✔ 2018 Tax Rates, Thresholds and Allowance for Individuals, Companies, Trusts and Small Business Corporations (SBC) in South Africa
You are viewing the income tax rates, thresholds and allowances for the 2018 Tax Year in South Africa. If you are looking for an alternative tax year, please select one below.
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The following tax rates, thresholds and allowances are valid for the 2017 - 2018 Tax Year in South Africa which is known as the 2018 Tax Year. The Tax Year runs from 1 March 2017 - 28 February 2018
| Taxable Income (R) | Percentage rate of tax due within the threshold |
|---|---|
| R0.00 - R189,880.00 | 18% of income within the threshold |
| R189,880.00 - R296,540.00 | 26% of income within the threshold + R34,178.00 |
| R296,540.00 - R410,460.00 | 31% of income within the threshold + R61,910.00 |
| R410,460.00 - R555,600.00 | 36% of income within the threshold + R97,225.00 |
| R555,600.00 - R708,310.00 | 39% of income within the threshold + R149,475.00 |
| R708,310.00 - R1,500,000.00 | 41% of income within the threshold + R209,032.00 |
| R1,500,000.00 - R0.00 | 45% of income within the threshold + R533,625.00 |
| R75,750.00 | Tax Free Threshold Under 65 |
| R117,500.00 | Tax Free Threshold Over 65 |
| R131,150.00 | Tax Free Threshold Over 75 |
| R13,635.00 | Tax Rebate Under 65 |
| R7,479.00 | Tax Rebate Over 65 |
| R2,493.00 | Tax Rebate Over 75 |
Please note that the Medical Tax Credit is a non-refundable tax credit and cannot be carried over to the next tax year. The MTC is a fixed monthly amount that increases in line with the number of dependants you claim for. Note that the figures below show the annual Medical Tax Credit amounts
| R3,636.00 | Medical Tax Credit for the taxpayer who paid the medical scheme contributions |
| R3,636.00 | Medical Tax Credit for the first dependant |
| R2,448.00 | Medical Tax Credit for each additional dependant(s) |
| 7.5% | Medical Tax, percentage of deductible earning |
| 28% | Company with financial years ending 1 April 2017 - 31 March 2018 |
| 28% | Personal service provider companies |
| 33% | Foreign resident companies which earn income from a source in South Africa |
| 45% | Trusts (other than special trusts) assessment year ending 1 March 2017 - 31 Febuary 2018 |
| Taxable Income (R) | Percentage rate of tax due within the threshold |
|---|---|
| R0.00 - R75,750.00 | 0% of income within the threshold |
| R75,750.00 - R365,000.00 | 7% of income within the threshold + R0.00 |
| R365,000.00 - R550,000.00 | 21% of income within the threshold + R20,248.00 |
| R550,000.00 - R0.00 | 28% of income within the threshold + R59,098.00 |
Please note that the Medical Tax Credit is a non-refundable tax credit and cannot be carried over to the next tax year. The MTC is a fixed monthly amount that increases in line with the number of dependants you claim for. Note that the figures below show the annual Medical Tax Credit amounts
| R3,636.00 | Medical Tax Credit for the taxpayer who paid the medical scheme contributions |
| R3,636.00 | Medical Tax Credit for the first dependant |
| R2,448.00 | Medical Tax Credit for each additional dependant(s) |
| 7.5% | Medical Tax, percentage of deductible earning |
| R23,800.00 | Interest Exemptions threshoold for an individual younger than 65 |
| R34,500.00 | Interest Exemptions threshoold for an individual 65 and older |
| 15% | Final Withholding tax charged on interest from a South African source payable to non-residents |
| R20.00 | Dividends Tax |
| R20.00 | Foreign Dividends |
| R20.00 | Foreign Dividends received by individuals from foreign companies (shareholding of less than 10% in the foreign company) |
| 18% | Capital Gains Tax for Individuals and Special Trusts |
| 22.4% | Capital Gains Tax for Companies |
| 36% | Capital Gains Tax for Other Trusts |
| 27.5% | Pension Contributions: Maximum Income contribution |
| R350,000.00 | Pension Contributions: Maximum Annual contribution |
| Taxable Income (R) | Percentage rate of tax due within the threshold |
|---|---|
| R0.00 - R25,000.00 | 0% of income within the threshold |
| R25,000.00 - R660,000.00 | 18% of income within the threshold + R0.00 |
| R660,000.00 - R990,000.00 | 27% of income within the threshold + R114,300.00 |
| R990,000.00 - R0.00 | 36% of income within the threshold + R203,400.00 |
| Taxable Income (R) | Percentage rate of tax due within the threshold |
|---|---|
| R0.00 - R500,000.00 | 0% of income within the threshold |
| R500,000.00 - R700,000.00 | 18% of income within the threshold + R0.00 |
| R700,000.00 - R1,050,000.00 | 27% of income within the threshold + R36,000.00 |
| R1,050,000.00 - R0.00 | 36% of income within the threshold + R130,500.00 |
Income Tax Tables are used to calculated individual salaries, apply tax deductions and tax credits to produce a net take home pay (your income after deductions). Below is an example salary after tax deductions based on the 2017 - 2018 tax tables.
| Yearly | %1 | Salary/Tax Component |
|---|---|---|
| R311,300.00 | 100.00% | Employment Income |
| R311,300.00 | 100.00% | Gross Income |
| R85,607.50 | 27.50% | Retirement Funds |
| R311,300.00 | 100.00% | Taxable Income |
| R13,635.00 | 4.38% | Tax Rebate |
| R52,112.20 | 16.74% | Income Tax Due |
| R52,112.20 | 16.74% | Total Deductions |
| R259,187.80 | 83.26% | Net Pay |
| R3,113.00 | 1.00% | Employer Contribution to Risk Benefits |
| R4,669.50 | 1.50% | Employer Contribution to Retirement Funds |
| R319,082.50 | 102.50% | Salary Package [Cost of Employee] |
1 Percentage expressed in relation to Gross Income [R311,300.00].
If you have not encountered tax table information before or if you are unsure of how tax tables affect your income we recommend you read our guide: What are Tax Tables? Tax Tables explained.