SARS Tax Calculator

Estimate your South African business taxes instantly. Calculate Income Tax, VAT, PAYE, and Small Business Corporation tax for 2026.

About This Calculator

This tax calculator provides estimates based on 2026 South African Revenue Service (SARS) tax brackets and rates. For precise tax planning, consult with a tax professional. All amounts are in South African Rand (ZAR).

Enter Your Details

Your company's taxable profit for the year

Used for VAT calculation (applies if over R1M)

Payroll Information (if applicable)

Available for companies with income under R100,000

Your Tax Estimate

Income Tax

R 117,508

Marginal Rate

31%

Calculated using SARS progressive tax brackets

Total Annual Tax Burden

R 117,508

Effective Tax Rate: 23.5%

Tax Optimization Tips

  • ✓ Keep accurate records of all business expenses
  • ✓ Register for VAT if turnover exceeds R1 million
  • ✓ Explore SBC status if income is below R100,000
  • ✓ Claim all allowable deductions and work from home costs
  • ✓ Consider quarterly provisional tax payments

Important Disclaimer

This calculator provides estimates for educational purposes only and is not official tax advice. Tax rates, brackets, and regulations change annually. Please consult with a registered tax practitioner or contact the South African Revenue Service (SARS) for accurate, personalized tax guidance. Hersortium Consulting can help connect you with tax experts for professional advice.

Understanding South African Business Taxes

Small businesses in South Africa face multiple tax obligations. Here's what you need to know:

Income Tax

Companies pay tax on their taxable profit using progressive tax brackets. The more you earn, the higher your marginal tax rate.

2026 Brackets:

  • 0 - R237,100: 18%
  • R237,100 - R370,500: 26%
  • R370,500+: up to 45%

Value Added Tax (VAT)

VAT is a 15% tax on most goods and services. Businesses with annual revenue above R1 million must register for VAT.

Key Points:

  • Standard rate: 15%
  • Mandatory above R1M turnover
  • Quarterly VAT returns required

PAYE (Employee Tax)

PAYE is withheld from employee salaries and paid to SARS monthly. As employer, you manage and remit this tax.

Employer Responsibilities:

  • Monthly PAYE payments to SARS
  • Annual tax certificates (IRP501)
  • Accurate salary records

Small Business Corporation (SBC)

Qualifying small businesses may use a 7% flat tax rate instead of progressive brackets, offering significant tax savings.

Eligibility:

  • Taxable income ≤ R100,000
  • 7% flat tax rate
  • Significant savings potential

Frequently Asked Questions

When do I need to register for VAT?

You must register for VAT if your annual turnover exceeds R1 million. You can also voluntarily register if below this threshold.

How often do I submit tax returns?

Companies submit annual income tax returns. If registered for VAT, you'll have monthly or quarterly VAT returns depending on your status.

What deductions can I claim?

Allowable business expenses reduce your taxable income. Common deductions include office rent, employee salaries, utilities, and work-from-home costs. Keep records of all expenses.

What is provisional tax?

Provisional tax is an advance payment of income tax, paid quarterly. It's calculated based on your estimated annual profit and helps spread tax payments throughout the year.

Should I use this calculator instead of consulting a tax professional?

This calculator provides estimates for planning purposes only. We strongly recommend consulting a registered tax practitioner for accurate, personalized tax advice and to optimize your tax position.

Need Professional Tax Advice?

While this calculator provides estimates, a tax expert can optimize your tax strategy and ensure full compliance with SARS regulations.

Consult Our Tax Experts