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Definition

The tax bracket which individuals in South Africa with the highest incomes pay. In the tax year which ends on 28th February 2024, the marginal tax bracket for individuals resident in South Africa is 45% on all income above R1.817 million per annum - which is more than R151000 per month. The marginal rate was increased to 45% from 41% with effect from 1 March 2017. If you are declared to be a "share dealer" by the Receiver of Revenue then this is the rate of tax you will have to pay on any capital gain that you make on shares. The way to avoid being declared a share dealer is to hold your shares for at least three years. Then you will only have to pay normal individual capital gains tax which works out to 18%. The second tax bracket is from R857 000 to R1,817m and the rate there is 41%. Usually, every year the tax brackets are adjusted for the effect of inflation so as to avoid "bracket creep".

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