What Is The Tax Threshold In South Africa 2024?

By Dave Nyam •  Updated: 10/03/24 •  5 min read

Understanding the tax threshold in South Africa for 2024 is an integral part of financial planning. With the rising cost of living, it’s crucial to know how tax-free income is in South Africa and the new tax brackets for this year.

- ADVERTISEMENT -

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 in South Africa in 2024.

What Is The Tax Threshold In South Africa 2024?

The tax threshold in South Africa for the 2022/23 tax year is the income you can receive before you are required to pay tax. This threshold is set by the South African Revenue Service (SARS) each year and is used to determine the amount of taxable income. The tax threshold for 2024 was R87 300 for individuals under 65 years old and R135 150 for those 65 and over.

For the 2024 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?

South Africa’s tax-free threshold for 2022/23 (from 1st March 2022 to 28th February 2024) is R91 250. This limit means that individuals earning a gross income of R91 250 or less in this period will not be liable to pay any income tax.

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 New Tax Brackets For 2024?

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 2024 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 rate of tax 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.

- ADVERTISEMENT -

Keep Reading

How to Avoid Donations Tax In South Africa

How to Avoid Donations Tax In South Africa

By the end of this guide, you'll be equipped with valuable knowledge to navigate the South African donations tax landscape effectively.

What Does a Negative Amount on a Tax Return Mean?

What Does a Negative Amount on a Tax Return Mean?

What Does a Negative Amount on a Tax Return Mean? This post explains everything you want to know about negative and positive tax returns. 

How to Change SARS eFiling Default Primary User

How to Change SARS eFiling Default Primary User

Who Qualifies for Tax Returns in South Africa?

Who Qualifies for Tax Returns in South Africa?

Not everyone qualifies for tax returns. This article explains everything you want to know about tax returns. 

How to Remove a User From SARS eFiling

How to Remove a User From SARS eFiling

Learn how to remove a user from your SARS eFiling account in just a few easy steps. Keep your tax information secure and control who has access to your account.

How to Claim Medical Expenses From SARS

How to Claim Medical Expenses From SARS

In this article, we’ll discuss how to claim medical expenses on your tax return from SARS, including which medical expenses you can claim

Difference Between Input and Output Tax in South Africa

Difference Between Input and Output Tax in South Africa

he difference between these two is the VAT paid to the tax authorities. Read on to learn the difference between input and output tax in South Africa. 

How to Get an Override Code From SARS

How to Get an Override Code From SARS

How Do I Get an Override Code From SARS. Check out the measures you can take to get an override code from SARS.

How to File Tax Return On eFiling 2024?

How to File Tax Return On eFiling 2024?

How to File Tax Return On eFiling. This article explores how to file your tax return using SAR's online eFiling system.

What Expenses Are Tax Deductible In South Africa?

What Expenses Are Tax Deductible In South Africa?

What expenses are tax deductible in South Afric. Read on to learn the expenses that are tax deductible in South Africa.   

Reasons You Still Need to File Your Tax Return 

Reasons You Still Need to File Your Tax Return 

Reasons You Still Need to File Your Tax Return. Here are some good reasons why you should file your tax return

How to Change Portfolio Type on eFiling

How to Change Portfolio Type on eFiling

Here’s everything you need to know on how to manage your portfolios of eFiling. To change your portfolio type on eFiling, here’s what you to do.

What Is SARS IT88?

What Is SARS IT88?

If you owe money for previous taxes, SARS will issue your employer a document known as the IT88. Read on to learn what SARS IT88 is.

How to Get A Tax Compliance Status Pin

How to Get A Tax Compliance Status Pin

The following article gives a comprehensive guide on how to get a Tax Compliance Status Pin

How to Get a Tax Number in South Africa

How to Get a Tax Number in South Africa

Getting a tax number in South Africa is easiest when done through the eFiling portal. As part of the sign up process, you will be asked if you have it