South Africa Taxes for Expats 2026: What You Pay

Expats · South Africa

South Africa taxes residents on their worldwide income and non-residents only on income earned inside the country. Whether you count as a resident depends on two tests run by the tax authority, not on the visa in your passport.

The Short Answer: Residence Decides Everything

South Africa uses a residence-based tax system. SARS says residents are taxed on worldwide income, while non-residents are taxed only on income that has its source in South Africa.

That split matters more than your nationality. A foreigner who lives in the country for years can be taxed like a local, and a visitor who only earns a rental income there may owe tax on that income alone.

This guide covers the SARS rules for individuals in the 2026/27 tax year. For the wider move, see our guide to moving to South Africa and the South Africa hub.

The Two Residency Tests

SARS applies two tests. The first is the ordinarily resident test, which asks whether South Africa is the country you will naturally and as a matter of course return to.

The second is the physical presence test, and you must meet all three conditions. You must be in South Africa for more than 91 days in the tax year, for more than 91 days in each of the five previous years and for more than 915 days across those five years.

SARS says a resident under the physical presence test stops being a resident from the day they leave, if they then stay away for a continuous period of at least 330 full days. This does not apply to people who are ordinarily resident. Treaties between South Africa and your home country can also override the result if you would otherwise count as resident in both.

What Residents Pay in 2026/27

The 2026/27 tax year runs from 1 March 2026 to 28 February 2027. SARS publishes seven brackets, and the table below converts each threshold at 16.48 rand per US$.

Taxable income	Tax	Upper limit in US$
R1 to R245,100	18% of taxable income	US$14,900
R245,101 to R383,100	R44,118 plus 26% above R245,100	US$23,300
R383,101 to R530,200	R79,998 plus 31% above R383,100	US$32,200
R530,201 to R695,800	R125,599 plus 36% above R530,200	US$42,200
R695,801 to R887,000	R185,215 plus 39% above R695,800	US$53,800
R887,001 to R1,878,600	R259,783 plus 41% above R887,000	US$114,000
Above R1,878,600	R666,339 plus 45% above R1,878,600	Above US$114,000

Every individual taxpayer gets a primary rebate of R17,820 (about US$1,080) off the tax bill. That puts the tax-free threshold at R99,000 (about US$6,000) of taxable income for people under 65.

The thresholds are higher for older taxpayers, at R153,250 from age 65 and R171,300 from age 75. These figures come from the SARS rate tables published after the February 2026 Budget.

What Non-Residents Pay

Non-residents are taxed only on South African income. SARS lists employment income earned in the country, rental income from South African property, pensions, royalties for intellectual property used there and capital gains on South African immovable property. Interest and dividends from South African sources can also be taxable, subject to exemptions and to dividends tax.

Employment income is subject to the terms of any double taxation agreement. A non-resident who receives income that needs a normal tax assessment must file a return.

Selling South African property is a common trap. SARS lists capital gains on immovable property in the country as taxable for non-residents, so a sale can create a bill even if you left years ago.

The Foreign Employment Income Exemption

This exemption is for people who are tax residents and work abroad, not for foreigners arriving to work from South Africa. SARS exempts the first R1.25 million (about US$75,900) of foreign employment income, and anything above that is taxed in South Africa.

The resident must work abroad for more than 183 full days in any 12-month period, including a continuous stretch of more than 60 full days. The exemption covers salaries, bonuses and allowances, but it excludes independent contractor income and public-sector pay.

Remote Workers and the 183-Day Rule

Remote workers on the South African remote work visa face a separate point. The Minister of Home Affairs said in a parliamentary reply that holders must register with SARS if they stay more than 183 days in any 12-month period.

That is a registration rule, and it is different from the residency tests above. A remote worker should check both, because registering with SARS does not by itself settle what income is taxable.

Filing Dates and Deadlines

Press reports based on the SARS announcement say the 2026 filing season opened on 13 July 2026. They give 23 October 2026 as the deadline for non-provisional taxpayers and 22 January 2027 for provisional taxpayers.

Those dates cover the tax year that ended on 28 February 2026. Non-residents with South African income file a return as well, using the non-resident version of the SARS return.

Americans: Two Tax Systems

The United States taxes its citizens on worldwide income wherever they live. South Africa and the United States have a double taxation agreement, which exists to stop the same income being taxed twice.

How the credits work depends on your income type and your residency status. A cross-border tax adviser can set out the credits for your own case.

What It Means for You

If you plan to stay more than a few months a year, count your days and write them down, because the physical presence test is built on day counts. If you spend less time in the country and have no South African income, the main exposure is your home-country tax bill.

A cross-border tax adviser is worth paying before you sign a lease or a contract. The rules look simple on paper, but treaties, visa terms and the type of income change the answer.

What Is Not Known

SARS decides each residency question on the facts, and we cannot say how it would treat a particular remote worker. We also did not confirm how SARS treats time spent on the remote work visa in the day counts.

Rates and thresholds can change with each February Budget. The figures here apply to the 2026/27 year only.

Frequently Asked Questions

Do expats pay tax in South Africa?

Yes, if they become tax residents or earn South African income. Residents are taxed on worldwide income, while non-residents are taxed only on income from a South African source.

How do I become a South African tax resident?

SARS uses an ordinarily resident test and a physical presence test. The physical presence test needs more than 91 days in the tax year, more than 91 days in each of the five previous years and more than 915 days across those five years.

What is the top income tax rate in South Africa?

The top rate is 45% on taxable income above R1,878,600 (about US$114,000) for the 2026/27 tax year. The lowest rate is 18% on the first R245,100 (about US$14,900).

When does the South African tax year run?

The 2026/27 tax year runs from 1 March 2026 to 28 February 2027. Individual returns for the year that ended on 28 February 2026 are being filed now.

Does South Africa tax foreign income earned abroad?

Residents are taxed on worldwide income. SARS exempts the first R1.25 million (about US$75,900) of foreign employment income for residents who spend enough time working abroad, but the exemption does not cover contractors.

Do Americans in South Africa pay tax twice?

Not necessarily, because South Africa and the United States have a double taxation agreement, and the US also taxes its citizens on worldwide income. A cross-border tax adviser can work out credits for your case.

Sources

• SARS, rates of tax for individuals, 2026/27 (1 March 2026 to 28 February 2027)
• SARS, tax and non-residents
• SARS, foreign employment income exemption
• Parliamentary Monitoring Group, Question NW296 to the Minister of Home Affairs, 2 April 2026
• IOL, SARS announces 2026 tax filing dates, 3 June 2026
• EODHD, USD/ZAR rate of 14 October 2026