JHB 010 007 3026 CPT 021 421 4444 DUR 031 007 0881

Tax Brackets – Income Tax Tables 2016

March 16, 2016

With many people holding their breath for February’s Budget, it came as a relief when the South African Finance Minister revealed almost no increases to personal taxation rates and even a decrease for lower and middle-income brackets.

Corporate tax also remained the same at a rate of 28%.

Calculate Income Tax

To calculate the tax rates that would apply to you, simply reference the table below. Once you find the income bracket that relates to your income, you can then calculate the amount of tax that you are liable for.

Income tax rates for the period 1 March 2016 to 28 Feb 2017

Taxable Income Rates of Tax
R0 – R188 000 + 18% of each R1
R188 001 – R293 600 R33 840 + 26% of the amount above R188 000
R293 601 – R406 400 R61 296 + 31% of the amount above R293 600
R406 401 – R550 100 R96 264 + 36% of the amount above R406 400
R550 101 – R701 300 R147 996 + 39% of the amount above R550 100
R701 301 and above R206 964 + 41% of the amount above R 701 300

Tax Rebates 2016-2017

Rebate
Primary R13 500
Secondary (Persons 65 and older) R7 407
Tertiary (Persons 75 and older) R2 466

Tax Thresholds 2016 – 2017

Age Tax Threshold
Below age 65 R75 000
Age 65 to below 75 R116 150
Age 75 and over R129 850

Comparative Tax Rates

Rates of Tax 2015 2016 2017
NATURAL PERSONS
Maximum marginal rate 40% 41% 41%
• Reached at a taxable income 673 100 701 300 701 300
Minimum rate 18% 18% 18%
• Up to taxable income of 174 550 181 900 188 000
• CGT inclusion rate 33.3% 33.3% 40.0%
COMPANIES AND CC’s
• Normal tax rate 28% 28% 28%
• Dividends Tax 15% 15% 15%
• CGT inclusion rate 66% 66% 66%
TRUSTS (other than special trusts)
• Flat rate 40% 41% 41%
• CGT inclusion rate 66.6% 66.6% 80.0%
SUNDRY
• Donations Tax 20% 20% 20%
• Estate Duty 20% 20% 20%
SMALL BUSINESS CORPORATIONS
Maximum marginal rate 28% 28% 28%
• Reached at a taxable income 550 000 550 000 550 000
Minimum rate 0% 0% 0%
• Up to taxable income of 70 700 73 650 75 000
MICRO BUSINESS
Max Rate of Tax 6% 3% 3%
• On Turnover of 750 000 750 000 750 000
Minimum Rate 0% 0% 0%
• Up to taxable income of 150 000 335 000 335 000

Tax Tables 2013 – 2016

If you need to access previous year’s tax tables, we have included links to these below:

Income Tax Rates 2016/2017

Income Tax Rates 2014/2015

Income Tax Rates 2013/2014

Income Tax Rates 2012/2013

Download Tax Guide 2016/2017

Every year we offer you a free tax guide. This guide contains all the important tax related details for the year including the tax brackets and tables listed above. Download the Free Tax Guide 2016/2017.

Are the numbers not making sense?

At Dirmeik Consulting, we understand that navigating the maze of tables and tax brackets may not always be an easy task for you or your business. That is why we are only a call away and provide a service that takes the stress out of tax administration while providing solid advice, backing our ethos of ‘more than just numbers’. Call us today:

Cape Town: 021 421 4444,
Johannesburg: 010 007 3026,
Durban: 031 007 0881


Share/Bookmark

4 Trackbacks