What is the Minimum Salary to Pay Tax in South Africa?

Do you need to know the minimum salary that makes you tax-liable in South Africa? The South Africa Revenue Service has divided the tax rates into categories so each individual is taxed according to income. If you’ve recently started working or have a business, refer to the table below.

It explains the minimum salary/income that makes South African citizens liable to pay taxes. Moreover, you can have an idea about the tax rates determined by the government.

Minimum Salary to Pay Tax in South Africa

South African citizens are liable to pay taxes according to their monthly income. The government fixes a tax rate for each income slab. It helps calculate each individual’s taxation according to their monthly or annual income.

The information in today’s article can help people who have recently invested in a business or been promoted. You will know the maximum salary that makes you liable and the slab you fall in.

Tax Threshold

The SARS, or South African Revenue Service, determines the tax each individual has to pay according to their salary. These rates are revised yearly, so each taxpayer is taxed according to the profit he makes. The table explains the tax rates for the year 2023 to 2024 according to SARS.

IncomeTax in ZARTax on Access Amount
R1 to R237 100R018%
R237 101 to R370 500R42 67826 %
R370 501 to R512 800R77 36231%
R512 801 to R673 000R121 47536%
R673 001 to R857 900R179 14739%
R857 901 to R1 817 000R251 25841%
R1 817 001 and aboveR644 48945%

Age and Income

You must be under 65 and earn R95 750 to pay taxes in South Africa. The citizens earning less than this amount are not liable to pay taxes in the country. If you’re more than 65 years of age and make more than R14 217, you must pay tax in South Africa.

People older than 75 must earn R165 689 to become liable to pay tax. Anyone earning less than R95 750 is not liable. As mentioned, the SARS revises the tax rates according to the income and age of the people for paying taxes.

How to Determine Income for Tax?

If you’re confused about what part of your income makes you liable for paying tax, refer to the points below.

  • Your monthly salary, daily wages, or allowances are the common sources that make you tax-liable.
  • If you’ve invested in a business and get profit that’s more than R237 100, your income will be taxable.
  • The rental income, capital gains, and even the pension are taxable if it is more than the stated amount.
Also Check:  Civil Engineering Salary in South Africa in Rands

A brief article explaining the minimum salary to pay tax in South Africa is written so people can know about the rates and tax deductions. The SARS determines the rates according to the income, and everyone falling into the category is liable to pay tax. I hope the information helped determine your tax slab according to your monthly income.

Article Modified on October 28, 2023. The data in this article is written and collected by multiple authors. Learn how we research on About Us.