Complete Guide to South African Tax Brackets 2024/2025
Everything you need to know about the new SARS tax brackets, rebates, and how they affect your take-home pay.
About the Author
Mpho Dube is a qualified Financial Analyst with over 8 years of experience in South African tax law and business finance. He specializes in SARS compliance, payroll management, and helping businesses optimize their tax strategies.
Understanding South African tax brackets is crucial for financial planning and maximizing your take-home pay. The 2024/2025 tax year introduces significant changes to tax rates, rebates, and thresholds that every taxpayer needs to understand.
2024/2025 Tax Brackets Breakdown
South Africa uses a progressive tax system where higher income earners pay higher tax rates. Here are the complete tax brackets for the 2024/2025 tax year:
Individual Income Tax Brackets 2024/2025
| Taxable Income Range | Tax Rate | Tax on Income |
|---|---|---|
| R0 - R237,100 | 18% | 18% of taxable income |
| R237,101 - R370,500 | 26% | R42,678 + 26% of amount above R237,100 |
| R370,501 - R512,800 | 31% | R77,362 + 31% of amount above R370,500 |
| R512,801 - R673,000 | 36% | R121,475 + 36% of amount above R512,800 |
| R673,001 - R857,900 | 39% | R179,147 + 39% of amount above R673,000 |
| R857,901 and above | 45% | R251,258 + 45% of amount above R857,900 |
Tax Rebates and Thresholds
Tax rebates reduce the amount of tax you pay and are applied after calculating your gross tax liability. Here are the rebates for 2024/2025:
Primary Rebate
R17,235
Available to all taxpayers under 65
Secondary Rebate
R9,444
Additional rebate for taxpayers 65-74 years
Tertiary Rebate
R3,145
Additional rebate for taxpayers 75+ years
Tax Thresholds by Age Group
Income Tax Thresholds 2024/2025
- • Under 65: R95,750 (no tax payable below this amount)
- • 65-74 years: R148,217 (no tax payable below this amount)
- • 75+ years: R165,689 (no tax payable below this amount)
These thresholds represent the income level below which no income tax is payable after applying rebates.
Practical Examples
Example 1: Young Professional (R300,000 annual salary)
• Gross Annual Salary: R300,000
• Tax Calculation:
- First R237,100 at 18% = R42,678
- Remaining R62,900 at 26% = R16,354
- Gross Tax: R59,032
• Less Primary Rebate: R17,235
• Net Annual Tax: R41,797
• Monthly Tax: R3,483
• Take-Home Monthly: R21,517
Medical Aid Credits
Medical aid contributions qualify for tax credits, reducing your taxable income:
Monthly Medical Aid Credits 2024/2025
- • Main member: R347 per month
- • First dependant: R347 per month
- • Additional dependants: R234 per month each
Capital Gains Tax
Capital gains are included in taxable income at the following inclusion rates:
Individuals
40%
of capital gain included in taxable income
Companies
80%
of capital gain included in taxable income
Tax Planning Tips
Strategies to Reduce Your Tax Burden
- • Retirement Annuities: Contribute up to 27.5% of income (max R350,000 annually) for tax deductions
- • Medical Aid: Join a medical scheme to benefit from tax credits
- • Tax-Free Investments: Use the R36,000 annual allowance for tax-free savings
- • Donations: Donate up to 10% of taxable income for tax deductions
- • Section 12J Investments: Invest in qualifying venture capital companies for 100% tax deduction
Calculate Your Exact Tax
Use our comprehensive tax calculator to see exactly how these brackets affect your specific situation, including PAYE, UIF, and other deductions.
Calculate Your Tax Now