TAX RATES FOR INDIVIDUALS

What is it?

Income tax is the normal tax which is paid on your taxable income.

Examples of amounts an individual may receive, and from which the taxable income is determined, include –

• Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits

• Profits or losses from a business or trade

• Income or profits arising from an individual being a beneficiary of a trust

• Director’s fees

• Investment income, such as interest and foreign dividends

• Rental income or losses

• Income from royalties

• Annuities

• Pension income

• Certain capital gains

Who is it for?

You are liable to pay income tax if you earn more than:

For the 2017 year of assessment (1 March 2016 - 28 February 2017)

• R75 000 if you are younger than 65 years.

• If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R116 150.

• For taxpayers aged 75 years and older, this threshold is R129 850.

For the 2016 year of assessment (1 March 2015 - 29 February 2016)

• R73 650 if you are younger than 65 years.

• If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R114 800.

• For taxpayers aged 75 years and older, this threshold is R128 500.

2017 tax year (1 March 2016 - 28 February 2017)

​Taxable income (R)​ Rates of tax (R)

0 – 188 000 18% of taxable income

188 001 – 293 600 33 840 + 26% of taxable income above 188 000

293 601 – 406 400 61 296 + 31% of taxable income above 293 600

406 401 – 550 100 96 264 + 36% of taxable income above 406 400

550 101 – 701 300 147 996+ 39% of taxable income above 550 100

701 301 and above 206 964 + 41% of taxable income above 701 300

2016 tax year (1 March 2015 - 29 February 2016)

​Taxable income (R)​ Rates of tax (R)

​0 - 181 900​ 18% of each R1

​181 901 - 284 100 32 742 + 26% of the amount above 181 900

​284 101 - 393 200​ 59 314 + 31% of the amount above 284 100

​393 201 - 550 100 ​93 135 + 36% of the amount above 393 200

​550 101 - 701 300​ 149 619 + 39% of the amount above 550 100

​701 301 and above​ 208 587 + 41% of the amount above 701 300