By Chris Herbst, Chartered Business Accountant in Practice (CBAP) with CIBA, General Tax Practitioner (GTP) with SAIT, Stellenbosch University. Team registered with SAIT, SAIPA and CIBA.
The Budget 2026 tax tables are the numbers behind every personal tax calculation for the 2027 tax year, which runs from 1 March 2026 to 28 February 2027. They decide what your salary costs you in PAYE, what your provisional tax payments should be and what your ITR12 will show next year. This guide sets out each table as SARS publishes it, shows how it changed from the 2026 tax year, and explains how to use it for the second IRP6 due in February 2027.
What are the Budget 2026 tax tables for the 2027 tax year?
The Budget 2026 tax tables are the income tax brackets, rebates and tax thresholds the Minister of Finance announced on 25 February 2026 for individuals, published by SARS on its rates of tax for individuals page. They apply to taxable income earned from 1 March 2026 to 28 February 2027.
Three tables work together. The brackets give the tax on your taxable income. The rebates reduce that tax, and the size of the rebate depends on your age. The thresholds are the result of the two: the level of taxable income below which the rebate cancels the tax completely.
Why do the 2027 tables matter now?
Most people meet the tables twice. Employers use them for PAYE from March 2026, so salary earners have been taxed on them all year. Provisional taxpayers use them to estimate the tax for their IRP6 payments, and the second 2027 payment falls due at the end of February 2027.
Are the Budget 2026 measures final?
SARS states in its Budget 2026 frequently asked questions that the questions are issued on the Minister's announcement of 25 February 2026 and are subject to Parliament's legislative process. SARS has applied the 2027 rates, rebates and thresholds on its rates page, so they are the figures to use for 2027 estimates.
What are the 2027 income tax brackets?
The 2027 income tax brackets run from 18% on the first R245 100 of taxable income to 45% on taxable income above R1 878 600, as set out on the SARS rates of tax for individuals page. Each rate applies only to the slice of income inside its bracket.
- R1 to R245 100: 18% of taxable income.
- R245 101 to R383 100: R44 118 plus 26% of taxable income above R245 100.
- R383 101 to R530 200: R79 998 plus 31% of taxable income above R383 100.
- R530 201 to R695 800: R125 599 plus 36% of taxable income above R530 200.
- R695 801 to R887 000: R185 215 plus 39% of taxable income above R695 800.
- R887 001 to R1 878 600: R259 783 plus 41% of taxable income above R887 000.
- R1 878 601 and above: R666 339 plus 45% of taxable income above R1 878 600.
Did the brackets move for inflation in 2027?
Yes. The Budget 2026 FAQ states that the 2026/27 brackets were adjusted by 3.4% for inflation, the first inflationary relief since the 2023/24 year. The SARS rates page records "No changes" for both the 2025 and 2026 tax years, so the 2027 table is the first new bracket table since the 2024 year.
What is the top marginal rate for 2027?
The top marginal rate for individuals stays at 45%, and it starts at taxable income above R1 878 600. Your marginal rate is the rate on your next rand of income, not the average rate on all of it.
What are the 2027 rebates and tax thresholds by age?
For 2027 the primary rebate is R17 820, the secondary rebate for people aged 65 and older is R9 765, and the tertiary rebate for people aged 75 and older is R3 249. The rebates stack, so a person aged 75 gets all three. The thresholds below come from the same SARS rates page.
- Under 65: 2027 threshold: R99 000; 2026 threshold: R95 750
- 65 to 74: 2027 threshold: R153 250; 2026 threshold: R148 217
- 75 and older: 2027 threshold: R171 300; 2026 threshold: R165 689
What does the tax threshold mean in practice?
If your taxable income for the 2027 year is below the threshold for your age, the rebate covers the whole bracket tax and you owe no income tax. Above it, you pay tax on the full taxable income less the rebate, not only on the amount above the threshold.
Which age counts for the secondary and tertiary rebates?
The age that counts is the age you reach by the last day of the tax year. A person who turns 65 at any point up to 28 February 2027 qualifies for the secondary rebate for the whole 2027 year, and the same applies at 75 for the tertiary rebate.
What changed from the 2026 tax year?
Every individual table moved for 2027: the brackets, the rebates, the thresholds, the medical credits and several capital gains exclusions. The Budget 2026 FAQ sets out each change, and the full announcement is in the National Treasury Budget 2026 documents.
- Primary rebate: R17 820, up from R17 235.
- Secondary rebate: R9 765, up from R9 444.
- Tertiary rebate: R3 249, up from R3 145.
- Threshold under 65: R99 000, up from R95 750.
- Retirement fund deduction cap: R430 000 a year, up from R350 000, still limited to 27.5% of the greater of remuneration or taxable income.
- Annual capital gains exclusion: R50 000, up from R40 000.
- Primary residence exclusion: R3 000 000, up from R2 000 000.
How much less tax does a typical earner pay in 2027?
Take taxable income of R400 000 for a person under 65. On the 2027 table the tax is R79 998 plus 31% of R16 900, which is R85 237, less the R17 820 primary rebate: R67 417. On the 2026 table the same income gives R77 362 plus 31% of R29 500, which is R86 507, less R17 235: R69 272. The 2027 tables reduce the tax on that income by R1 855.
Did the interest exemption change?
No. The Budget 2026 FAQ gives the interest exemption for 2026/27 as R23 800 a year for people under 65 and R34 500 a year for people aged 65 and older. Interest earned inside a tax-free savings account is exempt on its own terms and does not use up these limits.
How do the tables feed your IRP6 estimate?
Your IRP6 payment is the tax on your estimated taxable income for the full year, worked out on the 2027 tables, less your rebates, medical credits, PAYE already deducted and any earlier provisional payment for the year. SARS's provisional tax page sets out the two compulsory payments and the optional third payment.
Which tables apply to the February 2027 IRP6?
The second IRP6 for the 2027 year of assessment uses the 2027 tables, because it is a payment towards the tax on income earned from 1 March 2026 to 28 February 2027. It is due by the last business day of February, which is Friday 26 February 2027. Our guide to the second IRP6 payment for 2027 covers the estimate and the penalty tests in detail.
Do the new thresholds change who must file an IRP6?
The thresholds feed one of the exclusions from provisional tax. SARS's provisional tax page states that a natural person who does not carry on a business is not a provisional taxpayer if taxable income for the 2027 year will not exceed R99 000 under 65, R153 250 from 65 to 74, or R171 300 at 75 and older, or if taxable income from interest, foreign dividends, rental and remuneration from an unregistered employer will not exceed R30 000. Our article on how provisional tax works in South Africa covers the wider rules.
What are the practical steps to use the 2027 tables for your IRP6?
Work through the estimate in a fixed order, then capture it on eFiling. Each step below names the document or screen involved.
- Collect your income records: your payslips showing PAYE to date, IT3(b) certificates or bank statements for interest, rental statements and business accounts.
- Estimate taxable income for the full year: project income to 28 February 2027, then deduct retirement fund contributions within the new R430 000 cap and other allowable deductions.
- Apply the 2027 brackets: find your bracket on the SARS rates page and compute the bracket tax.
- Deduct the rebates for your age: primary, and secondary or tertiary where you qualify by 28 February 2027.
- Deduct medical scheme fees tax credits: use the 2027 monthly credits for the months you were a member.
- Deduct PAYE and your first IRP6 payment: PAYE from your payslips and the amount paid on the August 2026 IRP6.
- Request the IRP6 on eFiling: log in, open Returns, then Returns Issued and Provisional Tax (IRP6), select the 2027 year and the second period.
- Capture, submit and pay: enter estimated taxable income and the tax calculated, submit, and pay using the payment reference number on the IRP6 before the due date.
If you are working out a first-period estimate for a new source of income, our walkthrough of the first IRP6 calculation shows the method from the start.
How do medical credits and capital gains fit into the 2027 tables?
Medical scheme fees tax credits and the capital gains exclusions sit alongside the brackets. They are not in the bracket table, but they change the tax the table produces.
What are the 2027 medical scheme fees tax credits?
SARS's medical tax credit rates page gives R376 a month for the taxpayer, R752 a month for the taxpayer and one dependant, and R254 a month for each additional dependant for the 2027 year, up from R364, R728 and R246. Our guide to medical tax deductions explains the additional credit for out-of-pocket costs.
How are capital gains taxed in 2027?
SARS's capital gains tax page gives a maximum effective rate of 18% for individuals, because only part of a net capital gain is included in taxable income and then taxed at your marginal rate. The first R50 000 of net gain or loss in the year is excluded under the 2027 annual exclusion.
Whether a gain is capital or revenue is decided on the taxpayer's own facts. SARS weighs the intention with which the asset was acquired and held, the holding period, the frequency of transactions and the other circumstances of the case. A gain on revenue account is taxed in full at the marginal rate, and the annual exclusion does not apply to it.
Do the retirement fund changes affect the tables?
The retirement fund deduction reduces taxable income before the brackets apply. With the cap at R430 000 for 2027, a higher contribution reduces the income the table taxes. Our article on the tax benefits of retirement annuities explains how the deduction works.
What are the common mistakes when using the tax tables?
Most errors come from using the right table in the wrong way, or the wrong year's table. These are the ones we correct most often.
- Using the 2026 table for a 2027 estimate: the 2026 brackets and rebates are lower, so the estimate comes out too high.
- Applying the top rate to all income: each rate applies only to its slice, so a 41% marginal rate does not mean 41% of all taxable income.
- Treating the threshold as a deduction: above the threshold, tax is calculated on the full taxable income less the rebate.
- Forgetting PAYE already paid: salary earners with side income deduct the PAYE on their IRP5 before working out the IRP6 amount.
- Leaving out the age rebate: a taxpayer who turns 65 before 28 February 2027 is entitled to the secondary rebate for the whole year.
- Mixing up the IRP6 and the ITR12: the IRP6 is an advance payment; the ITR12 is the annual return where the year is settled. Our guide to IRP6 vs ITR12 sets out the difference.
When will you file the ITR12 for the 2027 tax year?
The ITR12 for the 2027 year is filed in the 2027 filing season, after the year ends on 28 February 2027. SARS publishes the season dates each year; the dates for the current season are in our guide to personal tax deadlines for 2026.
Will my assessment use these tables automatically?
Yes. When SARS assesses your 2027 return, the eFiling calculation applies the 2027 brackets, rebates and medical credits to the taxable income on your ITR12, and credits the PAYE and provisional tax you paid during the year.
Do You Need Help With the Budget 2026 Tax Tables?
We calculate provisional tax estimates on the 2027 tables, file the IRP6 for you and prepare the ITR12 when the year closes. See our provisional tax service and provisional tax pricing, or contact us to have your February 2027 estimate prepared.
