What is the definition of tax threshold?

 

The tax threshold is the amount of income below which you do not pay any income tax. These thresholds are also determined by the age of the taxpayer and change by tax year. If your annual income is above this amount, you must pay income tax, and if you are permanently employed, your employer will deduct your tax from your salary or wages in the form of PAYE (pay as you earn).

Please note that if the income amount is below the income threshold it is still very important to submit your tax returns. 

Tax Thresholds:

Taxpayer age:                      2023                    2022

Under 65:                         R91 250              R 87 300

65 and older:                   R141 250            R 135 150

75 and older:                   R157 900            R 151 100

As soon as you exceed the above-mentioned amounts you will be taxed according to the SARS tax tables.

The 2022 individual tax table looks as follow: (1 March 2021 - 28 February 2022)

Taxable income (R)         ​Rates of tax (R)

1 – 216 200                      18% of taxable income

216 200 – 337 800          38 916 + 26% of taxable income above 216 200

337 801 – 467 500          70 532 + 31% of taxable income above 337 800

467 501 – 613 600          110 739 + 36% of taxable income above 467 500

613 601 – 782 200          163 335 + 39% of taxable income above 613 600

782 201 – 1 656 600       229 089 + 41% of taxable income above 782 200

1 656 601 and above      587 593 + 45% of taxable income above 1 656 600