South Africa taxes its residents on their worldwide income, and getting on a plane doesn't change that. You stay in the South African tax net until you stop being resident, and when you do, SARS treats you as selling your assets on the way out.
This guide covers South African personal tax for people moving to, living in or leaving South Africa in the 2026/27 tax year (1 March 2026 to 28 February 2027, which SARS calls the 2027 tax year): the two residence tests, the R1.25 million foreign employment exemption, the exit charge, income tax rates, freelancing, crypto, UIF and the Remote Work Visitor's Visa.
What's changed: the 2026 Budget (25 February 2026) raised the income tax brackets and rebates for 2026/27, the first increase since 2023/24. It also proposed a higher capital gains tax annual exclusion (R50,000), tax-free savings limit (R46,000) and retirement contribution cap (R430,000). These figures are in the 2026 Rates Bill. The National Treasury published it as a draft for comment (comments closed on 26 June 2026), and it had not been passed into law when we checked on 17 October 2026, so they're Proposed, not law. The Rates and Monetary Amounts and Amendment of Revenue Laws Act 3 of 2026, signed on 31 March 2026, enacted the 2025 Budget instead: it kept the 2025/26 tax scale, with VAT staying at 15%. The R1.25 million foreign employment exemption is unchanged.
📋 South Africa tax at a glance for 2026/27
Topic | Details |
|---|---|
Tax system | Residents pay tax on worldwide income. Non-residents pay tax on South African-source income only |
Tax year | 1 March to the end of February. This guide covers 1 March 2026 to 28 February 2027 |
Income tax rates | 18% to 45%. The 45% rate starts at R1,878,600 on the 2026/27 scale (Proposed, not law) |
All-in on a US$100k salary | About 33.8% (R1.65 million at R16.50 to US$1, single, under 65, including UIF) |
Working abroad | The first R1.25 million of foreign employment income is exempt for residents who meet the 183-day and 60-day tests |
Investments | 20% dividends tax. 40% of capital gains is taxed, so the top effective rate is 18%. Interest exempt up to R23,800 (R34,500 at 65 or over) |
Crypto gains | Normal tax rules: capital gains tax if you invest, income tax if you trade |
Residence at a glance | Getting in: moderate (ordinarily resident, or more than 91 days a year for six years). Leaving: moderate (330 days abroad or a real move, plus capital gains tax on a deemed sale of your assets) |
Double tax treaties | SARS lists 79, including the UK, the US, Germany, the Netherlands, Australia, Mauritius and the UAE |
Working abroad and leaving South Africa
Why do South Africans abroad still pay South African tax? Because residence, not location, decides it. While you're resident, your foreign salary, rent and gains are all taxable here.
Image 1 — leaving doesn't end the tax bill until residence ends
There are two ways to reduce that. The first keeps you resident. Under section 10(1)(o)(ii) of the Income Tax Act, the first R1.25 million of foreign employment income each tax year is exempt if:
Days abroad: you render services outside South Africa for more than 183 full days in any 12-month period
Continuous absence: more than 60 of those days are in one unbroken stretch
Employment: you're an employee. Independent contractors, the self-employed, public sector employees and public office holders can't use it
Income above R1.25 million is taxed on the normal scale, and you claim a credit under section 6quat for foreign tax on it. If you work in a country with no income tax, there's nothing to credit.
The second route is to stop being resident. You tell SARS the date through the RAV01 form on eFiling, with a declaration and supporting documents. From that date, SARS says a deemed disposal for capital gains tax takes place: you're treated as selling your assets at market value. Immovable property in South Africa is excluded, because it stays taxable when you sell it later. After that you pay South African tax only on South African income.
Retirement annuities and preservation funds can only be withdrawn once you've been non-resident for an uninterrupted three years. The old "financial emigration" withdrawal through the Reserve Bank has been abolished.
👉 SARS: foreign employment income exemption
👉 SARS Interpretation Note 16: exemption from income tax for foreign employment income
👉 SARS: cease to be an SA tax resident
👉 SARS: tax directives on ceasing to be resident and the three-year rule
When you become tax resident in South Africa, and how you stop
There are two tests, and you're resident if you meet either one.
Ordinarily resident: South Africa is your real home, the place you'd naturally return to after travelling. There's no day count, so if you move to South Africa for good you can be resident from the start.
Physical presence test: for people who aren't ordinarily resident, you're resident if you spend more than 91 days in South Africa in the current tax year, more than 91 days in each of the five tax years before it, and more than 915 days in total across those five years.
The physical presence test can't catch you until your sixth year, and then you're resident from 1 March of that year. You stop being resident under it when you spend at least 330 full days in a row outside South Africa, and residence then ends on the day you left.
Ordinary residence is harder to shake off, because it depends on your intentions and ties, not days. Your family, home and belongings all count. You stop when you genuinely move your home abroad, and the date you give SARS is the date the exit charge applies.
👉 SARS Interpretation Note 4: the physical presence test
Income tax rates for 2026/27
Salaries, business profits, rent, interest and the taxable part of capital gains are added together and taxed on one scale. Rebates are then taken off the tax.
South Africa income tax rates for 2026/27
Taxable income | Tax |
|---|---|
Up to R245,100 | 18% |
R245,101 to R383,100 | R44,118 + 26% above R245,100 |
R383,101 to R530,200 | R79,998 + 31% above R383,100 |
R530,201 to R695,800 | R125,599 + 36% above R530,200 |
R695,801 to R887,000 | R185,215 + 39% above R695,800 |
R887,001 to R1,878,600 | R259,783 + 41% above R887,000 |
Over R1,878,600 | R666,339 + 45% above R1,878,600 |
Source: SARS rates of tax for individuals, 2027 tax year, and the 2026 draft Rates Bill. Proposed, not law: until the Bill is passed, the 2025/26 scale (45% above R1,817,000, primary rebate R17,235) is the one in the Act.
The 2026/27 rebates are R17,820 (primary), R9,765 (65 and over) and R3,249 (75 and over). That means you pay no tax on income up to R99,000 if you're under 65, R153,250 from 65 and R171,300 from 75.
👉 SARS: rates of tax for individuals, rebates and thresholds
👉 SARS: draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2026
👉 SARS: amendment Acts enacted in 2025 and 2026
Worked example
You're single, under 65 and resident, and you work for a South African employer for the whole 2026/27 year, earning R1.65 million (about US$100k at R16.50 to the dollar).
Income tax is R259,783 plus 41% of the R763,000 above R887,000, which is R572,613. Take off the R17,820 primary rebate and you pay R554,793.
UIF at 1% is capped at R177.12 a month, or R2,125 for the year.
Your all-in bill is about R556,918, or 33.8% of your salary. On the 2025/26 scale still in the Act, it would be about R560,910 (34.0%). Your employer deducts the tax monthly through PAYE.
Freelancing in South Africa
Self-employed profits are taxed on the same scale as salaries, after business expenses. You register as a provisional taxpayer and pay tax in two instalments during the year, with an optional top-up payment after it ends. There's no UIF or other social security contribution for the self-employed. On US$100k of profit (R1.65 million), that's R554,793 of tax: about 33.6%.
Turnover tax is a simpler regime for micro businesses that replaces income tax, VAT and provisional tax. SARS says the turnover limit rises from R1 million to R2.3 million from 2026, with no tax on the first R600,000 (the higher limit and the R600,000 tax-free band are in the 2026 Rates Bill, so they're Proposed, not law). It isn't open to most freelancers: an individual doesn't qualify if more than 20% of total receipts come from professional services.
👉 SARS: turnover tax for micro businesses
👉 SARS: administration of turnover tax, including the professional services test
Crypto, investments and pensions
Is crypto taxed in South Africa? Yes. SARS says normal income tax rules apply to crypto assets. Whether a gain is capital or income depends on the facts and on case law: if you buy to hold, it's a capital gain; if you trade or mine, it's likely to be income taxed at up to 45%. You declare it in the tax year it arises.
Capital gains: 40% of your net gain for the year is added to your taxable income, so the most you pay is 18%. The first R50,000 of gains is exempt each year (Proposed, not law; R40,000 in the Act), and the exclusion on your main home rises to R3 million (Proposed, not law; R2 million in the Act).
Dividends: South African dividends carry 20% dividends tax, withheld by the company, and are then exempt from income tax. Foreign dividends are taxed at an effective rate of no more than 20%.
Interest: the first R23,800 a year is exempt if you're under 65, and R34,500 if you're 65 or over.
Tax-free savings: you can put R46,000 a year into a tax-free investment account (Proposed, not law; R36,000 in the Act).
Foreign pensions are generous. A pension or lump sum from abroad for work you did outside South Africa is exempt, and so are amounts from another country's social security system. If you worked partly in South Africa, the exempt part is worked out on time spent working abroad.
There's no wealth tax, but there is estate duty. It's charged at 20% of the dutiable estate up to R30 million and 25% above that, after a R3.5 million deduction. If you're ordinarily resident when you die, it covers your worldwide property; non-residents pay only on South African property. Donations tax is also 20% (25% above R30 million), with the first R150,000 a year exempt (Proposed, not law; R100,000 in the Act).
👉 SARS: capital gains tax rates and the annual exclusion
👉 SARS: ABC of capital gains tax for individuals, including the 40% inclusion rate
👉 National Treasury and SARS: Budget 2026 tax guide (dividends, interest, estate duty)
👉 SARS Interpretation Note 104: exemption of foreign pensions
Social security
The main payroll contribution in South Africa is the Unemployment Insurance Fund (UIF), and it's small.
UIF: employees pay 1% of pay and employers 1%, on earnings up to R17,712 a month. The most you pay is R177.12 a month.
Skills development levy: employers pay 1% of payroll. It isn't deducted from your pay.
Self-employed: no UIF and no other compulsory contribution.
Contributions to retirement funds are deductible up to 27.5% of your remuneration or taxable income, capped at R430,000 a year (Proposed, not law; R350,000 in the Act).
👉 SARS: Unemployment Insurance Fund contributions and the earnings ceiling
Double tax treaties
Does South Africa have double tax treaties? Yes. SARS lists 79 double taxation agreements: 23 with African countries, including Mauritius, Kenya, Botswana, Namibia and Nigeria, and 56 with the rest of the world, including the UK, the United States, Germany, the Netherlands, Portugal, Australia, Canada, India, China and the UAE.
A treaty can decide which country may tax a particular type of income, and stops you paying full tax twice on it. Where both countries tax, South Africa gives a credit for foreign tax under section 6quat.
👉 SARS: double taxation agreements with the rest of the world
👉 SARS: double taxation agreements with African countries
The Remote Work Visitor's Visa
South Africa's digital nomad route is the Remote Work Visitor's Visa, for people who work for a foreign employer. Home Affairs' requirements, published on 9 October 2024:
a gross salary of at least R650,796 a year (about US$3,300 a month), with three months of bank statements
an employment contract with a foreign employer
stays of more than three months and up to three years
you can't take up employment in South Africa
There's no tax exemption for visa holders. Home Affairs says you must register with SARS if you're resident in a treaty country and stay more than 183 days in any 12 months, or at once if you're resident in a country with no treaty. The physical presence test won't make you resident in three years, but you can still become ordinarily resident if South Africa becomes your home.
👉 Department of Home Affairs: Remote Work Visitor's Visa requirements
Who is South Africa good for?
How does South Africa compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026/27 rules (including the proposed Budget figures) and the all-in cost including UIF. We convert at R16.50 to US$1, close to the Federal Reserve H.10 rate of R16.53 on 9 October 2026.
☑️ Who is South Africa good for? Tax ratings for expats in 2026/27
Expat profile | South Africa rating | Why |
|---|---|---|
Employees | Poor | About 33.8% all-in on a US$100k salary (R1.65 million) for a single employee under 65: income tax of R554,793 on the 2026/27 scale, plus R2,125 of UIF. There's no regime for new arrivals. The 2025/26 scale still in law gives 34.0%. |
Freelancers (self-employed) | Poor | About 33.6% on US$100k of profit: the same scale as salaries, paid through provisional tax. There are no social security contributions for the self-employed. Turnover tax is closed to most professionals. |
Retirees | Good | About 6.7% on a US$40k foreign pension plus US$20k of dividends. A foreign pension for work you did outside South Africa, and a foreign social security pension, are exempt. The dividends carry 20% dividends tax. Estate duty of 20% stops this being Excellent. |
Crypto gains | Good | About 8.9% on a US$100k gain if SARS accepts it's capital: 40% of the gain above the annual exclusion is taxed at your marginal rate, so the most you pay is 18%. If you trade, the whole gain is income and taxed at up to 45%. |
Investment income | Good | About 12% on a US$1m portfolio: 20% dividends tax on R660,000 of South African dividends, plus capital gains tax on R660,000 of gains. Foreign dividends are taxed at no more than 20% too. There's no wealth tax. |
Digital nomad visa | Good | The Remote Work Visitor's Visa needs a gross salary of at least R650,796 a year (about US$3,300 a month) from a foreign employer and lasts up to three years. There's no tax exemption, and you're taxed normally if you become resident. |
Filing and deadlines
Many employees are auto-assessed by SARS and don't need to file if they agree with the result.
2025/26 returns (filed in 2026): auto-assessments went out from 1 to 12 July 2026. The deadline is 23 October 2026 for non-provisional taxpayers and 22 January 2027 for provisional taxpayers.
Provisional tax: the first payment is due by the end of August and the second by the end of February, with a voluntary top-up after the year ends. For 2025/26, the dates were 29 August 2025, 27 February 2026 and 30 September 2026.
If you cease to be resident, the tax year ends for you on the day before, and you file a return for that shorter period.
👉 SARS: 2026 filing season dates
👉 SARS: guide on income tax and the individual 2025/26, including provisional tax dates
👉 SARS: Taxation in South Africa 2026
Frequently asked questions
Do I pay South African tax if I work abroad?
Yes, if you're still resident. South Africa taxes residents on worldwide income. Employees who spend more than 183 days abroad in any 12 months, including more than 60 days in a row, can exempt the first R1.25 million of foreign employment income. The rest is taxed with a credit for foreign tax.
How do I stop being a South African tax resident?
If you're resident under the physical presence test, spend at least 330 full days in a row outside South Africa. If South Africa is your real home, you have to make a genuine permanent move. Tell SARS the date on the RAV01 form. A deemed disposal of your assets for capital gains tax applies, but South African immovable property is excluded.
What are the income tax rates in South Africa for 2026/27?
Rates run from 18% to 45%. On the 2026 Budget scale, the 45% rate applies above R1,878,600 and the primary rebate is R17,820, so you pay nothing on income up to R99,000 if you're under 65. These figures are Proposed, not law until the 2026 Rates Bill is passed.
Is crypto taxed in South Africa?
Yes. SARS applies normal tax rules. If you hold crypto as an investment, 40% of the gain is taxed at your marginal rate, so the most you pay is 18%. If you trade, the gains are income and taxed at up to 45%.
Are foreign pensions taxed in South Africa?
A pension or lump sum from abroad for work you did outside South Africa is exempt, and so are payments from another country's social security system. If you worked partly in South Africa, part of the pension is taxable.
Does South Africa have a digital nomad visa?
Yes. The Remote Work Visitor's Visa lets you work for a foreign employer from South Africa for up to three years if you earn at least R650,796 a year. There's no tax exemption, and you may need to register with SARS.
Where to go next
Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
