When you will earn the most money in South Africa

South Africans earn the highest salaries from 45 to 54, with this cohort having an average taxable income of R472,326. 

SARS revealed this in its annual Tax Statistics report for 2024, which outlines the tax collection and tax return information for the previous tax year. 

It also compares this data to the past four tax years to 2020 to uncover trends regarding how much South Africans earn, where the country’s taxpayers live, and who these taxpayers are. 

The report is released in conjunction with the National Treasury as it is intended to accompany various reports to create an overall picture of the country’s finances and economy. 

In the most recent financial year, SARS collected R2.2 trillion in gross tax revenue, an increase of 4.2% from the previous year. After various refunds were applied, the total revenue for the year was R1.74 trillion. 

Apart from breaking down the sources of tax revenue between personal income tax (PIT), corporate income tax, VAT, and smaller sources, the publication outlined the age of South Africa’s taxpayers. 

SARS does this by breaking down its taxpayers into ten-year cohorts, outlining the number of taxpayers in each cohort and their taxable income. This can then be used to determine which age group earns the most in terms of income. 

The national average tax assessed per individual increased from R45,702 in the 2014 tax year to R75,240 in the 2023 tax year. 

This is an increase in tax assessed of 64.6%, reflecting a compound annual increase of 5.7%. 

However, this number is skewed by the significant number of individuals registered to pay tax in South Africa but do not earn enough to be taxed. 

When they are stripped out, the numbers are far higher. The average tax assessed per individual rose from R66,940 in 2014 to R133,213 in 2023 – an increase of 99%. 

Broken down by age cohorts, South Africans between the ages of 45 and 54 have the highest average taxable income, at R472,326. 

This is when the earning power of South Africans peaks beyond this age cohort. Many start retiring from 55 onwards and thus do not pay income tax.

Interestingly, the data shows a corresponding rise in provisional taxpayers in the 55 to 64 age cohort. This may reflect a transition as many pickup part-time work in retirement or become self-employed. 

The table below shows the breakdown of South Africa’s taxpayers in ten-year age cohorts for the 2023 tax year.