Here is how much personal income tax you will pay after the Budget

Finance Minister Enoch Godongwana has announced relief to South African taxpayers for the first time in two years by adjusting personal income tax brackets.

This brings an end to two years of “bracket creep”, which happens when tax tables and deduction limits are not adjusted for inflation.

This makes taxpayers pay more, resulting in greater revenue without hiking rates.

South Africa’s personal income tax brackets were last adjusted for inflation in the 2023/24 fiscal year, with the Treasury having relied on bracket creep to cushion its revenue ever since.

This strategy paid off handsomely in the 2025/26 fiscal year, as personal income tax revenue increased as a percentage of total tax revenue.

Despite this, the Treasury said personal income tax collections are projected to fall short of 2025 Budget estimates, which is attributed to subdued private-sector wage growth.

South Africa’s tax-to-GDP ratio increased from 25.1% in 2024/25 to 25.9% in 2025/26, despite the country’s narrow tax base.

The 2026 Budget revealed that the top 13% of individual taxpayers pay over 60% of personal income tax, and nearly half of personal income tax is paid by the 7.7% of taxpayers with taxable income above R1 million per year.

Therefore, in his Budget Speech tabled on Wednesday, 25 February, Godongwana announced measures to “ease the financial burden on households and businesses”.

This included adjusting personal income tax brackets and medical aid tax credits fully in line with inflation, which was placed at 3.4%.

The full Budget Review shows that medical tax credits will increase from R364 to R376 for the first two members, and from R246 to R254 for additional members.

For personal income, those earning between R0 and R99,000 a year fall below the income tax threshold and are, therefore, not subject to income tax.

Those earnings between R99,000 and R150,000 a year fall into the lowest bracket for taxpayers subject to income tax. The highest bracket contains those earning over R1.50 million a year.

The government projects collecting R844.8 billion in personal income tax in the 2026/27 fiscal year.

These brackets can be seen in the table below, followed by a table showing the personal income tax rates and bracket adjustments.