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

Income Tax Brackets

March 3, 2017

After this year’s budget, most tax brackets saw their ceilings raised slightly while the most significant change was the introduction of a new tax bracket for the wealthy.

 

 

Income Tax Calculators

The tax brackets below are key to calculating your taxable income and are what online tax calculators use to provide you with a final figure. However before you default to using one of these online tools, it is valuable to understand their pitfalls.

While it is critical to pay the taxes you owe, there are many factors that will influence your final taxable income depending on the type of business and even industry you are in. This is one of the reasons it is advisable to consult with a tax professional. For a nominal fee, you can rest assured that you will be paying the correct tax and in the process, you may see a considerable saving. This is the value that a tax calculator simply cannot offer you.

Income tax brackets for the period 1 March 2017 to 28 Feb 2018

Taxable Income Rates of Tax
R0 – R189 880 + 18% of each R1
R189 881 – R296 540 R34 178 + 26% of the amount above R189 880
R296 541 – R410 460 R61 910 + 31% of the amount above R296 540
R410 461 – R555 600 R97 225 + 36% of the amount above R410 460
R555 601 – R708 310 R149 475 + 39% of the amount above R555 600
R708 311 – R1 500 000 R209 032 + 41% of the amount above R 708 310
R1 500 001 and above R533 625 + 45% of the amount above R 1 500 000

Tax Rebates 2017-2018

Rebate
Primary R13 635
Secondary (Persons 65 and older) R7 479
Tertiary (Persons 75 and older) R2 493

Tax Thresholds 2017 – 2018

Age Tax Threshold
Below age 65 R75 750
Age 65 to below 75 R117 300
Age 75 and over R131 150

Comparative Tax Rates

Rates of Tax 2016 2017 2018
NATURAL PERSONS
Maximum marginal rate 41% 41% 45%
• Reached at a taxable income 701 300 701 300 1 500 000
Minimum rate 18% 18% 18%
• Up to taxable income of 181 900 188 000 189 800
• CGT inclusion rate 33.3% 40.0% 40.0%
COMPANIES AND CC’s
• Normal tax rate 28% 28% 28%
• Dividends Tax 15% 15% 20%
• CGT inclusion rate 66.6% 80% 80%
TRUSTS (other than special trusts)
• Flat rate 41% 41% 45%
• CGT inclusion rate 66.6% 80.0% 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 73 650 75 000 75 750
MICRO BUSINESS
Max Rate of Tax 3% 3% 3%
• On Turnover of 750 000 750 000 750 000
Minimum Rate 0% 0% 0%
• Up to taxable income of 335 000 335 000 335 000

Previous Tax Brackets

If you need to review a previous year’s income tax bracket, we have included quick links below for tax tables spanning the last 5 years:

Income Tax Rates 2017/2018

Income Tax Rates 2016/2017

Income Tax Rates 2014/2015

Income Tax Rates 2013/2014

Income Tax Rates 2012/2013

Free Tax Guide 2017/2018

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 2017/2018.

Speak to a Tax Consultant

While these tax tables may seem simple enough to understand, they do not take into account all of the other figures in your business that will affect your final taxable income. Reach out to Dirmeik Consulting for expert tax advice.

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


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