🇿🇦 South Africa Personal Income Tax Brackets – 2027 Tax Year

The South African government has released the updated personal income tax brackets for the 2027 tax year, following the national budget announcement on 25 February 2026.

These tax rates apply to income earned between 1 March 2026 and 28 February 2027, which corresponds to the 2027 South African tax year used by the South African Revenue Service (SARS).

The updated brackets determine how employee income tax (PAYE – Pay As You Earn) is calculated through payroll.

2027 Personal Income Tax Rates

For the 2027 tax year, the following marginal tax brackets apply:

South Africa applies a progressive tax system, meaning different portions of income are taxed at increasing rates.

What This Means for Clients

These tax brackets are used to calculate employee income tax withholding (PAYE) in South Africa.

For employees hired through RemoFirst, the local team applies these tax rates through payroll, based on the employee’s taxable income. The updated brackets apply to income earned from 1 March 2026 onward, in line with the start of the 2027 South African tax year.

Clients do not need to take any action, as payroll calculations are handled by the local team.

What This Means for Employees

The updated tax brackets determine how much income tax is deducted from employee salaries in South Africa.

Because South Africa uses a progressive tax system, only the portion of income that falls within a higher bracket is taxed at that higher rate. As a result, employees may see changes in the amount of tax withheld from their salary, depending on their income level.

South Africa Tax Year

South Africa’s tax year for individuals does not follow the calendar year. Instead, it runs from:

• 1 March of the current year

• 28 or 29 February of the following year

Therefore, the 2027 tax year covers income earned between 1 March 2026 and 28 February 2027.