Budget Highlights 2026/2027

25/02/2026
  • VAT
    • Compulsory VAT registration threshold will be adjusted from R1 m to R2.3 m, voluntary VAT registration threshold will be adjusted from R50000 to R120000, effective from 1 April 2026.
  • Personal income tax
    • Personal income tax brackets and rebates will be adjusted in line with inflation.
  • Medical tax credits
    • Medical tax credits will increase from R364 to R376 for the first two members, and from R246 to R254 for additional members.
  • Excise duties
    • Increase of excise duties on alcohol and tobacco products by 3.4% in line with inflation, effective from 1 April 2026.
  • Fuel and RAF levies
    • The following changes will be made with effect from 1 April 2026.
      • Increase the general fuel levy by 9c/l to R4.10/l for petrol and by 8c/l to R3.93/l for diesel, below inflation.
      • Increase in the RAF Levy on both petrol and diesel by 7c/l to R2.25/l, in line with inflation. 
  • Tax thresholds and limits
    • The following are among the tax limits adjusted with effect from 1 March 2026.
      • Annual deduction for contributions to retirement funds from R350 000 to R430 000
      • Annual exclusion of capital gains or losses for natural persons from R40 000 to R50 000
      • Exclusion of capital gains or losses on death from R300 000 to R440 000
      • Exclusion of capital gain or loss on disposal of primary residence from R2m to R3m.
      • Turnover of micro business for turnover tax from R1m to R2.3m.
      • Annual contribution to tax free investment from R36 000 to R46 000.
  • Exchange control
    • The single discretionary allowance limit for individuals is increased from R1m to R2m.

Disclaimer: The information contained in this article is a summary of current legislation and budget proposals proposed by the Minister of Finance on the 25th February 2026. We suggest that you do not act solely on material contained in the booklet as the nature of the information contained herein is general and may in certain circumstances be subject to misinterpretation. In addition, the budget proposals may not include all legislative adjustments which could be made in the near future. Consequently we recommend that our advice be sought when encountering these potentially problematic areas. While every care has been taken in the compilation of the booklet, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions.