2026/27 tax tables and your payslip explained
Everything in your payslip's tax line comes from a handful of published numbers. Here they are for the 2026/27 tax year (1 March 2026 to 28 February 2027), with what each one means for you.
Income tax brackets
Budget 2026 adjusted the brackets and rebates for inflation. The rates themselves did not change.
| Taxable income | Tax |
|---|---|
| R1 – R245 100 | 18% of the amount |
| R245 101 – R383 100 | R44 118 + 26% of the amount above R245 100 |
| R383 101 – R530 200 | R79 998 + 31% of the amount above R383 100 |
| R530 201 – R695 800 | R125 599 + 36% of the amount above R530 200 |
| R695 801 – R887 000 | R185 215 + 39% of the amount above R695 800 |
| R887 001 – R1 878 600 | R259 783 + 41% of the amount above R887 000 |
| R1 878 601 and above | R666 339 + 45% of the amount above R1 878 600 |
Rebates and tax thresholds
Rebates are subtracted from the tax worked out from the table. They are the reason low earners pay no tax at all.
| Age | Rebates | No tax below |
|---|---|---|
| Under 65 | R17 820 (primary) | R99 000 |
| 65 to 74 | + R9 765 (secondary) | R153 250 |
| 75 and older | + R3 249 (tertiary) | R171 300 |
Medical scheme fees tax credits
R376 a month for the main member, R376 for the first dependant and R254 for each additional dependant. See the medical tax credit calculator for the additional credit on high medical costs.
Other numbers that affect your pay
- Retirement contributions: deductible up to 27.5% of the greater of remuneration or taxable income, capped at R430 000 a year (up from R350 000).
- UIF: 1% from you and 1% from your employer, on pay up to R17 712 a month.
- Interest exemption: the first R23 800 of local interest is tax free (R34 500 from age 65).
- Tax-free savings: up to R46 000 a year can go into tax-free investments from 2026/27.
Reading your payslip, line by line
Here is a worked example for someone aged 35 earning R25 000 a month, contributing R1 875 to a pension fund and paying R2 000 for medical aid for themselves only.
| Payslip line | Amount | What it means |
|---|---|---|
| Basic salary | R25 000.00 | Your gross pay before deductions. |
| Pension fund | −R1 875.00 | Your contribution. It reduces taxable income. |
| Medical aid | −R2 000.00 | Your contribution. You get a R376 monthly tax credit for it. |
| PAYE | −R2 517.50 | Income tax: annual tax on (R25 000 − R1 875) × 12, less the rebate and medical credit, divided by 12. |
| UIF | −R177.12 | 1% of your salary. Your employer pays the same again. |
| Net pay | R18 430.38 | What reaches your bank account. |
Your payslip may also show employer contributions (UIF, Skills Development Levy, pension or medical aid paid by your employer) and fringe benefits. Employer medical aid and pension contributions are usually added to your taxable pay as fringe benefits and then treated as if you paid them.
Try your own numbers in the salary after tax calculator.