SARS & Tax
Tax threshold
The annual earnings below which no PAYE is payable — R99,000 for under-65s in 2026/27.
Full definition
The tax threshold is the point at which a taxpayer's income tax equals the primary rebate, meaning no PAYE is due. For 2026/27 it sits at R99,000 (under 65), R153,250 (65–74) and R171,300 (75+). Employees earning below this receive an IT3(a) instead of an IRP5.
See also
Primary rebate
A fixed annual amount SARS subtracts from every individual's PAYE — R17,820 for the 2026/27 tax year.
PAYE
Pay-As-You-Earn is the monthly income tax an employer withholds from each employee's salary and pays over to SARS.
IRP5
The annual tax certificate SARS requires an employer to issue to every employee whose earnings were taxable.
IT3(a)
The SARS certificate issued in place of an IRP5 when an employee had no PAYE deducted.
Automate Tax threshold in your payroll
Payroll Africa handles Tax threshold calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.
Browse the full South African payroll glossary — 55 terms explained.