In South Africa, income tax is levied on individuals, companies, and other entities based on their income levels. The income tax system is progressive for individuals, meaning that higher income earners pay a higher rate of tax.
As of the latest information in 2023, the personal income tax rates for individuals typically ranged from 18% to 45% based on income brackets. Here’s a general outline of the personal income tax brackets for individuals for the tax year:
- 18% on taxable income up to a certain threshold (e.g., ZAR 226,000).
- 26% on income above that threshold up to another limit (e.g., ZAR 353,100).
- 31% on income above that up to a higher limit (e.g., ZAR 488,700).
- 36% on income above that limit up to another higher limit (e.g., ZAR 641,400).
- 39% on income above that limit up to a certain amount (e.g., ZAR 1,577,300).
- 45% on income over that amount.
Keep in mind that these numbers can change annually with tax regulations, and there may also be additional considerations for taxpayers, such as rebates and deductions. For the most accurate and detailed information, it is advisable to refer to the South African Revenue Service (SARS) or consult a tax professional.
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