New Tax Tables For 2017: This Is How Much You Will Pay

New tax tables for 2017: this is how much you will pay

Following the announcement of new tax changes for the 2017/18 financial year by finance minister Pravin Gordhan, the country’s tax tables have been updated.

One of the biggest changes announced by the finance minister is the introduction of a new tax bracket, aimed at the country’s wealthy.

South Africans who earn more than R1.5 million a year will form part of a new tax bracket which will be taxed at 45%, on top of limited bracket-creep relief for existing tax brackets.

Together these changes are expected to raise and additional R16.5 billion in tax revenue, which will cover a large bulk of the R28 billion shortfall. The other R11.5 billion will come form other sources, Gordhan said.

These other sources include:

  • An increase in the dividend withholding tax rate from 15% to 20%, to raise R6.8 billion;
  • A 30 cent per litre increase in the general fuel levy and a 9 cent per litre in the road accident levy;
  • An increase in the excise duties of alcohol and tobacco – the so-called ‘sin tax’ – of between 6% and 10%.

This is how the new tax tables look:

Taxable income Tax rate
Under R189 880 18% of taxable income
R189 881 – R296 540 R34 178 + 26% of taxable income above R189 880
R296 541 – R410 460 R61 910 + 31% of taxable income above R296 540
R410 461 – R555 600 R97 225 + 36% of taxable income above R410 460
R555 601 – R708 310 R149 475 + 39% of taxable income above R555 600
R708 311 – R1 500 000 R209 032 + 41% of taxable income above R708 310
R1 500 001 and above R533 625 + 45%  of taxable income above R1 500 000

These are the updates to the tax rebates and tax thresholds for 2017/18

Rebate Amount
Primary R13 635
Secondary (persons 65 and older) R7 479
Tertiary (persons 75 and older) R2 493
Age Threshold
Below age 65 R75 750
Age 65 to below 75 R117 300
Age 75 and older R131 150

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