This is how much tax you will pay in 2025 based on what you earn

Finance Minister Enoch Godongwana has tabled the revised 2025 budget, which has some bad news for income taxpayers in South Africa.

After initially planning marginal adjustments to income tax brackets in the original budget in February, the National Treasury has now opted for no adjustments in the revised budget.

This means that taxpayers will fall prey to inflationary bracket creep.

Any South Africans who received an inflation-based or higher salary hike in 2025 may now find themselves in a higher tax bracket and paying more taxes.

This was one of the major trade-offs Godongwana had to implement to cover for a heavily reduced VAT hike in the country.

The minister initially sought to hike VAT by two percentage points to 17% in 2025, but this was shot down by partners within the Government of National Unity.

After careful consideration, the government has still opted to increase VAT, but now only by 0.5%pts in 2025, and further 0.5%pts in 2026.

This will bring VAT to 16% in 2026.

To make up for the ‘lost’ revenue from the move, the government is now proposes no inflationary adjustments to personal income tax brackets, rebates and medical tax credits.

These measures will raise R28 billion in additional revenue in 2025/26 and R14.5 billion in 2026/27.

The personal income tax proposals are effective from 1 March 2025 and are expected to raise revenue of R19.5 billion, alone.

“The additional revenue will be used to increase funding for key public services, including education, health and commuter rail,” the Treasury said.

“The impact of the tax measures on the most vulnerable households will be cushioned by real increases in social grants, an expansion of the list of zero-rated foods and continued fuel levy relief.”

Over the medium term, new spending pressures will need to be addressed through expenditure reductions, reprioritisations or additional revenue measures, Treasury said.

The tax brackets for 2025 are as follows: