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Finance Minister Pravin Gordhan delivered his 2016 Budget on 24 February, and surprised analysts by not hiking the personal income tax rate. Tax rates for companies and VAT were not increased either.
The tables below detail the income tax rates for the year ahead.
Tax thresholds and rebates
| Taxable income | Rates of tax |
| 0 – 188 000 | 18% of taxable income |
| 188 001 – 293 600 | 33 840 + 26% of taxable income above 188 000 |
| 293 601 – 406 400 | 61 296 + 31% of taxable income above 293 600 |
| 406 401 – 550 100 | 96 264 + 36% of taxable income above 406 400 |
| 550 101 – 701 300 | 147 996 + 39% of taxable income above 550 100 |
| 701 301 and above | 206 964 + 41% of taxable income above 701 300 |
Tax Threshold 2016/17
| Under 65 | R75 000 |
| 65 and older | R116 150 |
| 75 and older | R129 850 |
Tax Rebate 2016/17
|
Primary |
R13 500 |
|
Secondary (65 and older) |
R7 407 |
|
Tertiary (75 and older) |
R2 466 |
Altough the proposed tax rates from last week's budget speech has not been legislated yet, they are available in the Downloads Section for the Classic legacy version, PayLiteX/MacPayX. Please login and download the files for your product and use with discretion. Check the tax calculated manually to make sure the...
The UIF ceiling change has been withdrawn and we await further instructions from Department of Finance. LPrep-Draft-2021-07 – Draft Notice on UIF remuneration limit 24 February 2021.pdf Payroll operators, please remember to change the UIF calculation in your payroll to reflect the new ceiling amount that comes into effect from...
The National Minimum Wage Rate will increase from R 20.76 to R 21.69 per hour.[ Domestic wokers to R 19.09] The monthly equivalent for salaried staff will therefore be R 3,759.60 if working an 8 hour day/ 5 day week. Employers please adjust your Employment Tax Incentive Claim criteria calculations and...
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