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Understanding Money

You Can Earn Almost R100,000 a Year Before Paying Any Income Tax

For the 2026/2027 tax year, South Africans under 65 pay no income tax at all on taxable income below R99,000 a year, thanks to the primary rebate of R17,820 which cancels out tax owed up to that level.

This threshold quietly shapes who actually needs to submit a tax return and who falls outside the income tax net entirely — relevant for part-time workers, small-scale freelancers and pensioners living off modest savings. It also explains why a modest salary increase doesn't always mean a big jump in take-home pay: SARS adjusts brackets and rebates for inflation each year to stop "bracket creep," where inflation alone pushes people into paying more tax on income that hasn't grown in real terms.

Source: SARS

Frequently Asked Questions

Does earning below the tax threshold mean you never have to file a tax return?

Not automatically — SARS can still require a return in certain circumstances, even below the threshold, so it's worth checking your specific filing obligation rather than assuming.

Why did the threshold increase for 2026/2027?

SARS adjusted the tax brackets and rebates upward by 3.4% to offset inflation, the first such inflationary adjustment since the 2023/24 tax year.

Is the tax threshold the same as the tax-free amount on a bank account?

No — this threshold applies to total taxable income across all sources; separate, smaller exemptions exist specifically for interest earned on savings.

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