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SARS Tax Brackets & Tax Tables for 2024-2025

In the 2024-2025 tax year, tax brackets in South Africa continue to operate on a progressive basis, with tax brackets and rates adjusted for inflation.

The tax tables for individuals, Companies, and Small Business Corporations for the current year remain the same as the previous year. 

Familiarising oneself with these SARS tax brackets and rates is essential for effective tax planning and compliance with South African tax laws.

Depending on whether you are operating as a Sole Proprietor, a Company / Close Corporation or a qualifying Small Business Corporation, or a Trust; you would need to look at different tax brackets:

  • Sole Proprietors are taxed according to the individual tax brackets
  • Companies and Close Corporations are taxed according to the company tax brackets
  • Small Business Corporations are taxed according to the Small Business Corporations' tax brackets

These different tax rates are covered below in more detail.

Personal Income Tax

In South Africa, you are required to pay income tax if you earn more than:

  • R95 750 and you are younger than 65 years.
  • If you are 65 or older but younger than 75 years old, the tax threshold (i.e. the amount above which income tax becomes payable) is R148 217.
  • For taxpayers aged 75 years and older, this threshold is R165 689.

SARS Personal Income Tax Table 2024/2025

For individuals, the SARS tax table shows the amount of tax due based on the income individuals receive. The tax rates range from 18% to 45%, applied to different income brackets. 

The tax rate in the personal income tax table below may be shown as an amount, a percentage rate, or a combination of both.

Taxable Income (R)

Rate of Tax (R)

1 – 237 000

18% of taxable income

237 101 – 370 500

42 678 + 26% of taxable income above 237 100

370 501 – 512 800

77 362 + 31% of taxable income above 370 500

512 801 – 673 000

121 475 + 36% of taxable income above 512 800

673 001 – 857 900

179 147 + 39% of taxable income above 673 000

857 901 – 1 817 000

251 258 + 41% of taxable income above 857 900

1 817 001 and above

644 489 + 45% of taxable income above 1 817 000

The higher your taxable income, the more tax you are due to pay. Your taxable income is your profit from your business less than any taxable deductions that are awarded to you as a Sole Trader. 

The deductions that you can use include Retirement Annuities, Donations to a Public Benefit Organisation (PBO) and Medical Expenses. These deductions are all calculated differently with different limitations.

Tax Threshold for Individuals

In some instances, where your taxable income is below a certain level according to your age group, you will not pay any taxes. These are the tax thresholds for individuals:

Age 

Tax Threshold

Below age 65

R95 750

Age 65 to below 75

R148 217

Age 75 and older

R165 689

If you are a Sole Trader, you would need to pay provisional taxes which are filed twice every year to pay forward your estimated taxes.

If you do not do this, you will incur penalties and interest on your under-declaration of your income.

Pension, Provident and Retirement Annuity Fund Contributions

Retirement fund lump sum benefits consists of:

  • Lump sums from a pension
  • Pension preservation
  • Provident preservation 
  • Retirement annuity fund on death, retirement, or termination of employment due to attaining the age of 55 years, sickness, accident, injury, incapacity, redundancy, or termination of the employer’s trade.

Medical Aid Tax Credits

The medical scheme fees tax credit is a rebate that reduces the amount of income tax you owe. It's based on the monthly contributions you make to your medical scheme. 

These contributions are subtracted from your taxable income, so you end up paying less tax. It's a way to help you afford medical expenses and encourage people to join medical schemes.

Per Month (R)

2024-2025

For the taxpayer who paid the medical scheme contributions

R364

For the first dependant

R364

For each additional dependant(s)

R246

Rebates

Rebates

2024-2025

Primary

R17 235

Secondary (Persons 65 and older)

R9 444

Tertiary (Persons 75 and older)

R3 145

Close Corporations and Company Tax Rates in South Africa

A private company is seen as a legal entity in South Africa. These are profit companies and non-profit companies such as clubs, churches and other charitable organizations.

Profit companies are the most commonly used entity type in South Africa. These are the easiest to form and are mainly owner-run businesses.

Additionally, close corporations, which were once similar to companies and were previously used, can no longer be registered.

For the year ending on or after 28th February 2025. Here is the tax rate for close corporations: 

Type 

Rate of Tax (R)

Companies

27% of taxable income

SARS Small Business Corporations Tax Table 2024/2025

A small business corporation is taxed differently and there are major tax benefits for qualifying small businesses. However, there are strict rules that need to be met before an entity can qualify as a Small Business Corporation (SBC).

Here are the requirements:

  • Must be a corporate entity (Close Corporation, Private Company or Personal Liability Company).
  • All shareholders of the entity must all be natural persons.
  • The entity may not have a turnover of more than R 20 million.
  • Shareholders may not hold shares in other companies.
  • Entity may not be a personal service provider.

For the year of assessment 1st April 2024 to 31st March 2025:

Taxable Income (R)

Rate of Tax (R)

1 – 95 750

0% of taxable income

95 751 – 365 000

7% of taxable income above 95 750

365 001 – 550 000

18 848 + 21% of taxable income above 365 000

550 001 and above

57 698 + 27% of the amount above 550 000

For enterprises, close corporations, personal liability companies and those which qualify as a Small Business Corporation, your Net Profit on which your tax is payable is your total taxable income (excluding any capital proceeds) less any qualified deductions and special allowances.

Once you come to your Net Taxable Income, you will then pay your taxes based on that taxable income.

Dividends Tax

Dividends tax is a final tax on dividends at a rate of 20%, paid by resident companies and non-resident companies in respect of shares listed on the Johannesburg Stock Exchange (JSE) or other South African licensed exchange.

Dividends are tax-exempt if the beneficial owner of the dividend is a South African company, retirement fund or other exempt people. Non-resident beneficial owners of dividends may benefit from reduced tax rates in limited circumstances

Deductions

Filing a tax return is one of the many inescapable (and sometimes nasty) realities of being a working adult. More than that, it’s a legal requirement, and failing to file a tax return could land you in serious legal trouble with government agencies. 

However, during this process, you will also report your tax deductions, which are business expenses that can lower the amount of tax you have to pay during the fiscal year. 

The SARS has a list of available tax tables to help you calculate your deductions, you can use the links below to access them: 

Retirement Fund Contributions

Amounts contributed to a pension, provident and retirement annuity funds during a year of assessment are deductible by members of those funds. 

The deduction is limited to 27.5% of the greater of the amount of remuneration for PAYE purposes or taxable income (both excluding retirement fund lump sums and severance benefits).

Medical and Disability Expenses

Monthly contributions to medical schemes (a tax rebate referred to as a medical scheme fees tax credit) by the individual who paid the contributions are up to R364 for each of the first two persons covered by those medical schemes, and R246 for each additional dependent.

Travel Allowances

If you have to travel often for work and your employer pays a travel allowance, you can get some cash back from SARS. Make sure you keep a detailed logbook of your trips and the costs involved otherwise SARS will reject your claim. At least there is some payback for the taxing times spent on the road!

Deductible Business Expenses (Self-employed)

Independent contractors, freelancers and sole proprietors, take note of the self-employed expenses eligible for tax deductions. Whether it’s stationery, telephone or employee costs, SARS will allow you to deduct all expenses related to making your income. 

Making sure you are very thorough when it comes to keeping all invoices and records of these expenses will help you prepare for tax time. If you use QuickBooks accounting software, keeping track of invoices, expenses and receipts is a breeze.

Other Deductions for Self-employed People

Other than the deductions set out above, an individual may only claim deductions against employment income or allowances in limited specified situations, e.g. bad debt in respect of salary.

Transfer Duty

Transfer duty is payable at the following rates on transactions which are not subject to VAT:

Acquisition of property by all persons:

Value of property (R)

Rate

1 – 1 100 000

0%

1 100 001 – 1 512 500

3% of the value above R1 100 000

1 512 501 – 2 117 500

R12 375 + 6% of the value above R 1 512 500

2 117 501 – 2 722 500

R48 675 + 8% of the value above R 2 117 500

2 722 501 – 12 100 000

R97 075 +11% of the value above R2 722 500

12 100 001 and above

R1 128 600 + 13% of the value exceeding R12 100 000

Turnover Tax

A turnover tax is similar to VAT, with the difference that it taxes intermediate and possibly capital goods. It is an indirect tax, typically on an ad valorem basis, applicable to a production process or stage.

Taxable turnover (R) 

Taxable turnover (R) 

1 – 335 000

0% of taxable turnover

335 001 – 500 000

1% of taxable turnover above 335 000

500 001 – 750 000

1 650 + 2% of taxable turnover above 500 000

750 001 and above

6 650 + 3% of taxable turnover above 750 000

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More Useful Information about Taxes in South Africa 

What is a tax bracket?

The tax brackets in South Africa show the rate that a person will need to pay for your income proportion, which differs depending on filing status. Such rates are determined annually by the parliament and rise with income. 

Examples of incomes received by an individual that are used to determine taxable income include:

  • Remuneration (income from employment), such as salaries, wages, bonuses, overtime pay, taxable fringe benefits, allowances and certain lump sum benefits
  • Profits or losses from a business or trade
  • Income or profits arising from an individual being a beneficiary of a trust
  • Director’s fees
  • Investment income, such as interest and foreign dividends
  • Rental profit or losses
  • Income from royalties
  • Annuities
  • Pension income
  • Certain capital gains

Why are tax brackets important for businesses in South Africa? 

Understanding tax brackets are important for individuals and businesses alike as they need to be aware of the amount of taxes payable and when they are required to file tax returns. 

To ensure a smooth business operation and save yourself from legal problems, it is important to fully comply with government regulations.


This knowledge is handy when you need to make certain financial decisions, for example, selling a property in Cape Town, donating, or investing.

What is a Sole Proprietor?

A sole proprietorship, also known as a sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

A sole trader does not necessarily work 'alone' — it is possible for the sole trader to employ other people. With this, the sole trader would receive all the profits and that is his or her income. The sole trader owns all assets and debt. 

The sole trader may use a trading name for their business. As a sole trader, you are taxed using the individual tax rates table above, which are sliding scales based on your taxable income.

What is Provisional Tax?

A provisional taxpayer is any person who earns income by way of remuneration from an unregistered employer or income that is not remuneration, or an allowance or advance payable by the person’s principal. 

An individual is not required to pay provisional tax if he or she does not carry on any business, and the individual's taxable income: 

  • Will not exceed the tax threshold for the tax year; or 
  • From interest, dividends, foreign dividends, rental from the letting of fixed property, and remuneration from an unregistered employer will be R30 000 or less for the tax year.

How QuickBooks Can Help With Your Taxes in South Africa

When tax time comes, you need to make sure that all of your information is organised and up to date. With QuickBooks Online, you can manage your accounting, VAT claims, invoicing, job costing, and much more, so you can make your tax and business management a breeze. Try QuickBooks free for 30 days today.

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