Navigating the 2026/27 SARS Tax Landscape with Experts

Individual Tax Brackets and Thresholds

For individuals and special trusts, the tax rates for the period of 1 March 2026 to 28 February 2027 start at 18% for taxable income up to R245,100. This progresses through several tiers, reaching a maximum of 45% for taxable income exceeding R1,878,600. To assist taxpayers, the primary rebate is set at R17,820. Individuals aged 65 and older qualify for a secondary rebate of R9,765, and those 75 and older receive an additional tertiary rebate of R3,249. Consequently, the tax threshold for individuals below age 65 is R99,000, increasing to R153,250 for those aged 65 to 75, and R171,300 for those 75 and above.

The standard corporate tax rate is 27% of taxable income for years of assessment ending between 1 April 2026 and 31 March 2027. Small Business Corporations benefit from a specialised tiered structure: 0% for income up to R99,000, 7% for income between R99,001 and R365,000, and up to 27% for income above R550,001. Micro businesses may qualify for Turnover Tax, starting at 0% for turnover up to R600,000 and reaching 3% for turnover above R1,400,000.

Strategic Savings and Investment Limits

The annual limit for tax-free investments has increased to R46,000. Amounts received from these investments are exempt from income tax and capital gains tax. Retirement fund contributions remain deductible up to 27.5% of the greater of remuneration or taxable income. This deduction is further limited to the lower of R430,000 or 27.5% of taxable income before including taxable capital gains.

Capital gains on asset disposal are included in taxable income, with a maximum effective rate of 18% for individuals and 21.6% for companies. Individuals receive an annual exclusion of R50,000. Dividends received from South African companies are generally exempt from income tax, but a dividends tax of 20% must be withheld by the paying entities.

Individual Tax Brackets and Thresholds

The 2026 budget introduces several levy increases affecting daily costs:

• The general Fuel Levy increases by 9 cents per litre for petrol and 8 cents per litre for diesel.
• The Road Accident Fund Levy rises by 7 cents per litre for both petrol and diesel.
• Carbon Tax on fuel increases by 5 cents per litre for petrol and 6 cents per litre for diesel.
• Excise duties on alcoholic beverages and tobacco products increase by 3.4%.
• For business travel, the deemed expenditure for local meals and incidental costs is R595 per day.

VAT and Compliance Updates

The VAT compulsory registration threshold has been raised to R2.3 million per annum. Voluntary registration remains available for vendors making taxable supplies exceeding R120,000. Regarding interest, the rate for late or underpayment of tax is 10.25% p.a. as of 1 March 2026.