How South African income tax works
SARS uses a sliding scale — different portions of your income are taxed at progressively higher rates. Only the income within each bracket is taxed at that bracket's rate, not your entire income.
Tax rebates are fixed amounts subtracted directly from your tax liability, not your income. Every taxpayer under 75 receives the Primary Rebate (R17,235). If you are 65 or older you also receive the Secondary Rebate (R9,444). At 75 or older the Tertiary Rebate (R3,145) applies as well.
Medical Aid Tax Credits reduce your tax liability by R364 per month for the first two beneficiaries (you and one dependant) and R246 per month for each additional member. The credit is non-refundable — it can only reduce your tax to zero.
This calculator does not account for retirement annuity deductions, pension fund contributions, or other allowable deductions that may further reduce your taxable income. For complex tax situations consult a registered tax practitioner.