Today (20 May 2024) is Tax Freedom Day – the day when the average taxpayer has earned enough money to fulfil their annual tax obligation.

From 1 January until 20 May, all the income earned by tax-paying South Africans is needed to pay for one year of government spending. After Tax Freedom Day, taxpayers work for themselves and their families, and not for the government.

The Free Market Foundation (FMF) has calculated and published South Africa’s Tax Freedom Day annually since 1997.

“Based on recent tax and spending levels, South Africa’s Tax Freedom Day is predicted this year to land on 20 May, four days later than last year. At the end of 2024, with complete data for the year, the date could be revised a couple of days earlier or later. But over the past 30 years, the actual Tax Freedom Day has been trending ever later in the year – and making most people poorer,” says Dr Richard J Grant, FMF senior consultant and Professor of Finance and Economics at Cumberland University, Tennessee.

Tax Freedom Day is determined in this way and spread over the first months of the calendar year to give us an idea of how the burden of taxes affects the average taxpayer. It is accepted that some lose more and others less of their hard-earned income in taxes, but the average, measured in days of the year, confirms what people know intuitively: South Africans are paying too much tax with a very low return on investment.

Given the current state of affairs in South Africa, Tax Freedom Day is likely to trend later and later into the year as government spending, the deficit, and public debt continue to increase.

Elaborating on the concept, Grant explains: “If Tax Freedom Day were on 1 January, taxpayers would be paying no tax, and if it falls on 31 December, the government would be taking all of our incomes as tax and we would have nothing left. The later the day, the worse for the average taxpayer and for anyone who needs a job.”

Over the 30 years, 2024 is the latest Tax Freedom Day bar one:

1995 – 23 April

1996 – 20 April

1997 – 26 April

1998 – 28 April

1999 – 4 May

2000 – 29 April

2001 – 29 April

2002 – 18 April

2003 – 25 April

2004 – 25 April

2005 – 29 April

2006 – 28 April

2007 – 25 April

2008 – 25 April

2009 – 3 May

2010 – 4 May

2011 – 5 May

2012 – 11 May

2013 – 9 May

2014 – 12 May

2015 – 19 May

2016 – 10 May

2017 – 9 May

2018 – 11 May

2019 – 10 May

2020 – 25 May

2021 – 19 May

2022 – 17 May

2023 – 16 May

2024 – 20 May