that personal income tax brackets and medical aid tax credits will be fully adjusted for inflation in the 2026 tax year. This follows two consecutive years during which these thresholds remained frozen, effectively increasing the tax burden on many workers through bracket creep.
Bracket creep occurs when inflation-linked salary increases push taxpayers into higher tax brackets, even though their real purchasing power has not improved. By adjusting the tax brackets in line with inflation, the government aims to ensure that employees are not unfairly taxed simply because their incomes rise to keep pace with the cost of living.
In addition to these adjustments, the R20 billion in additional tax measures that had been proposed in the Medium-Term Budget Policy Statement and the 2025 Budget has now been withdrawn. The decision reflects improved revenue performance and a stronger fiscal outlook.
According to the National Treasury, several other tax thresholds and limits will also be adjusted for inflation to support small businesses and encourage savings.
Godongwana noted that South Africa’s tax system has shown resilience despite slow economic growth. For the 2025/26 financial year, gross tax revenue has been revised upward by R21.3 billion compared with projections in the 2025 Budget.
Higher-than-expected collections from VAT, corporate income tax, and dividends tax have improved the country’s revenue outlook. Because of this stronger fiscal position, government was able to withdraw the proposed tax increases without threatening fiscal sustainability.
“The improving fiscal position allows us enough room to withdraw the proposed tax increases, without putting fiscal sustainability or economic activity at risk,” the minister said.
For taxpayers, the inflationary adjustment means that employees receiving normal salary increases are less likely to be pushed into higher tax brackets. This ensures that workers retain more of their income instead of losing additional money through hidden tax increases.
South Africa Personal Income Tax Brackets (2026/27)
| Taxable Income (R) |
Rate of Tax |
| 1 – 245,100 |
18% of taxable income |
| 245,101 – 383,100 |
R44,118 + 26% of taxable income above R245,100 |
| 383,101 – 530,200 |
R79,998 + 31% of taxable income above R383,100 |
| 530,201 – 695,800 |
R125,599 + 36% of taxable income above R530,200 |
| 695,801 – 887,000 |
R185,215 + 39% of taxable income above R695,800 |
| 887,001 – 1,878,600 |
R259,783 + 41% of taxable income above R887,000 |
| 1,878,601 and above |
R666,339 + 45% of taxable income above R1,878,600 |
Tax Rebates (2026/27)
-
Primary rebate: R17,820
-
Secondary rebate (65+): R9,765
-
Tertiary rebate (75+): R3,249
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