How much you will be taxed in South Africa in 2024 – based on what you earn

Finance minister Enoch Godongwana has outlined the new tax brackets for personal income taxpayers in his Budget speech 2024 on Wednesday (21 February).

The minister said that the budget proposes tax increases totalling R15 billion for the 2024/25 fiscal year to alleviate “immediate pressures” on the budget.

As part of this, there are no Inflation adjustments to the personal income tax tables and medical tax credits are provided for the year.

This means that medical tax rebates will be the same as 2023 at R364 for members, R364 for the first dependent and R246 for every subsequent dependent.

With tax brackets not being adjusted for inflation, South Africans who got a salary increase this year will end up paying more tax, or even being pushed into a higher tax bracket.

The table below shows the personal income tax rates for 2024/25, as well as the rebates and thresholds.

In addition to no adjustments for the tax brackets, the Treasury will be hiking other taxes to make up the additional revenue.

This includes hiking excise duties on alcohol, which will increase between 6.7% and 7.2%, while duties on tobacco products will increase between 4.7% and 8.2%.

Godongwana also announced that South Africa will implement a global minimum corporate tax effective 1 September 2024, which will see multinationals that earn more than EUR750 million a year pay an effective tax rate of at least 15%, regardless of where its profits are located.

This should add R8 billion to tax revenues, it said.

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