In its current form, Budget 2025 will effectively bring about an increase in personal income tax by not adjusting the tables for tax rates, rebates and credits, while also implementing substantial increases in ‘sin’ taxes and introducing a 0.5% VAT increase on 1 May 2025 and another 0.5% increase effective 1 April 2026.
This selection of official SARS Tax Tables and other useful resources will help clarify your tax position for the new tax year.
Individual taxpayers: Tax tables unchanged since 2023
| INDIVIDUAL TAXES – 2025 | |
| Taxable Income (R) | Rate of Tax (R) |
| 1 – 237 100 | 18% of taxable income |
| 237 101 – 370 500 | 42 678 + 26% of taxable income above 237 100 |
| 370 501 – 512 800 | 77 362 + 31% of taxable income above 370 500 |
| 512 801 – 673 000 | 121 475 + 36% of taxable income above 512 800 |
| 673 001 – 857 900 | 179 147 + 39% of taxable income above 673 000 |
| 857 901 – 1 817 000 | 251 258 + 41% of taxable income above 857 900 |
| 1 817 001 and above | 644 489 + 45% of taxable income above 1 817 000 |
Source: SARS
| INDIVIDUAL TAX REBATES – 2025 | |
| Type | |
| Primary | R17 235 |
| Secondary (65 and older) | R9 444 |
| Tertiary (75 and older) | R3 145 |
Source: SARS
| INDIVIDUAL TAX THRESHOLDS – 2025 | |
| Age | |
| Under 65 | R95 750 |
| 65 to 75 | R148 217 |
| 75 and older | R165 689 |
Source: SARS
Sin taxes raised
| EXCISE DUTIES | |||
| Excise duties on | 2025 Increases | 2024 Increases | 2023 Increases |
| Malt beer per 340ml can | 16c | 14c | 10c |
| Unfortified wine per 750ml bottle | 29c | 28c | 18c |
| Fortified wine per 750ml bottle | 48c | 47c | 31c |
| Sparkling wine per 750ml bottle | 90c | 89c | 9c |
| Ciders and alcoholic fruit beverages per 340ml can | 16c | 14c | 10c |
| Spirits per 750ml bottle | R5.97 | R5.53 | R3.90 |
| Cigarettes per packet of 20 | R1.04 | 97c | 98c |
| Nicotine, non-nicotine solution for electronic delivery systems per ml | 14c per ml | 14c per ml | – |
| Cigarette tobacco per 50g | R1.16 | R1.09 | R1.10 |
| Pipe tobacco per 25g | 50c | 57c | 33c |
| Cigars per 23g | R8.49 | R9.51 | R5.47 |
Source: Adapted from Budget 2025 People’s Guide
Businesses: Corporate tax rates unchanged
| CORPORATE TAXES 2025 | ||
| Type | Taxable Income (R) Taxable Turnover (R)* Annual Revenue ** |
Rate of Tax (R) |
| Companies – Income Tax | All | 27% of taxable income |
| Small Business Corporations: Income Tax | 1 – 95 750 | 0% of taxable income |
| 95 751 – 365 000 | 7% of taxable income above 95 750 | |
| 365 001 – 550 000 | 18 848 + 21% of taxable income above 365 000 | |
| 550 001 and above | 57 698 + 27% of the amount above 550 000 | |
| Micro Businesses: Turnover Tax | 1 – 335 000* | 0% of taxable turnover |
| 335 001 – 500 000* | 1% of taxable turnover above 335 000 | |
| 500 001 – 750 000* | 1 650 + 2% of taxable turnover above 500 000 | |
| 750 001 and above* | 6 650 + 3% of taxable turnover above 750 000 | |
| Multinational Corporations: Global Minimum Corporate Tax | Annual revenue exceeding €750 million** | Minimum 15% |
Source: Adapted from SARS’ Budget Tax Guide 2025
Proposed VAT increases
| VALUE ADDED TAX (VAT) | |||
| Date | 2018-2024 | 01 May 2025 | 01 April 2026 |
| VAT Rate | 15% | 15.5% | 16% |
Source: Adapted from Budget 2025 People’s Guide
Transfer duty: 10% upward adjustment from 1 April
| TRANSFER DUTIES – 2025 | |
| Value of Property | Rate of Duty |
| R0 to R1 210 000 | 0% of property value |
| R1 210 001 to R1 663 800 | 3% of property value above R1 210 000 |
| R1 663 801 to R2 329 300 | R13 614 + 6% of property value above R1 663 800 |
| R2 329 301 to R2 994 800 | R53 544 + 8% of property value above R2 329 300 |
| R2 994 801 to R13 310 000 | R106 784 + 11% of property value above R2 994 800 |
| R13 310 001 and above | R1 241 456 + 13% of property value above R13 310 000 |
Source: SARS’ Budget Tax Guide 2025
How much will you be paying in income, petrol and sin taxes?
Use Fin 24’s four-step Budget Calculator here to find out the monthly and annual impact on your income tax, as well as what you will be paying in fuel and sin taxes.
Bear in mind, however, that the best way to fully understand the impact of the proposals in Budget 2025 on you and your business is to reach out to us for professional advice.
@Accounting Dot News