Tax Freedom Day 2025: SA works 136 days to feed the state - FMF
Key topics
Tax Freedom Day falls on 16 May – 136 days into 2025
SA’s tax burden has soared to 37% of GDP since 1995
FMF urges for free markets, lower taxes, and less state waste
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Issued by the Free Market Foundation
Tax Freedom Day 2025: SA works until 16 May to pay for bloated government
The Free Market Foundation (FMF) has announced 16 May 2025 as this year’s Tax Freedom Day: the moment when 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 Prof Richard J 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,” argues 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, and advocates for free markets, secure property rights, and less government interference.
“Imagine a country where your earnings stay in your pocket longer, where entrepreneurs can create jobs without red tape, and where prosperity lifts everyone. That’s the FMF’s vision,” says David Ansara, Chief Executive Officer of the FMF.
“Every year, Tax Freedom Day reminds us how much of our sweat and sacrifice goes to the state,” adds FMF Deputy Head of Policy Dr Morné Malan. “Through Liberty First, we’re advocating for policies that let you keep more of what you earn and build a brighter future.”
The FMF opposes wasteful spending, like bloated state-owned enterprises that continue to drain hundreds of billions, and ideologically driven taxes that chase away investors. According to the FMF, South Africa needs policies that grow wealth, not tax it away.
“For 50 years, the FMF has advocated for individual liberty, private property, and free enterprise. Let’s make Tax Freedom Day come sooner. Together, we can build a South Africa where your hard work pays off for you, not just the taxman,” Malan concluded.
View explainer video HERE.