Tax rebates help reduce the amount of income tax you owe each year. For many individuals, the rebate can mean the difference between paying tax or paying nothing at all. This article explains how rebates work for natural persons, how age affects your rebate entitlement, and what happens in special circumstances like death, birth, insolvency, or emigration.

The Primary Rebate (For Individuals Under 65)

Every natural person is entitled to a primary rebate, which reduces the amount of “normal tax” you must pay.

Rebate Amount (2025/2026)

Primary rebate:R17,235
This rebate determines the “tax threshold” – the income below which you do not pay any income tax.

Tax Threshold

Under 65: R95,750 per year – (Equivalent to R7,979.16 per month)
This means:
➡️ If you are under 65 and your taxable income is R95,750 or less, you will not pay any income tax.

A Note on Bracket Creep

The primary rebate (and tax thresholds) has not been adjusted for several years, which means taxpayers have not received inflationary relief. As a result, many people are pushed into paying more tax even though tax rates themselves have not changed – a concept known as fiscal drag or bracket creep.

Rebates Are Non-Refundable

Tax rebates can only reduce your tax liability “down to zero” – not below.

• You cannot receive a refund because your rebate is larger than your tax owed.
• Any unused portion cannot be carried forward to the next tax year.

Example

If your tax before rebate is R12,000, the primary rebate of R17,235 will reduce your tax to R0, but the remaining R5,235 is not refundable.

Additional Age Rebates (65+ and 75+)

Older taxpayers receive additional rebates to lighten their tax burden.

Rebate Amounts

Secondary rebate (65+):** R9,444
Tertiary rebate (75+):** R3,145
These amounts are added on top of the primary rebate.

Important: Qualification Rule

For age-based rebates, the Income Tax Act uses a “would have been” rule:

• If you were or would have been 65 or 75 on the last day of the year of assessment, you qualify for the applicable rebate.
• This means that if you die during the year but would have reached the qualifying age by year-end, SARS still treats you as having reached that age for rebate purposes.

Example

A taxpayer turns 65 on 20 December but passes away in September.
➡️ They still qualify for the secondary rebate, because they would have been 65 on the last day of the tax year.

Apportionment of Rebates for Partial Years

Sometimes a taxpayer’s year of assessment is shorter than 12 months. This happens when a person:

• is born during the year
• dies during the year
• becomes insolvent, or
• emigrates
  In these cases, your rebate must be apportioned based on the number of days in your shortened assessment period.

How Apportionment Works

Rebate amount × (days in your assessment period ÷ 365)
The law refers to “period assessed relative to 12 months, which effectively adjusts your rebate according to days in that assessment period

Example

If a person is born halfway through the tax year, they only receive half of the full rebate.

Rebates and Emigration

When a natural person ceases to be a South African tax resident:

• Their year of assessment ends on the day before they cease residency.
• A new assessment period starts from the date they become non-resident if they still receive South African taxable income (e.g., rental, business income).
  Each period receives a pro-rated rebate based on the number of days in that period.

Tax rebates are an essential part of calculating your income tax liability. Understanding how the primary, secondary, and tertiary rebates work – and how they are applied in special circumstances – ensures you pay the correct amount of tax and avoid surprises when filing your return.

If you would like help calculating your rebate, understanding your residency status, or preparing for emigration, our team is here to assist.