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Interest income

Local interest has a yearly tax-free amount. Interest above that is added to your income. Banks don't take tax off interest, so it's settled when you file.

Tax on your interestR5,022R23,800 is tax free
  • InterestR40,000
  • Tax-free amount (under 65)R23,800
  • Taxable interestR16,200
  • TaxR5,022
How it works, with your numbers
  1. Tax-free interest: R23,800.
  2. Taxable: R40,000 − R23,800 = R16,200.
  3. Added to your income, it costs R5,022 in tax.
Good to know
  • Interest inside a tax-free savings account doesn't count towards this.
  • If your interest is over the tax-free amount, you may need to register as a provisional taxpayer.

Uses SARS rates for the 2027 tax year. For illustration only. This is a guideline to help you plan, not tax advice: a registered tax practitioner must review and approve the final figures before you file.

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