The Free Market Foundation (FMF) has announced 16 May 2025 as this year’s Tax Freedom Day: the day that hardworking South Africans finally stop toiling to pay their taxes, and start earning for themselves.
The FMF has marked this day since 1997 to shine a light on the tax burden shouldered by ordinary taxpayers.
Tax Freedom Day on 16 May means that the average South African has laboured 136 days – over a third of the year – to fund government spending.
According to FMF senior associate Professor Richard Grant of Cumberland University, Tennessee, South Africa’s tax burden has climbed to nearly 37% of GDP, up from 30% in 1995 when Tax Freedom Day fell on 23 April.
“Every rand you earn until mid-May goes to taxes – whether it’s income tax, VAT or fuel levies – before you can spend on your family, home or dreams. Taxes don’t just take money; they shrink opportunities. Taxing activities like earning or buying reduces jobs and drives up prices, hitting workers and small businesses hardest,” says Grant.
The FMF’s Liberty First (LibertyFirst.co.za) initiative, launched to champion economic freedom, found that South Africa’s international economic freedom ranking has plummeted since 1994, as it advocates for free markets, secure property rights and less government interference.
For a brief explainer video on Tax Freedom Day, click here