South African Tax Formula:
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Definition: This calculator estimates income tax liability for South African residents based on the 2025 tax brackets and rebates.
Purpose: It helps individuals and tax professionals estimate tax obligations for financial planning.
The calculator uses the progressive tax formula:
Where:
Explanation: The calculator applies different tax rates to portions of income within each bracket, then subtracts the applicable rebate.
Details: Accurate tax estimation helps with budgeting, financial planning, and ensuring compliance with SARS regulations.
Tips: Enter your annual income in ZAR and select your age group. The calculator uses the latest 2025 tax brackets and rebates.
Q1: Are these the official 2025 tax rates?
A: This calculator uses projected rates. Always verify with SARS when official 2025 rates are published.
Q2: What's included in taxable income?
A: Salary, bonuses, business income, rental income, and other taxable earnings before deductions.
Q3: Does this include medical credits or other deductions?
A: No, this calculates basic income tax. Additional deductions would reduce taxable income.
Q4: How often are tax brackets updated?
A: SARS typically announces new brackets annually during the budget speech.
Q5: What about provisional tax?
A: This calculator shows annual liability. Provisional tax payments would be based on this amount.