South African Tax Formula (2025):
Taxable Income = Annual Income - Deductions
Tax = Calculated per bracket
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Definition: This calculator estimates income tax based on South Africa's progressive tax brackets for the 2025 tax year.
Purpose: Helps individuals and businesses estimate their tax liability based on projected income and deductions.
The calculator uses South Africa's progressive tax system:
Taxable Income = Annual Income - Deductions
Tax is calculated per bracket
2025 Tax Brackets (example):
Details: Accurate tax estimation helps with financial planning, budgeting, and avoiding underpayment penalties.
Tips: Enter your total annual income before deductions, then any applicable deductions (retirement contributions, medical expenses, etc.).
Q1: Are these the official 2025 tax rates?
A: These are projected rates based on current trends. Always verify with SARS for official rates.
Q2: What deductions can I claim?
A: Common deductions include retirement fund contributions (up to 27.5% of income), medical expenses, and travel expenses.
Q3: Does this include other taxes like VAT?
A: No, this calculator only estimates personal income tax.
Q4: How often are tax brackets adjusted?
A: Typically annually to account for inflation (bracket creep adjustment).
Q5: Where can I get official tax information?
A: Visit the South African Revenue Service (SARS) website: www.sars.gov.za