The tax threshold in South Africa is the amount of income that you can earn before you have to pay taxes. It is not a fixed amount and changes from year to year.
There are two different tax thresholds, one, for individuals and one for companies. The individual tax threshold for the 2018/2019 financial year is R250,000. This means that if your taxable income is less than this amount, you will not have to pay any taxes. If your taxable income is greater than this amount, the rate at which you have taxed increases as your income increases.
How is income taxed in South Africa?
South Africa has a progressive tax system, so the higher your taxable income, the higher your tax bracket. Most South Africans earn less than R250 000 per annum. This is why most of them fall into the lowest tax bracket and are taxed at 25%. If you earn more than R250 000 per annum, you are in the second highest tax bracket and will be taxed at 30%. They taxed income over R500 000 per annum at 35%. If you earn more than R1 million per annum, you are in the top tax bracket and will be taxed at 40%.
What is the tax threshold for individual income tax in South Africa?
Individuals earning more than R250 000 per year are liable to pay income tax. The threshold for individual income tax in South Africa is R250 000 per year, which is approximately $16 643.
