Complete South African Tax Guide
Everything you need to know about South African tax brackets, rebates, deductions, and compliance for the 2024/2025 tax year.
2024/2025 Tax Brackets
South African income tax follows a progressive system where higher income levels are taxed at higher rates. The following brackets apply to the 2024/2025 tax year (1 March 2024 to 28 February 2025):
| Taxable Income | Rate | Cumulative Tax |
|---|---|---|
| R0 - R237,100 | 18% | R0 - R42,678 |
| R237,101 - R370,500 | 26% | R42,678 - R77,362 |
| R370,501 - R512,800 | 31% | R77,362 - R121,475 |
| R512,801 - R673,000 | 36% | R121,475 - R179,147 |
| R673,001 - R857,900 | 39% | R179,147 - R251,258 |
| R857,901 - R1,817,000 | 41% | R251,258 - R644,489 |
| R1,817,001 - and above | 45% | R644,489 - R644,489+ |
How Tax Brackets Work
Tax brackets are progressive, meaning you only pay the higher rate on income above each threshold. For example, if you earn R400,000 annually:
- • First R237,100 taxed at 18% = R42,678
- • Next R162,900 (R400,000 - R237,100) taxed at 26% = R42,354
- • Total tax before rebates = R85,032
Tax Rebates 2024/2025
Tax rebates are amounts that reduce your tax liability directly. They're applied after calculating your tax based on the brackets above.
Primary Rebate
R17,235
Available to all taxpayers under 65 years old
• Reduces tax liability by R17,235
• Automatically applied
Secondary Rebate
R9,444
Additional rebate for taxpayers aged 65-74
• Total rebate: R26,679
• Effective tax-free threshold: R148,217
Tertiary Rebate
R3,145
Additional rebate for taxpayers 75 and older
• Total rebate: R29,824
• Effective tax-free threshold: R165,689
Tax-Free Thresholds
Under 65:
R95,750 annually
R7,979 monthly
65-74 years:
R148,217 annually
R12,351 monthly
75+ years:
R165,689 annually
R13,807 monthly
Tax Deductions & Credits
Various deductions and credits can reduce your taxable income or tax liability. Here are the most important ones for 2024/2025:
Retirement Fund Contributions
Contributions to pension, provident, and retirement annuity funds
Medical Aid Contributions
Monthly medical aid premiums and qualifying medical expenses
Travel Allowance
Business-related travel expenses
Home Office Expenses
Business use of home expenses
Medical Aid Tax Credits
Medical aid contributions qualify for tax credits (not deductions), which directly reduce your tax liability:
- • Main member: R347 per month tax credit
- • First dependant: R347 per month tax credit
- • Additional dependants: R234 per month each
- • Example: Family of 4 = R1,162 monthly tax credit = R13,944 annual tax reduction
Practical Tax Calculation Examples
Example 1: Entry-Level Professional
Annual Salary: R240,000
Monthly Salary: R20,000
Tax Calculation:
- • Tax on first R237,100: R42,678
- • Tax on remaining R2,900: R754
- • Total tax: R43,432
- • Less primary rebate: R17,235
Annual Tax: R26,197
Monthly Tax: R2,183
Take-home: R17,817
Effective Rate: 10.9%
Example 2: Senior Professional
Annual Salary: R600,000
Monthly Salary: R50,000
Tax Calculation:
- • Tax through brackets: R160,603
- • Less primary rebate: R17,235
- • Less medical aid credit: R8,328
Annual Tax: R135,040
Monthly Tax: R11,253
Take-home: R38,747
Effective Rate: 22.5%
Tax Optimization Example
How a R500,000 earner can reduce their tax liability through legitimate deductions:
Without Optimization
- • Taxable income: R500,000
- • Tax before rebates: R118,588
- • Tax after rebates: R101,353
- • Effective rate: 20.27%
With Optimization
- • Pension contribution: R60,000
- • Medical aid credits: R8,328
- • Taxable income: R440,000
- • Final tax: R74,625
- • Effective rate: 14.9%
- • Tax saved: R26,728
Tax Compliance & Important Dates
Key Deadlines
- • Tax Year: 1 March 2024 - 28 February 2025
- • Individual Returns: 21 November 2024 (provisional)
- • Tax Practitioner Returns: 31 January 2025 (provisional)
- • Provisional Tax: 31 August 2024 & 28 February 2025
Required Documents
- • IRP5 certificate from employer
- • IT3(a) certificates for interest
- • Medical aid certificates
- • Retirement fund certificates
- • Receipts for deductions
Penalties & Interest
Late Submission:
R250 per month
Late Payment:
10% penalty + interest
Understatement:
10% to 200% penalty
Calculate Your Tax Now
Use our comprehensive salary calculator to see exactly how much tax you'll pay and what your take-home salary will be.
Additional Resources
SARS Resources
- • SARS Official Website
- • SARS eFiling
- • SARS Contact Centre: 0800 00 SARS (7277)