Statutory Rates of Tax: 2026 Year of Assessment (1 March 2025 — 28 February 2026)
The following tax rates, tax rebates and tax thresholds proposed by the Minister of Finance in his Budget speech come into effect on 1 March 2025. (No changes from previous year).

The following tax rates (also known as tax brackets) apply to individuals based on their taxable income brackets for the 2026 tax year:
-For taxable income from R0 to R237,100: Tax is calculated at 18% of each R1 earned.
-For taxable income from R237,101 to R370,500: A base tax amount of R42,678 applies, plus 26% of taxable income exceeding R237,100.
-For taxable income from R370,501 to R512,800: A base tax amount of R77,362 applies, plus 31% of taxable income exceeding R370,500.
-For taxable income from R512,801 to R673,000: A base tax amount of R121,475 applies, plus 36% of taxable income exceeding R512,800.
-For taxable income from R673,001 to R857,900: A base tax amount of R179,147 applies, plus 39% of taxable income exceeding R673,000.
-For taxable income from R857,901 to R1,817,000: A base tax amount of R251,258 applies, plus 41% of taxable income exceeding R857,900.
-For taxable income above R1,817,001: A base tax amount of R644,489 applies, plus 45% of taxable income exceeding R1,817,000.
These rates apply progressively, meaning higher income levels are taxed at higher rates only on the portion exceeding the relevant threshold.

Tax rebates applicable to individuals
• Primary rebate R17 235
• Secondary rebate (for persons 65 years and older) R9 444
• Tertiary rebate (for person 75 years and older) R3 145

Tax thresholds applicable to individuals
• Persons under 65 years R 95 750
• Persons 65 to 74 years old R148 217
• Persons 75 years and older R165 689

Medical Scheme Contribution Tax Credit
The medical scheme tax credits that will be effective from 1 March 2025 are:
• R364 in respect of the taxpayer
• R364 for the first dependent
• R246 for each additional dependent
Note: No changes from the previous year.

Rate per Kilometer
The “Cost scale Table” for 2025/26 can be access via the following link:
https://www.sars.gov.za/legal-lsec-it-gn-2025-003-budget-2025-rates-per-kilometre-28-february-2025/
The prescribed rate per kilometer has been decreased from R4,84 per km to R4,76 per km. This rate is applicable at the option of the recipient where no other form of compensation is received for business travel purposes.

Subsistence Allowances and Advances
The daily amounts for overnight allowance in respect of travelling for business purposes (including at least one night away from home) in the Republic are:
• R570 per day for meals and incidental costs
• R176 for each day for incidental costs only
https://www.sars.gov.za/legal-lsec-it-gn-2025-002-budget-2025-notice-subsistence-allowance-rates-overnightallowance-28-february-2025/
The daily amount for daily business trip reimbursements (not away from home for a night) is:
• R176.
https://www.sars.gov.za/legal-lsec-it-gn-2025-001-budget-2025-notice-subsistence-allowance-rates-dayallowance-28-february-2025/