Tax and SARS knowledge base
What are the 2026/27 individual tax thresholds?
What are the 2026/27 individual tax thresholds and when does income tax become payable?
Last reviewed:
Direct answer
For the year of assessment from 1 March 2026 to 28 February 2027, the tax threshold is R99,000 if you are younger than 65, R153,250 if you are 65 or older but younger than 75, and R171,300 if you are 75 or older. Below the applicable threshold, a person with ordinary taxable income generally has no normal income tax to pay.
A threshold is not a tax bracket. Tax is first calculated using the progressive table and then reduced by the rebates for which you qualify. The primary rebate is R17,820, the secondary rebate is R9,765 and the tertiary rebate is R3,249.
What this means in practice
The first bracket taxes taxable income up to R245,100 at 18%. Higher slices are taxed at 26%, 31%, 36%, 39%, 41% and 45%. Only the slice falling in a higher bracket uses that higher rate.
Taxable income is also not the same as salary or cash received. Exempt income and allowable deductions can change the figure. PAYE deducted by an employer is a credit against the final annual calculation.
Step-by-step
- Identify your age on the last day of the tax year.
- Add taxable income from employment, investments, rentals and other sources.
- Subtract deductions that the Income Tax Act permits.
- Apply the progressive tax table to taxable income.
- Subtract the age-related rebates and other applicable tax credits.
- Compare the result with PAYE and provisional tax already paid.
Documents and records to keep
- IRP5 and IT3 certificates.
- Retirement-fund and medical-scheme certificates.
- Proof of deductible expenses and provisional-tax payments.
- The final ITR12 and notice of assessment.
Important limits and exceptions
Being below the threshold does not automatically mean that no return is required. Filing duties depend on the annual SARS notice and your income types. Capital gains, lump sums and special rates also need separate treatment.
When to get tailored advice
Get help if you have several income sources, foreign income, a large capital gain, uncertain deductions or too little PAYE was withheld.