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

SARS – Rates of Tax for Individuals

May 27, 2018
Tax Brackets 2018

Each year, the South African Revenue Service (SARS) releases a set of tax tables to assist you in calculating your tax liability from your taxable income.

What is my taxable income?

Your taxable income is not necessarily a tax you are only liable to pay on a salary or wage. You may also be liable for paying income tax to SARS if you receive remuneration from:

  • Additional employment-related benefits such taxable fringe or lump sum benefits, overtime pay, certain lump sump benefits, etc
  • Income received from renting property
  • Pension-related income
  • Annuity-related income
  • Specific capital gains
  • Profits from a business
  • Income or benefits from a trust
  • Dividends from investments
  • Fees arising from a directorship
  • …and more.

Any of these combine together to form your taxable income.

Personal Income Tax Tables 2018

With the taxable income you have earned over the period of the year, use the tables below to find the tax bracket you fall under:

Income tax brackets for the period 1 March 2018 to 28 Feb 2019

Taxable Income Rates of Tax
R0 – R195 850 + 18% of each R1
R195 851 – R305 850 R35 253 + 26% of the amount above R195 850
R305 851 – R423 300 R63 853 + 31% of the amount above R305 850
R423 301 – R555 600 R100 263 + 36% of the amount above R423 300
R555 601 – R708 310 R147 891 + 39% of the amount above R555 600
R708 311 – R1 500 000 R207 448 + 41% of the amount above R 708 310
R1 500 001 and above R532 041 + 45% of the amount above R 1 500 000

Tax Rebates 2018-2019

Rebate
Primary R14 067
Secondary (Persons 65 and older) R7 713
Tertiary (Persons 75 and older) R2 574

Tax Thresholds 2018 – 2019

Age Tax Threshold
Below age 65 R78 150
Age 65 to below 75 R121 000
Age 75 and over R135 300

Comparative Tax Rates

Rates of Tax 2017 2018 2019
NATURAL PERSONS
Maximum marginal rate 41% 45% 45%
• Reached at a taxable income 701 300 1 500 000 1 500 000
Minimum rate 18% 18% 18%
• Up to taxable income of 188 000 189 880 195 850
• CGT inclusion rate 40% 40% 40%
COMPANIES AND CC’s
• Normal tax rate 28% 28% 28%
• Dividends Tax 15% 20% 20%
• CGT inclusion rate 80% 80% 80%
TRUSTS (other than special trusts)
• Flat rate 41% 45% 45%
• CGT inclusion rate 80% 80% 80%
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 75 000 75 750 78 150
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

Tax Tables for each year

If you are calculating your tax liability for any period other than March 2018 to February 2019, access the relevant tax tables below from previous years:

Income Tax Rates 2017/2018

Income Tax Rates 2016/2017

Income Tax Rates 2015/2016

Income Tax Rates 2014/2015

Income Tax Rates 2013/2014

Income Tax Rates 2012/2013

Download tax tables

We are offering a free booklet for download in order to access the tax tables offline: Download the Free Tax Guide 2018/2019.

Need help calculating your tax liability?

If you find tax confusing or feel there is just not enough time in the day, Dirmeik Consulting can assist you in everything tax related.

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


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