PAYE Tax South Africa 2026/27: Brackets & Take-Home Pay

Short answer: for the 2026/27 tax year (1 March 2026 to 28 February 2027), you only pay PAYE in South Africa if you earn more than R99 000 a year (about R8 250 a month) and you are under 65. Above that, SARS taxes your annual income at rates from 18% to 45%, then subtracts a primary rebate of R17 820. On a R15 000 monthly salary that works out to roughly R1 215 PAYE a month, plus R150 UIF.

This guide explains the new SARS tax brackets in plain language, shows estimated PAYE and take-home pay on common salaries, and lists the deductions that lower your tax. It is useful when you compare a job offer, check a payslip or plan around a December bonus.

SARS tax brackets for 2026/27

SARS raised the brackets for the 2027 tax year. The previous brackets had stayed the same since the 2024 tax year. Here are the official rates for taxable income between 1 March 2026 and 28 February 2027:

R0 – R245 100: 18% of taxable income
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

Everyone gets a rebate. It is subtracted from the tax calculated with the brackets above. This is why low earners pay no tax at all.

Primary rebate (all taxpayers): R17 820 (was R17 235)
Secondary rebate (65 and older): R9 765 extra
Tertiary rebate (75 and older): R3 249 extra

Because of these rebates, you pay no income tax below these annual thresholds:

Under 65: R99 000 (was R95 750)
65 to 74: R153 250
75 and older: R171 300

How PAYE is worked out on your salary

PAYE (Pay-As-You-Earn) is the income tax your employer takes off your pay every month and sends to SARS. Payroll systems use SARS deduction tables, but the logic is simple:

Annualise your pay. Monthly taxable pay × 12.
Subtract allowed deductions. The main one is contributions to a pension, provident or retirement annuity fund.
Apply the bracket. Use the table above to calculate the tax on the annual amount.
Subtract your rebate(s). R17 820 for everyone, plus the age rebates if they apply.
Subtract medical aid credits if you belong to a medical scheme.
Divide by 12. The result is your monthly PAYE.

PAYE and take-home pay on common salaries (2026/27)

These estimates are for an employee under 65 with no medical aid and no retirement fund deductions. UIF is 1% of pay, capped at R177.12 a month. Your actual payslip may differ by a few rand because SARS tables round amounts, and it will differ more if you have other deductions or benefits.

R8 000 a month: PAYE R0 · UIF R80 · take-home about R7 920
R10 000 a month: PAYE about R315 · UIF R100 · take-home about R9 585
R15 000 a month: PAYE about R1 215 · UIF R150 · take-home about R13 635
R20 000 a month: PAYE about R2 115 · UIF R177.12 · take-home about R17 708
R25 000 a month: PAYE about R3 381 · UIF R177.12 · take-home about R21 442
R30 000 a month: PAYE about R4 681 · UIF R177.12 · take-home about R25 142
R40 000 a month: PAYE about R7 685 · UIF R177.12 · take-home about R32 138
R50 000 a month: PAYE about R11 076 · UIF R177.12 · take-home about R38 747

Worked example: R15 000 a month

R15 000 × 12 = R180 000 a year.
R180 000 falls in the first bracket: 18% × R180 000 = R32 400.
Subtract the primary rebate: R32 400 − R17 820 = R14 580 tax for the year.
R14 580 ÷ 12 = R1 215 PAYE a month.

Deductions and credits that lower your PAYE

Retirement fund contributions

Contributions to a pension fund, provident fund or retirement annuity are deducted before tax. The limit is 27.5% of the greater of your remuneration or taxable income, capped at R430 000 a year for 2026/27. For example, if you earn R30 000 a month and put 7.5% (R2 250) into your employer's pension fund, your estimated PAYE falls from about R4 681 to about R4 096. Some of the money you save goes into your retirement savings instead of tax.

Medical scheme fees tax credit

If you pay medical aid contributions, SARS gives you a monthly tax credit. It is taken straight off your PAYE:

You (main member): R376 a month
First dependant: R376 a month
Each additional dependant: R254 a month

A main member with one dependant gets R752 a month off their PAYE.

UIF is separate from PAYE

The Unemployment Insurance Fund (UIF) contribution is not income tax. You pay 1% of your pay and your employer adds another 1%. Contributions are capped at earnings of R17 712 a month, so the most an employee pays is R177.12 a month. These contributions are what let you claim benefits if you lose your job. See our step-by-step guide on how to claim UIF in South Africa.

What about my bonus or 13th cheque?

An annual bonus or 13th cheque is taxable income. Because it is paid as a once-off amount, payroll calculates the tax on it separately. In the bonus month, PAYE can look much higher than usual, especially if the bonus pushes your yearly income into a higher bracket. This is normal. If too much tax was deducted over the year, the difference is sorted out when you file your annual tax return.

How to check your payslip is correct

Find your gross and taxable pay. Taxable pay can include taxable allowances and fringe benefits such as a company car.
Check deductions before tax. Pension, provident or retirement annuity contributions should reduce your taxable pay.
Compare PAYE with the estimates above. Use the salary that matches your taxable pay. A large difference usually means allowances, benefits or a missing medical aid credit.
Check your UIF line. It should be 1% of pay, and never more than R177.12.
Keep your IRP5 / IT3(a). Your employer must give you this certificate after the tax year. You need it to file your return on SARS eFiling.

If something looks wrong, ask your payroll or HR department first. They can see your tax directive, benefits and the tables they used.

Using this when you compare job offers

Offers are usually quoted as a gross monthly salary or a "cost to company" (CTC) package. CTC often includes the employer's pension and medical aid contributions, so your take-home pay can be much lower than the headline number. Ask for a monthly breakdown, then use the brackets above to estimate your net pay before you accept. For pay benchmarks, see our South African minimum wage guide, the public service salary levels, nurse salaries and teacher salaries.

Frequently asked questions

How much can I earn before paying tax in South Africa in 2026/27?

If you are under 65, you pay no income tax on annual taxable income up to R99 000, which is about R8 250 a month. The threshold is R153 250 if you are 65 to 74, and R171 300 if you are 75 or older.

How much tax do I pay on a R20 000 salary in South Africa?

For 2026/27, an employee under 65 with no medical aid or retirement deductions pays about R2 115 PAYE a month on R20 000. UIF is another R177.12, which leaves take-home pay of about R17 708.

When do the new 2026/27 tax brackets apply?

The new brackets apply from 1 March 2026 to 28 February 2027. Employers had to use the new SARS deduction tables from 1 March 2026.

Is UIF part of PAYE?

No. UIF is a separate 1% contribution, capped at R177.12 a month for employees. It funds unemployment, maternity and illness benefits. PAYE is income tax.

Why is my PAYE higher in my bonus month?

A bonus is taxed as a once-off payment on top of your normal salary. That can push part of your yearly income into a higher bracket, so more tax is withheld in that month. Any overpayment over the year is adjusted when you file your tax return.

Sources

Looking for your next role? Browse the latest jobs in South Africa, including finance jobs and openings in Johannesburg and Cape Town. Then use this guide to work out what you will take home.

By the Jobsiz Editorial Team · Updated 28 October 2026. Figures are estimates based on SARS 2026/27 rates and do not replace professional tax advice.

PAYE Tax in South Africa 2026/27: How Much You Take Home