What Is The Tax Threshold In South Africa?

By Dave Nyam •  Updated: 10/22/26 •  4 min read

Tax thresholds must be matched to their assessment year. The figures below illustrate the historical 2023 tax year, not the current year. For current thresholds and rates, use the SARS table for the relevant assessment year.

This blog post will explore the answers to questions such as the tax-free allowance for 2022/23, the tax-free limit in South Africa, and how much you must earn in SA to pay tax. Read on to find out all the details about the tax threshold

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in South Africa in 2023.

What Is The Tax Threshold In South Africa 2023?

As a historical example, the 2023 tax year ran from 1 March 2022 to 28 February 2023. Its annual income-tax thresholds were R91,250 for individuals under 65, R141,250 for ages 65–74 and R157,900 for ages 75 and older. For current thresholds and rates, use the SARS table for the relevant assessment year.

For the 2023 tax year, the tax threshold has increased to R91 250 for individuals under 65 and R141 250 for those 65 and over.

How Much Income Is Tax-Free In South Africa?

As a historical example, the 2023 tax year ran from 1 March 2022 to 28 February 2023. Its annual income-tax thresholds were R91,250 for individuals under 65, R141,250 for ages 65–74 and R157,900 for ages 75 and older. For current thresholds and rates, use the SARS table for the relevant assessment year.

For individuals earning between R91 250 and R226 000, there is one progressive tax bracket – 18%. For those earning more than R226 000, a top marginal rate of R40 680 plus 26% applies.

What Are The Historical Tax Brackets For 2023?

Income over the tax threshold is subject to progressive income tax rates, with higher-income earners paying higher tax rates. For 2022/23, these tax brackets and their respective rates are as follows:

It is important to note that the tax thresholds and rates discussed here apply only to individuals and do not apply to businesses or other entities. Businesses may be subject to different tax thresholds and rates. It is also important to remember that these thresholds and rates can change at any time, so it is vital to stay up-to-date on the latest changes.

What Is The Tax-Free Allowance For 2022/23?

Tax deductions are available for certain expenses, such as medical costs, disability expenses, or retirement savings.

However, you can claim these deductions if you earn more than the tax-free threshold amount. Also, tax credits are available for certain types of income, such as unemployment or disability benefits.

It is important to note that the tax-free allowance does not impact all types of income. For example, investment income and capital gains are still taxable. Additionally, some people may have to pay a “progressive tax,” which means they have to pay higher taxes on higher incomes.

What Is The Tax-Free Limit In South Africa?

The tax-free limit in South Africa for the 2022/23 tax year is R91 250 for individuals under 65 and R141 250 for those 65 and over. Any income earned above this limit will be subject to income tax.

The rate of taxation depends on your income bracket. For example, if you earn up to R226 000, you’ll pay 18% of your taxable income in taxes.

How Much Must You Earn In SA To Pay Tax?

Taxpayers in South Africa are required to pay taxes on their income if they earn more than the tax threshold. The tax threshold in South Africa for 2023 is R91 250 for individuals under 65 and R141 250 for those 65 and over. This limit means that any income earned over and above R91 250 and  R141 250 will be subject to income tax.

The South African Revenue Service (SARS) uses a progressive income tax system, which means that the more you earn, the higher the tax rate you must pay.

Those earning below the tax threshold are exempt from paying tax as they are considered non-taxpayers. However, it is essential to remember that there are other taxes that all taxpayers must pay regardless of their income, such as Value Added Tax (VAT).

Conclusion

The SA tax system is complex, and the threshold for paying tax can change from year to year. Therefore, knowing the tax threshold for the current financial year is crucial to ensure you are paying what’s necessary.

For the 2022/23 financial year, the tax-free limit is R91 250 for individuals under 65 and R141 250 for those 65 and over. However, any income over this amount will be taxed according to the applicable tax brackets. Therefore, keeping track of the latest tax information is essential.

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