How much can I earn tax-free in South Africa in 2026?

For the 2026 year of assessment you pay no income tax on taxable income up to R95,750 if you are under 65, R148,217 if you are 65 to 74, or R165,689 if you are 75 or older. Above your threshold, only the income over that line is taxed.

Why is the tax threshold higher for pensioners?

Because taxpayers aged 65 and older receive extra rebates, R9,444 more from 65, and another R3,145 from 75. A rebate is subtracted from the tax due, so more of it means more income can be earned before any tax remains. For how this affects filing, see whether pensioners submit a tax return.

Does the threshold mean my whole income is tax-free up to that point?

Up to the threshold, yes, your income tax is nil. Once you go over it, you are not taxed on the whole amount at once. Only the income above the threshold is taxed, and it enters the sliding scale from the bottom, so your effective rate stays well below the bracket rate for a while.

Is the threshold the same as my tax bracket?

No. The bracket is the rate applied to a band of income; the threshold is the income level at which the rebate cancels the tax. They are linked, because the threshold is where the first bracket's 18% charge equals your rebate. For how the bands and rebates fit together, read income tax brackets and rebates explained.

- https://www.sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/

How Much Can You Earn Before You Pay Income Tax in South Africa?

For the 2026 year of assessment (1 March 2025 to 28 February 2026) you pay no income tax if your taxable income is at or below the tax threshold for your age: R95,750 if you are under 65, R148,217 if you are 65 to 74, and R165,689 if you are 75 or older. Earn a rand above your threshold and only that extra slice is taxed, not your whole income.

The threshold is not a separate rule SARS hands out. It falls straight out of the tax rebates, which is why it is higher for older taxpayers. Here is how it works, with the arithmetic.

The three thresholds for 2026

The income level at which tax starts depends only on your age at the end of the year of assessment:

Under 65: R95,750
65 to 74: R148,217
75 and older: R165,689

Below your threshold, your income tax is nil. This is about income tax specifically. Other deductions from your pay, such as UIF, are separate and are not affected by this threshold.

Why the threshold rises with age

Everyone's tax is worked out on the same sliding scale, and then a flat rebate is subtracted. The rebates for 2026 are:

Primary rebate, everyone: R17,235
Secondary rebate, added at 65 to 74: a further R9,444
Tertiary rebate, added at 75 and older: a further R3,145

Because a rebate is a flat subtraction from the tax due, there is an income level at which it wipes out the tax entirely. An older taxpayer gets more rebates, so it takes more income before any tax survives the subtraction. That higher cancellation point is the higher threshold.

Where the threshold comes from

The first band of the 2026 tax table taxes income at 18% up to R237,100. So for anyone whose income sits inside that first band, the tax before rebates is simply 18% of taxable income. The threshold is the income at which that 18% exactly equals the rebate.

For a person under 65:

Tax before rebates on R95,750 = R95,750 x 18% = R17,235
Less the primary rebate of R17,235
Tax payable = R0

That is why R95,750 is the under-65 threshold: at that income the 18% charge and the R17,235 rebate cancel out. For a person aged 65 to 74 the rebates total R17,235 + R9,444 = R26,679, and 18% of the R148,217 threshold is R26,679 to the nearest rand, so tax is again nil. For a person 75 or older the rebates total R29,824, which 18% of the R165,689 threshold covers the same way. SARS rounds each threshold to the nearest rand, so the two sides cancel give or take a few cents.

A worked example just above the threshold

Take Thabo, who is 40 and has a taxable income of R120,000 for the 2026 year of assessment. He is above the R95,750 threshold, so some tax is due, but only on the way his income runs through the table.

His R120,000 is inside the first band, taxed at 18%: R120,000 x 18% = R21,600
Less the primary rebate: R21,600 - R17,235 = R4,365

His income tax for the year is R4,365, which is about R364 a month in PAYE. Note what that means: on R120,000 his effective tax rate is R4,365 divided by R120,000, or 3.6%, not 18%. The threshold and the rebate keep the early rand lightly taxed. You can see the full computation for any salary with the income tax calculator.

The tax threshold is not the filing threshold

Two different thresholds get confused. The tax threshold above is the income level at which you start to owe income tax. Whether you must submit a return is a separate question with its own rules, and you can be below the tax threshold and still need to file, or above it and be excused. If you are unsure, work through the guide on whether you need to submit a tax return.