The 2025/2026 tax year brings updated tax brackets and rebates from SARS. Whether you're employed, self-employed, or planning your finances, understanding these changes is crucial for accurate tax planning.
What's New in 2025/2026?
SARS has adjusted the tax brackets to account for inflation, providing relief to taxpayers. The tax-free threshold has increased, and all brackets have been shifted upward by approximately 5-6%.
Key Changes:
- Tax-free threshold increased to R101,433 (up from R95,750)
- Primary rebate increased to R18,258 (up from R17,235)
- All tax brackets adjusted for inflation
- Maximum marginal rate remains at 45%
2025/2026 Tax Brackets
Here are the official SARS tax brackets for the 2025/2026 tax year:
| Taxable Income | Tax Rate | Tax Amount |
|---|---|---|
| R0 – R251,100 | 18% | 18% of taxable income |
| R251,101 – R392,000 | 26% | R45,198 + 26% above R251,100 |
| R392,001 – R542,800 | 31% | R81,842 + 31% above R392,000 |
| R542,801 – R712,800 | 36% | R128,590 + 36% above R542,800 |
| R712,801 – R908,300 | 39% | R189,790 + 39% above R712,800 |
| R908,301 – R1,927,900 | 41% | R266,035 + 41% above R908,300 |
| R1,927,901+ | 45% | R684,071 + 45% above R1,927,900 |
Tax Rebates 2025/2026
Tax rebates are deducted from your calculated tax amount. The rebates for 2025/2026 are:
- Primary rebate (all taxpayers):R18,258
- Secondary rebate (age 65-74):R10,008
- Tertiary rebate (age 75+):R3,333
How to Calculate Your Tax
Calculating your income tax involves three simple steps:
- Find your tax bracket
Locate your annual taxable income in the tax table above to determine your bracket.
- Calculate your gross tax
Use the formula from your bracket. For example, if you earn R500,000: R128,590 + 36% of (R500,000 - R542,800)
- Subtract rebates
Deduct the primary rebate (R18,258) and any age-based rebates you qualify for.
Example Calculation
Annual Income: R500,000
Step 1: Falls in R392,001 – R542,800 bracket
Step 2: R81,842 + 31% × (R500,000 - R392,000) = R115,322
Step 3: R115,322 - R18,258 = R97,064 annual tax
Monthly tax: R97,064 ÷ 12 = R8,089
Tax-Free Thresholds
If your income is below these amounts, you don't pay any tax:
Under 65
R101,433
Age 65-74
R157,067
Age 75+
R175,916
Key Takeaways
- Tax brackets are progressive - you only pay higher rates on income above each threshold
- Everyone gets the R18,258 primary rebate automatically
- Seniors get additional rebates (R10,008 for 65+ and R3,333 for 75+)
- Use a calculator to ensure accuracy - manual calculations can be error-prone
Calculate Your Exact Tax
Use our free salary calculator to instantly calculate your income tax, UIF, and take-home pay for 2025/2026.
Try Salary Calculator →Frequently Asked Questions
When does the 2025/2026 tax year start?
The 2025/2026 tax year runs from 1 March 2025 to 28 February 2026.
Do I need to file a tax return?
If your employer deducts PAYE and you have no other income, you may not need to file. However, if you have rental income, freelance income, or want to claim deductions, you should file.
How often do tax brackets change?
SARS typically adjusts tax brackets annually during the Budget Speech (usually in February) to account for inflation.