Every year we post the income tax rates for the current tax season. This year there is possibly more reason to take note of the changes as during the recent Budget Speech it was announced that for the first time in 20 years, income tax rates would be increased.
The first increase since 1995 sees personal income tax rise by one percent on annual salaries above R181 900 and the top marginal tax rate pushed up to 41%.
The tables below provide all the details you need to get an idea of the increases across the different tax brackets.
Income Tax Rates for the period 1 MAR 2015 to 29 FEB 2016
| Taxable Income | Rates of Tax |
|---|---|
| R0 – R181 900 | + 18% of each R1 |
| R181 901 – R284 100 | R32 742 + 26% of the amount above R181 900 |
| R284 101 – R393 200 | R59 314 + 31% of the amount above R284 100 |
| R39 3201 – R550 100 | R93 135 + 36% of the amount above R393 200 |
| R550 101 – R701 300 | R149 619 + 39% of the amount above R550 100 |
| R701 301 and above | R208 587 + 41% of the amount above R 701 300 |
Tax Rebates
| Rebate | |
|---|---|
| Primary | R13 257 |
| Secondary (Persons 65 and older) | R7 407 |
| Tertiary (Persons 75 and older) | R2 466 |
Tax Thresholds
| Age | Tax Threshold |
|---|---|
| Below age 65 | R73 650 |
| Age 65 to 75 | R114 800 |
| Age 75 and over | R128 500 |
Comparative Tax Rates
| Rates of Tax | 2014 | 2015 | 2016 |
|---|---|---|---|
| NATURAL PERSONS | |||
| Maximum marginal rate | 40% | 40% | 41% |
| • Reached at a taxable income | 638 600 | 673 100 | 701 300 |
| Minimum rate | 18% | 18% | 18% |
| • Up to taxable income of | 165 500 | 174 550 | 181 900 |
| • CGT inclusion rate | 33.3% | 33.3% | 33.3% |
| COMPANIES AND CC’s | |||
| • Normal tax rate | 28% | 28% | 28% |
| • Dividends Tax | 15% | 15% | 15% |
| • CGT inclusion rate | 66% | 66% | 66% |
| TRUSTS (other than special trusts) | |||
| • Flat rate | 40% | 40% | 41% |
| • CGT inclusion rate | 66.6% | 66.6% | 66.6% |
| SUNDRY | |||
| • Donations Tax | 20% | 20% | 20% |
| • Estate Duty | 20% | 20% | 20% |
| SMALL BUSINESS CORPORATIONS | |||
| Maximum marginal rate | 28% | 28% | 28% |
| • Reached at a taxable income | 550 000 | 550 000 | 550 000 |
| Minimum rate | 0% | 0% | 0% |
| • Up to taxable income of | 67 111 | 70 700 | 73 650 |
| MICRO BUSINESS | |||
| Max Rate of Tax | 6% | 6% | 6% |
| • On Turnover of | 750 000 | 750 000 | 750 000 |
| Minimum Rate | 0% | 0% | 0% |
| • Up to taxable income of | 150 000 | 150 000 | 335 000 |
Tax Tables 2013 – 2015
Each year we publish the income tax rates for your reference. Select from the links below to view our previous blogs covering tax tables:
Free Pocket Tax Guide
All the above information and more is available in a FREE Dirmeik Consulting Pocket Tax Guide that is available to download here: Free Pocket Tax Guide.
Need Assistance?
If you are struggling to make sense of how this applies to your income or need advice or assistance submitting a tax return, call Dirmeik Consulting on 021 421 4444.
