Budget Highlights 2026/2027

Written on 25/02/2026
Profmark Ai
  • 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.