Understanding taxes is essential for everyone, and the 2026 SARS Tax Guide provides crucial updates for South Africans. For individuals, tax rates range from 18% for incomes above R95, 750 to 45% for earnings over R1.8 million, with higher thresholds for those aged 65 and above.
Deductions can help you save, such as contributing to retirement funds (up to 27.5% of income or R350, 000 annually) or claiming medical tax credits-R364 for the first two dependents and R246 for additional dependents. Charitable donations to approved organizations are deductible up to 10% of taxable income. For savers, interest earned up to R23, 800 (under 65) or R34, 500 (65+) is tax-free, while dividends are taxed at 20%. VAT increases slightly to 15.5% in May 2025 and will rise to 16% in April 2026. Property transfer duties remain zero for properties valued below R1, 210,000, with rates increasing for higher amounts.
Retirement withdrawals are tax-free up to R27,500, while higher amounts are taxed progressively. Small businesses pay no tax on income up to R95, 750, and higher brackets are taxed at rising rates, while companies are taxed at 27%. Estate duty is set at 20% for estates up to R30 million and 25% for amounts above that. With these updates, it’s important to keep track of your finances, take advantage of available deductions, and seek professional advice to maximize your financial benefits and stay compliant.OR 2025/26 Tax Guide Made Simple Taxes might seem tricky, but this guide breaks it down. If you earn more than R95,750 a year, you’ll pay taxes starting at 18%, with higher earners paying up to 45%.
Seniors get higher tax-free thresholds. You can save money by contributing to retirement funds, claiming medical aid tax credits, or donating to approve charities.If you’re saving, interest up to R23, 800 (or R34,500 for seniors) is tax-free, and dividends are taxed at 20%. VAT will go up from 15% to 15.5% in May 2025 and 16% in April 2026. Property under R1, 210,000 has no transfer duties, and small businesses get tax breaks up to R95, 750 of income. For companies, the tax rate is 27%.
Retirement fund withdrawals under R27, 500 are tax-free, with higher amounts taxed more. Estate duty applies at 20% for estates up to R30 million and 25% above that.
Staying informed and using deductions wisely can make taxes easier to manage.
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