It’s that time of year again… the annual 2026 Budget Speech is here! Here are a few of the TAX UPDATES every South African should know about.
With the BUDGET comes some tax changes that may affect your personal tax position, payroll, and long-term financial planning.
Here’s your breakdown of the changes–no fluff, just the important stuff.
Medical Aid Tax Credits Increased By a Little
Contributing to a medical aid? Your tax credit will increase slightly:
Primary member + 1st dependant: R374 (+R10)
Additional dependants: R254 (+R8)
Not huge…but still something to keep in mind for your monthly tax position.
Travel Reimbursement Rate Up
Fixed travel rate has gone up as follows:
R4.76/km → R4.95/km
Remember:
If you are reimbursed over this amount by your employer, the excess is taxable as earnings (section 7B).
Higher Retirement Contributions Can Be Deducted
Potentially big news if you are contributing to a retirement fund.
Contributions can now be deducted up to:
- 27.5% of taxable income OR remuneration –whichever is greater
- Up to a limit of R430,000 (Increased from R350,000).
Effective from 1 March 2026.
Tax-Free Investment Maximum Contributions Up
Another win for investors.
- Tax-Free investment annual contributions limit increased to R46,000 from R36,000. Lifetime limit remains R500,000.
Feed these things and watch your wealth grow tax-free.
Interest Exemption Amounts Remain the Same
No changes:
Under age 65: R23,800
Age 65+: R34,500
Capital Gains Tax (CGT) Annual Exclusion Increased
Individuals:
- R50,000 pa increase (up from R40,000)
- This amount is exempt from CGT each year.
Primary Residence Exclusion Increased
Savers/investors who own property will be pleased.
Primary residence exclusion increased from R2 million to R3 million.
This exempts more of your gain on the sale of your primary residence from CGT.
Donations Tax Exemption Increased
Effective immediately.
Donation tax exemption increased from R100,000 to R150,000 pa (per donor)
Great for estate planning purposes.
Estate Duty Remains Unchanged
Stays the same:
- 20% on estates up to R30 million
- 25% on estates above R30 million
- No change to R3.5m abatement
Casual Gifts Allowance for Companies/Trusts Added
Effective 1 March 2026 – Casual gifts rules now apply to donations by body corporates (companies) and trustees.
These donors can now gift:
- Up to R20,000 pa
- Without incurring donations tax
Not massive…but nice to have for certain planning strategies.
Tax Thresholds/Rebates Increased
Seeing some increases if you are an individual taxpayer:
- Tax threshold – R99,000 (was R95,750)
- Primary rebate – R17,820 (was R17,235)
How These Changes Can Affect You
When you look at each of these tax changes individually, they aren’t mind blowing… But they can affect:
- How much you take home every month
- How much you save for retirement
- How you structure your investments
- Your tax compliance exposure
Small adjustments to your financial planning can have big results.
Interested in making them work FOR you?
Want someone to hold your hand through it?
That’s where our team can help.
Office Executives can help you with:
- Salary packaging
- Reviewing your travel expenses/reimbursements
- Maximise contributions for retirement
- Ensuring you don’t overstep compliance lines
…and most tax planning strategies aren’t a “one-off” setup. Once it’s correct, it should keep working for you.
Reach out to the team today for a no-stress review of how you can use this to your advantage.
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