How much tax you’ll pay in 2024

Finance Minister Enoch Godongwana revealed the new tax brackets for personal income taxpayers in his 2024 Budget Speech today.

This year’s budget contains tax measures that will raise R15 billion in 2024/25 to “alleviate immediate fiscal pressure and support faster debt stabilisation”. 

Godongwana said revenue is mostly raised through personal income tax by not adjusting the tax brackets, rebates and medical tax credits for inflation. 

This is a phenomenon called “bracket creep”, whereby inflation pushes some taxpayers into higher tax brackets, making them pay more tax and thus resulting in greater revenue without hiking rates. 

With tax brackets not being adjusted for inflation, South Africans who received a salary increase this year will end up paying more tax or even being pushed into a higher tax bracket.

The table below shows the personal income tax rates for 2024/25, as well as the rebates and thresholds.

This year, no adjustment to personal income tax will be made, raising additional revenue of R16.3 billion. 

As a result, the annual tax-free threshold for a person under the age of 65 will remain at R95,750 from 1 March 2024. 

In addition, medical tax credits will remain at R364 per month for the first two members and R246 per month for additional members. 

While no major tax hikes to personal income tax, corporate income tax, or value-added tax were implemented, there were increases to smaller taxes.

This includes hiking excise duties on alcohol, which will increase by between 6.7% and 7.2%, while duties on tobacco products will increase by between 4.7% and 8.2%.

Godongwana also announced that South Africa will implement a global minimum corporate tax effective 1 September 2024.

This new tax will see multinational companies that generate more than €750 million in annual revenue pay an effective tax rate of at least 15%, regardless of where their profits are located.

“The proposed reform is expected to yield an additional R8 billion in corporate tax revenue in 2026/27,” Godongwana said.

The table below outlines the estimated tax South Africans will pay based on their income.