The 2025/2026 tax year commenced on 1 March 2025. SARS published updated tax tables, rebates and thresholds that every employer running payroll in South Africa must implement immediately.
Updated PAYE Tax Brackets
The tax brackets for individuals are marginally adjusted for inflation. The key change is that the primary rebate increased to R17,235 (up from R16,425), meaning employees in lower income bands will see a slight reduction in their monthly PAYE.
| Taxable Income | Rate |
|---|---|
| R0 – R237,100 | 18% |
| R237,101 – R370,500 | 26% on excess above R237,100 + R42,678 |
| R370,501 – R512,800 | 31% on excess above R370,500 + R77,362 |
| R512,801 – R673,000 | 36% on excess above R512,800 + R121,475 |
| R673,001 – R857,900 | 39% on excess above R673,000 + R179,147 |
| R857,901 – R1,817,000 | 41% on excess above R857,900 + R251,258 |
| R1,817,001+ | 45% on excess above R1,817,000 + R644,489 |
Rebates for 2025/2026
- Primary rebate: R17,235 (all taxpayers)
- Secondary rebate: R9,444 (taxpayers aged 65–74)
- Tertiary rebate: R3,145 (taxpayers aged 75+)
Tax Thresholds
- Under 65: R95,750 — no tax below this annual income
- 65 to 74: R148,217
- 75 and over: R165,689
Medical Tax Credits
Monthly medical aid tax credits increased slightly:
- Main member: R364/month
- First dependant: R364/month
- Each additional dependant: R246/month
UIF Ceiling
The UIF monthly income ceiling remains at R17,712. Maximum employee UIF contribution remains at R177.12 per month.
What You Need to Do
Update your payroll software with the new tax tables before processing March 2025 payroll. If you use TSS Payroll, the tables are already updated automatically — no action required.