South Africa Tax Rates 2026/27

Current South African tax rates for individuals and businesses, including the 2027 tax year personal income-tax brackets, rebates and thresholds, corporate income tax, small business corporation rates, VAT, capital gains tax and dividends tax.

Updated: 3 September 2026. South Africa's 2027 individual tax year runs from 1 March 2026 to 28 February 2027.

South Africa individual income tax rates for 2026/27

For the 2027 tax year (1 March 2026 to 28 February 2027), individuals are taxed on taxable income using the following progressive rates:

2027 tax rebates

2027 income-tax thresholds

Corporate income tax in South Africa

The general company income-tax rate is 27% for years of assessment ending on any date from 1 April 2026 to 31 March 2027. The same 27% rate applied to company years ending from 1 April 2025 to 31 March 2026.

Trusts other than special trusts

Trusts other than special trusts are taxed at a flat rate of 45% for the 2027 tax year.

Small Business Corporation rates for 2026/27

Qualifying Small Business Corporations for years of assessment ending between 1 April 2026 and 31 March 2027 are taxed as follows:

Turnover tax for micro businesses

For the 2027 tax year, qualifying micro businesses may use the turnover-tax system. The revised 2026/27 bands are:

Capital gains tax in South Africa

Capital gains tax is not a separate tax. A taxable capital gain is included in taxable income under the Eighth Schedule to the Income Tax Act, 1962. The inclusion rate for natural persons and special trusts is 40%; for companies and ordinary trusts it is generally 80%.

For the 2027 tax year, the maximum effective CGT rates are approximately 18% for individuals and special trusts, 21.6% for companies and 36% for other trusts.

For 2027, individuals and special trusts generally receive an annual capital-gain or capital-loss exclusion of R50,000. SARS also states a R3 million primary-residence exclusion and a R440,000 exclusion in the year of death, subject to the applicable rules.

Dividends tax and other withholding taxes

Dividends received by individuals from South African companies are generally exempt from normal income tax, but a 20% dividends tax is generally withheld from taxable dividends. An exemption or reduced rate may apply under domestic law or an applicable tax treaty.

South African-source interest and royalties paid to non-residents are generally subject to a 15% final withholding tax, subject to exemptions and treaty reductions. Certain payments to non-resident entertainers and sportspersons are also subject to a 15% withholding tax.

South Africa VAT rate in 2026

The standard VAT rate remains 15%. The previously proposed increases for 2025 and 2026 were reversed. Certain supplies are zero-rated or exempt.

From 2026, compulsory VAT registration generally applies where taxable supplies exceed R2.3 million in an uninterrupted 12-month period, while voluntary registration may be available where taxable supplies exceed R120,000, subject to the VAT Act and SARS requirements.

Residents and non-residents

South African tax residents are generally taxable on worldwide income, subject to exemptions, credits and double-tax agreements. Non-residents are generally taxable on South African-source income and on specified South African capital gains.

A non-resident disposing of South African immovable property can also be subject to section 35A withholding, which operates as an advance payment toward the seller's final tax liability.

Disclaimer: This page provides a general overview. Actual liability can depend on residence, entity type, deductions, exemptions, treaties, timing, tax-year rules and later legislative amendments.