1. What is South African Income Tax?

Definition: A progressive tax system where individuals pay tax based on their annual income and age group, with different tax brackets and rebates.

Purpose: This calculator helps South African taxpayers estimate their annual and monthly tax obligations based on current SARS tax brackets.

2. How Does the Calculator Work?

The calculator uses SARS's progressive tax formula:

Where:

• \( Income \) — Annual taxable income in ZAR
• \( Rate \) — Progressive tax rate based on income bracket
• \( Rebate \) — Primary rebate based on age group

Explanation: The calculator applies different tax rates to portions of your income that fall within each tax bracket, then subtracts the applicable rebate.

3. Importance of Tax Calculation

Details: Accurate tax estimation helps with financial planning, budgeting, and ensuring compliance with SARS regulations.

4. Using the Calculator

Tips: Enter your annual income before tax and select your age group. The calculator will show your estimated annual and monthly tax.

5. Frequently Asked Questions (FAQ)

Q1: What are the current tax brackets?
A: For 2024, the tax brackets range from 18% (on income up to R237,100) to 45% (on income over R1,817,000).

Q2: How do age rebates work?
A: Primary rebates are R17,235 (under 65), R9,444 (65-75), and R3,145 (over 75). These reduce your tax liability.

Q3: Does this include medical tax credits?
A: No, this is a basic calculator. Medical tax credits would further reduce your tax.

Q4: What about retirement fund contributions?
A: This calculator shows gross tax. Contributions to retirement funds may reduce taxable income.

Q5: How often are tax brackets updated?
A: SARS typically adjusts brackets annually in February during the budget speech.