Methodology - South Africa (2026/27)

Educational model for the 2026/27 tax year (1 March 2026 - 28 February 2027) - not SARS PAYE deduction tables, not an assessment, not tax advice.

Employee (PAYE)

Personal income tax 2026/27 (Budget 2026 adjusted the brackets upward by about 3.4%): 18% to R245,100; 26% to R383,100; 31% to R530,200; 36% to R695,800; 39% to R887,000; 41% to R1,878,600; 45% above R1,878,600.
Age-based rebates 2026/27: primary R17,820 (everyone), secondary R9,765 (age 65+), tertiary R3,249 (age 75+). The rebates create the tax thresholds: R99,000 (under 65), R153,250 (65-74), R171,300 (75+). Choose your age band in the form.
Medical scheme fees tax credit 2026/27 (optional input): R376 per month each for the first two persons covered by the scheme (you and the first dependant), R254 per month for each additional dependant. Non-refundable - it reduces income tax only.
UIF (Unemployment Insurance Fund): 1% employee plus 1% employer, on remuneration capped at R17,712 per month, so each side pays at most R177.12 per month. The employee 1% is deducted from pay; the employer 1% is part of the employer cost.
SDL (Skills Development Levy): 1% of payroll, employer only - shown in the employer-cost view. Employers with annual payroll under R500,000 are exempt; the exemption is not modelled.
Income tax is national only - there is no provincial income tax, so there is no region selector.
Out of scope: fringe benefits, the retirement fund contribution deduction (section 11F), the additional medical expenses tax credit, the Employment Tax Incentive (ETI), COIDA, non-resident rules and the fine print of the UIF remuneration definition (gross pay is used as the UIF base).

Business profit = revenue - expenses, taxed at the same 2026/27 individual brackets, age-based rebates and medical scheme fees tax credit as employment income.
Provisional taxpayer: income tax is paid in two compulsory provisional payments per year (by the end of August and the end of February), with an optional third top-up payment after year end. Payment timing is not modelled; the calculator shows the annual liability.
UIF is generally not applicable to a true independent contractor (no employer-employee relationship) and SDL does not apply to your own drawings, so neither is charged in this mode.
Out of scope: VAT (compulsory registration above R1,000,000 turnover in 12 months), the turnover tax regime for micro businesses, the retirement annuity deduction (section 11F), home office and capital allowances, provisional-payment penalties, and the employees'-tax tests for deemed employees and labour brokers.