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South Africa tax guide 2026
South Africa taxes residents on their worldwide income through a seven-band scale running from 18% to 45%. There is no zero band — rebates knock the first slice of tax off your bill instead, so income up to ZAR 99,000 is effectively tax-free if you are under 65. The South African Revenue Service (SARS) collects monthly through employers and squares everything up in an annual assessment.
- Rate range
- 18% – 45%
- Key allowance
- First ZAR 99,000 effectively tax-free under 65, via the ZAR 17,820 primary rebate
- Tax year
- 2026/27 (1 March 2026 – 28 February 2027)
- Filing deadline
- For 2026/27: announced by the revenue service in mid-2027. (The 2026 season, covering the year ended 28 February 2026, ran to 23 October 2026 / 22 January 2027.)
Taxes covered
- Income tax45%
Single national scale — no provincial or municipal income taxes. Capital gains feed into the same scale at a 40% inclusion rate.
- Dividend tax20%
Flat dividends tax withheld by the paying company. It is a separate tax — the dividend itself is exempt from income tax.
- Capital gains tax18% max effective
No separate gains schedule: 40% of your net gain joins ordinary income, so the 45% top rate becomes 18% effective.
- Crypto tax18% – 45%
No dedicated crypto tax. The revenue service treats crypto as an intangible asset and applies normal income and capital gains rules.
- Social security1%
Employee side is a single 1% unemployment insurance contribution on capped earnings. There is no state pension deduction from pay.
- Inheritance tax20% / 25%
Estate duty charged on the deceased's estate, not on heirs. Donations tax mirrors it at the same rates for lifetime gifts.
- Withholding tax0% – 20%
Residents face little beyond salary withholding and the 20% on dividends. Non-residents face final withholding on dividends, interest, royalties and performance fees.
Special regimes
- Foreign employment income exemption
The first ZAR 1.25 million of salary earned abroad is exempt if you spend more than 183 days outside South Africa in 12 months, including 60 in a row.
- Tax-free investment account
Put in up to ZAR 46,000 a year and all interest, dividends and gains inside the account stay untaxed.
- Two-pot retirement system
Since 1 September 2024 retirement contributions split one third into an accessible savings pot and two thirds into a locked retirement pot.
Recent changes
- 2026-02-25Budget 2026 lifted brackets and rebates by roughly 3.4% from 1 March 2026: tax-free threshold to ZAR 99,000, annual capital gains exclusion to ZAR 50,000 (first rise since 2017), home-sale gain exclusion to ZAR 3 million, yearly gift exemption to ZAR 150,000 and the tax-free investment cap to ZAR 46,000.
- 2026-07-01The revenue service published its first draft guide to taxing crypto assets, confirming existing rules apply; public comments run to 31 August 2026.
- 2024-09-01Two-pot retirement system started: one savings-pot withdrawal allowed per year, taxed at your marginal rate.