Tax on interest and dividends (South Africa)

Enter your income, interest and dividends to see how much is taxed and what you keep.

Total tax on interest and dividends

R 6 212

Interest earned: R 40 000
Interest exemption: R 23 800
Interest that is taxed: R 16 200
Income tax on the interest: R 4 212.00
Interest after tax: R 35 788.00
Share of the interest paid as tax: 10.5%

Local dividends

Dividends received: R 10 000
Dividends tax: R 2 000.00
Dividends after tax: R 8 000.00

Interest up to the exemption is tax-free. Interest above it is added to your income and taxed at your rate. Local dividends have dividends tax taken before you receive them and are not taxed again as income. Foreign dividends and interest are not covered.

Some dividends are exempt or taxed at a reduced rate, for example those paid to certain funds. This tool applies the standard rate. Your tax certificates show the figures to use.

Estimates only. Not financial advice.

How the interest and dividends tax calculator works

Last updated 10 November 2026

Interest and dividends are taxed differently in South Africa. Interest is part of your income, with a yearly amount that is tax-free. Local dividends have a flat tax taken at source. This page shows both side by side and what is left after tax.

How it works

Enter your other taxable income for the year, before interest, and your age group.
Enter the interest you earned and the local dividends you received.
Read the tax on the interest, the dividends tax and the amounts after tax.

Worked example

With the starting figures:

Interest of R 40 000 is reduced by the exemption of R 23 800, so R 16 200 is taxed. On other income of R 336 000 the tax on it is R 4 212.00.
Dividends of R 10 000 carry dividends tax of R 2 000.00. Together the tax is R 6 212.00.

The interest exemption

Each year, part of your interest is tax-free: R 23 800 if you are under 65 and R 34 500 if you are 65 or older. Only interest above that is added to your income. The exemption applies to all your interest together, so count every account.

Why the rest is taxed at your top rate

Taxed interest sits on top of your other income. It is taxed in whichever bracket your income reaches, so the share paid depends on how much else you earn. The tool works the tax out with and without the interest, and shows the difference.

Dividends tax

Local dividends have dividends tax of 20% withheld before they reach you. They are then exempt from income tax, so the tool does not tax them again. Exemptions and lower rates apply to some recipients, such as certain funds, and are not modelled.

Where the figures come from

The exemption, brackets and dividends tax rate come from SARS. We read them on 10 November 2026. The figures register shows the source and the date. This is an estimate from public tables, not tax advice. Read the full disclaimer.

Things to watch

Your bank and investment tax certificates show the figures SARS holds.
Foreign income and tax-free savings accounts follow other rules.

Questions people ask

Is interest taxed in South Africa?

Yes, but the first R 23 800 a year is exempt if you are under 65, and the first R 34 500 if you are 65 or older. Interest above that is added to your other income and taxed at your normal income tax rate.

What is dividends tax?

It is a tax of 20% on local dividends, taken by the company or the fund before you receive the money. Local dividends are then exempt from normal income tax. Some people and funds are exempt or pay a lower rate.

Do I declare interest I earned in a tax-free savings account?

Interest, dividends and gains inside a tax-free savings account are not taxed, up to the limits. See the tax-free savings calculator.

What about foreign interest or dividends?

They follow different rules and are not covered here. Check SARS for the current treatment.

Where do I find my interest figure?

Your bank and investment providers issue a tax certificate each year showing the interest and dividends paid. SARS often pre-fills these on your return.

Is anything stored?

No. Your numbers stay in the page and are not sent anywhere.

Figures last checked on 10 November 2026 for the 2026/27 tax year. Sources: SARS: Rates of tax for individuals, SARS: Medical scheme fees tax credit rates.

Estimates only, based on 2026/27 figures. Not financial advice. Read the full disclaimer.