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The Minister of Finance, Mr Enoch Godongwana, delivered the 2026 National Budget speech yesterday, Wednesday 25th February 2026.
- Tax revenue for 2025/2026 is expected to be R2 trillion - R21 billion higher than estimated in the 2025 budget;
- Debt service costs reach R432 billion, which is approximately 21.3% of revenue and is greater than the respective budgets for Basic Education, Economic Development and Peace and Security. Only Social Development has a higher budget than debt service costs. However, debt service costs are expected to stabilize over the next few years at about 20% of revenue;
- Government debt is expected to stabilize at 78.9% of GDP in 2025/2026;
- Excise duties on alcohol and tobacco products will increase by 3.4%;
- Tax tables and certain tax limits have been increased for the first time in many years, and the R20 Billion tax increase previously pencilled into the 2026 budget has been withdrawn. Small Business Corporations and Micro Businesses who utilise the Turnover Tax system will also see significant tax saving adjustments to their tax brackets.
| INCOME TAX: INDIVIDUALS |
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| Tax payable by individuals for the tax year ending between 1 March 2026 and 28 February 2027. | | Taxable Income (R) | Rate of Tax (R) |
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| R0 to R245 100 | 18% of taxable income | | R245 101 to R383 100 | R44 118 + 26% of taxable income above R245 100 | | R383 101 to R530 200 | R79 998 + 31% of taxable income above R383 100 | | R530 201 to R695 800 | R125 599 + 36% of taxable income above R530 200 | | R695 801 to R887 000 | R185 215 + 39% of taxable income above R695 800 | | R887 001 to R1 878 600 | R259 783 + 41% of taxable income above R887 000 | | R1 878 601 and above | R666 339 + 45% of taxable income above R1 878 600 |
| TAX LIMITS |
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| Certain tax limits are adjusted with effect from 1 March 2026. | | Description | Previous limit | Adjusted limit |
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| Annual contribution to tax free investment | R36 000 | R46 000 | | Annual deduction for contributions to retirement funds | R350 000 | R430 000 | | Annual exclusion of capital gains or losses | R40 000 | R50 000 | | Exclusion of capital gains or losses on death | R300 000 | R440 000 | | Exclusion of capital gain or loss on disposal of primary residence | R2 000 000 | R3 000 000 | | Turnover of micro business for turnover tax | R1 000 000 | R2 300 000 | | Compulsory VAT registration limit* | R1 000 000 | R2 300 000 |
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Yours in health and prosperity,
Shane Thom, CFP® GTP(SA)™
CEO | Key Individual | Integrated Wealthcare Advisor
Registered with: FSCA | SARS | CMS
Member: FPI | SAIT | COMENSA | CFA Institute
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