The numbers
The SARS rates and thresholds we compute against, straight out of the engine. Nothing on this
page is typed by hand, so it cannot drift away from what the calculator actually uses.
2023 (Mar 2022 to Feb 2023)
not yet signed off
These figures have not been ticked off against the published SARS tables by a human yet, so
treat them as provisional. Returns computed on an unconfirmed year are stamped draft and
cannot be sent for approval.
Unchanged
Retirement fund contribution cap
s11F annual ceiling on deductible contributions
R350 000
Capital gains annual exclusion
Gain excluded before the inclusion rate is applied
R40 000
Primary rebate
Deducted from tax payable, everyone gets it
R16 425
Tax threshold, under 65
Earn under this and you owe no tax
R91 250
Medical credit, main member
Per month, s6A
R347
Interest exemption, under 65
Local interest free of tax
R23 800
Rates of tax, individuals
| Taxable income | Rates of tax |
|---|
|
R0 – R226 000 |
18% of taxable income
|
|
R226 001 – R353 100 |
R40 680 + 26% of the amount above R226 000 |
|
R353 101 – R488 700 |
R73 726 + 31% of the amount above R353 100 |
|
R488 701 – R641 400 |
R115 762 + 36% of the amount above R488 700 |
|
R641 401 – R817 600 |
R170 734 + 39% of the amount above R641 400 |
|
R817 601 – R1 731 600 |
R239 452 + 41% of the amount above R817 600 |
|
R1 731 601 and above
|
R614 192 + 45% of the amount above R1 731 600 |
Three that are routinely got wrong
The retirement deduction has three limits, not two
Section 11F caps the deduction at 27.5%
of the greater of remuneration and taxable income, at R350 000 a year,
and at taxable income itself. That third limb is the one that gets left out, and leaving it out
overstates the deduction for anyone whose contributions run ahead of their income.
A capital gain raises the retirement headroom but not the ceiling
A taxable capital gain is included in the taxable income used for the
27.5% limb and excluded from the
taxable income used for the ceiling limb. Donations behave differently again: the gain does count
towards the 10% section 18A base.
Three limits, two different definitions of the same words.
18% is not the capital gains inclusion rate
SARS publishes 18% for individuals, and it is the maximum effective rate: the
40% inclusion rate
multiplied by the 45% top marginal rate. The inclusion rate is
40%.
Using 18% as an inclusion rate understates the gain for everyone below the top bracket.
Source: rates and thresholds published by SARS for the year shown, and the Budget tax guide.
Figures are reproduced for reference and are not tax advice. Where a year is marked as not yet
signed off, it has not been checked against the published tables by a person.
Numbers are the easy part
Knowing the rates does not find the money. Comparing what SARS holds against what your records prove does. See that comparison run.
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