Ten areas in South Africa where people earn the least money

The ten municipalities in South Africa where people earn the least money are mostly located in the country’s Cape provinces, with the poorest being Laingsburg in the Western Cape. 

Municipalities in the Northern Cape dominate the rest of the list, taking up four of the ten spots. 

This was revealed in SARS’ annual Tax Statistics report, which compiles data about how much tax the revenue service collects in South Africa, how it collects that tax, and where it comes from. 

The report is intended to be used with data from the National Treasury to enhance policy decisions and provide a more granular analysis of the local economy. 

Crucially, SARS is able to collect data using taxpayers’ place of residence and not just their registered office, giving a better picture of where the country’s highest and lowest earners live. 

This data can also be used alongside Stats SA’s Census to get a more accurate picture of the distribution of South Africa’s population and demographic trends. 

The National Treasury can then use this data to inform how it distributes money across South Africa’s provinces and municipalities. 

For example, SARS data shows that there has been an increase in the number of taxpayers in the Western Cape over the past year, while the number of taxpayers in KwaZulu Natal has declined. 

In the 2023/24 fiscal year, SARS collected R2.2 trillion in gross tax revenue, 4.2% more than the prior year. After refunds, this equates to R1.74 trillion in tax revenue. 

The vast majority of this tax revenue comes from personal income tax (PIT), followed by corporate income tax, and then VAT. 

SARS PIT collections reveal interesting data about where most of South Africa’s high-income earning population lives. 

Most still live in Gauteng, where the province’s average taxable income per individual reached R416,000 in the last financial year. The Western Cape was second, at R345,000. 

However, it also revealed that the municipalities where South Africans do not earn as much money and thus do not pay as much tax. 

The poorest municipalities are mostly found in the Northern Cape, with the province having four of the ten areas with the lowest average taxable income. 

Two municipalities from the Western Cape feature on the list, and one a piece from the North-West, the Free State, and KwaZulu-Natal.