South African Income Tax rates for 2016/2017

Finance Minister Pravin Gordhan delivered his 2016 Budget on 24 February, and surprised analysts by not hiking the personal income tax rate.

Tax rates for companies and VAT were not increased either.

“However, as part of fiscal measures to narrow the budget deficit and stabilise debt growth, government proposes to raise an additional R18.1bn in revenue in R2016/17,” reported Fin24.

“This will mainly be achieved by upward adjustments to capital gains tax (the effective rate raised from 13.7% to 16.4% for individuals), transfer duty (11% to 13% on property sales above R10m) and increases in excise duties, the general fuel levy (30 cents per litre), and environmental taxes.”

The tables below detail the income tax rates for the year ahead.

Income Tax 2016/2017

Income Tax (1 March 2016 – 28 February 2017)
Taxable income Rates of tax
0 – 188 000 18% of taxable income
188 001 – 293 600 33 840 + 26% of taxable income above 188 000
293 601 – 406 400 61 296 + 31% of taxable income above 293 600
406 401 – 550 100 96 264 + 36% of taxable income above 406 400
550 101 – 701 300 147 996 + 39% of taxable income above 550 100
701 301 and above 206 964 + 41% of taxable income above 701 300

Tax thresholds and rebates

Tax Threshold 2016/17
Under 65 R75 000
65 and older R116 150
75 and older R129 850
Tax Rebate  2016/17
Primary R13 500
Secondary (65 and older) R7 407
Tertiary (75 and older) R2 466

More on the 2016 budget

Gordhan should have killed e-tolls: Outa

South African budget in a nutshell

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South African Income Tax rates for 2016/2017