2015 Income Tax Table and Tax Brackets


On 26 February 2014 the 2015 Income Tax Tables was released to the public by the Minister of Finance Pravin Gordon during his budget speech at Parliament.


The 2015 tax year runs from 1 March 2014 to 28 February 2015. If you were looking for a different tax year go back to the list on the Income Tax Table page were you will find a link to the correct tax year.


Below you will find the 2015 Income Tax Table, after that we give you some extra information that you need to consider when using the tax tables.

We also quickly discuss the national budget delivered by Finance Minister Pravin Gordon and right after that we compare the 2014 and 2015 income tax tables and show you the tax savings between the two years.

To end off there are 2 quick examples showing you how to use the income tax table to calculate the amount of tax that you should pay. 





2015 Income Tax Table


Taxable Income

Rate of Tax

R0 to R174,550

18% of each R1

R174,551 to R272,700

R31,419 + 25% of each Rand above R174,550

R272,701 to R377,450 

R55,975 + 30% of each Rand above R272,700

R377,451 to R528,000

R87,382 + 35% of each Rand above R377,450

R528,001 to R673,100

R140,074 + 38% of each Rand above R528,000

R673,101 and above

R195,212 + 40% of each Rand above R673,100



2015 Income Tax Rebates


Rebate

Amount

Primary Rebate - All Natural Persons, Special Trusts, Insolvent and Deceased Estates up to 65 Years of Age


R12,726

Secondary Rebate - All Natural Persons, Special Trusts, Insolvent and Deceased Estates between 65 and 75 years of Age (In Addition to Primary Rebate)


R7,110

Tertiary Rebate - All Natural Persons, Special Trusts, Insolvent and Deceased Estates 75 years of Age and older (In Addition to Primary & Secondary Rebate)


R2,367



2015 Tax Thresholds


Tax Threshold

Amount

All Natural Persons, Special Trusts, Insolvent and Deceased Estates up to 65 Years of Age

R70,700

All Natural Persons, Special Trusts, Insolvent and Deceased Estates between 65 and 75 years of Age

R110,200

All Natural Persons, Special Trusts, Insolvent and Deceased Estates 75 years of Age and older

R123,350


Additional Information and Definitions.


Here are some additional information and definitions that you need to consider when you are using the 2015 Income tax table.

If you have a registered company you will be taxed at the Corporate tax rate and not at the rates above. Individuals carrying out a trade or business in their own name or partners in a partnership are classified as natural persons and not companies or legal entities.


The Tax brackets above are only used for the taxable income of Natural persons, Special trusts and Insolvent and deceased estates.

Here are some Definitions that you might need:

A Natural person is an individuals, sole proprietors and partners in a partnership.

A Special trust is a trust that is created for the sole purpose to benefit a disabled person or a testamentary trust that is created for the benefit of minor children.

Taxable income is your total income after allowable deductions like medical expenses, Pension Fund Contributions, donations to some Public Benefit organisations(PBO's), etc. It is also after some other exemptions like interest and foreign dividend exemption. 

Although Lump sum benefits from a provident, pension or provident fund do fall under Taxable income they are taxed at different rates and subject to an exclusion.




National budget speech.


Pravin Gordon surely did not have an easy job over the past 5 years. Being a finance minister during a world wide recession - or economic earthquake as he referred to it - is not an easy job. He and his team did do a very good job and although there is still a budget deficit they have by creating incentives for business and employers managed to win back all the jobs that were lost during the recession - in the range of 1.3 Million. There is still a long road ahead and a lot that can be improved.

Being an election year there were no major shocks or changes. What he did do however was give tax relief to households to the value of R9.3 Billion compared to 2014. Most of the tax saving will be going to taxpayers earning less than R250,000 per year.

He also addressed corruption and government spending during the 90 minute speech as well as the successes they have made on the national development plan and the targets they still need to reach.



Tax Savings on the 2015 Income Tax table compared to 2014 Tax Tables.

The tax thresholds for the 2015 tax year was increased from R67,111 in 2014 to R70,700 for tax payers younger than 65.

For taxpayers between 65 and 75 the threshold has increased from R104,611 to R110,200.

The total tax rebate for taxpayers older than 75 is now R22,203 and the tax threshold R123,350 up from R117,111 during the 2014 tax year.


If you compare the Tax Tables for the 2014 year with the 2015 income tax table as above you will see that if your income remained the same you would have paid a little bit less tax. They do this to compensate for the effects of inflation. Unfortunately for those that fall into the higher tax brackets the saving is much lower than the yearly inflation.



This is how much people will save on their taxes during 2015:

If you earn R10,000 per month you will pay R53.83 less tax per month during 2015 a saving of 6.7%

Taxpayers earning R20,000 per month will save R106.04 per month or 3.5%

Taxpayers earning R50,000 per month will save R312.40 every month on tax but that only works out at 2.3% and well below inflation. 


These savings would be for people below 65 years of age. If you are above 65 you can expect the tax saving to be a bit little more.

Usually the saving is larger for older people and people in lower tax brackets. This is one way that they use to move the tax burden from lower income to higher income households.

If you like many other tax payers did not get an increase this year than you too are actually worse off during 2015 if you consider the effects of inflation. Just one look at the petrol price which increased with 14% between February 2013 and February 2014 will tell you the same thing.


Income Tax Quote: John Holmes If the lord loves the Cheerful giver...




How to use the 2015 Income Tax Table?


Here are 2 quick examples of how to calculate your tax using the tax tables above for the 2015 tax year. 


Example 1:

If you are 40 years old and have a Taxable income of R350,000 for the 2015 tax year. The you would calculate your tax payable as follows.

First look at the 2015 Tax Tables and see in which tax bracket you will fall.

For the 2015 year you will fall in the 30% tax bracket.

Calculate how much you earn more than the upper limit of the previous tax bracket which is R272,700

Then do the math and remember to use your age to see what tax rebate you qualify for.

The Calculation is as follows:

R350,000 - R272,700 = R77,300

R77,300 x 30% = R23,190.00

R23,190 + R55,975 = R79,165

R79,165 - R12,726 (Primary Rebate only) = R66,439

So, for the 2015 tax year you would have to pay R66,439 in tax. 

Example 2:

If you are 75 years old and have a Taxable income of R550,000 for the tax year ending on 28 February 2015 then you can calculate the tax payable as follows:

R550,000 - R528,000 = R22,000

R22,000 x 38% = R8,360

R8,360 + R140,074 = R148,434

R148,434 - R22,203(Primary, Secondary & Tertiary Rebates) = R126,231

The total tax payable by a 75 year old earning R550,000 in the 2015 tax year would thus be R126,231



Use one of our Income Tax Calculators if you don't feel like doing the math yourself or if you want to double check your own calculation.


Go back up to the 2015 Income Tax Table to see in which bracket you fall.


› 2015 Income Tax Table

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