South African tax education
Tax Law Changes 2026 South Africa
Budget 2026 brought several changes that individuals and small businesses should check before filing, registering, or updating calculators.
Last updated: 19 May 2026
- Match every tax decision to the correct tax year and source documents.
- Check SARS pre-populated data against your own records before filing.
- Get advice where cross-border income, disputes, business income, or material claims are involved.
What changed in 2026?
SARS's Budget 2026 guidance lists changes for the 2026/27 year of assessment, including inflation-adjusted individual tax brackets, updated rebates and tax-free thresholds, VAT registration threshold changes, turnover tax updates, and certain capital gains tax exclusions.
Personal income tax changes
For the 2026/27 tax year, SARS states that individual tax brackets were adjusted by 3.4%. Rebates and tax-free thresholds were also updated. Use current SARS tables before calculating PAYE, provisional tax, or tax estimates.
| Item | 2026/27 SARS figure |
|---|---|
| Primary rebate | R17 820 |
| Secondary rebate | R9 765 |
| Tertiary rebate | R3 249 |
| Tax-free threshold under 65 | R99 000 |
| Tax-free threshold age 65 to 74 | R153 250 |
| Tax-free threshold age 75 and older | R171 300 |
VAT threshold changes
From 1 April 2026, SARS states that the compulsory VAT registration threshold increased to R2.3 million and the voluntary registration threshold increased to R120 000, subject to the rules and exceptions.
Turnover tax changes
Budget 2026 also changed the turnover tax regime for qualifying micro businesses, including an increased turnover limit and updated bands. Businesses should compare turnover tax against normal income tax and VAT obligations before applying.
What to update on your side
- Payroll and PAYE calculators.
- Provisional tax estimate templates.
- VAT registration decision notes.
- Small business turnover tax comparisons.
- Tax planning examples that still use older thresholds.
FAQ
When did the VAT threshold change apply?
SARS states the VAT registration threshold changes are effective from 1 April 2026.
Can I use 2025 tax tables for 2026/27?
No. Use the tax table for the correct year of assessment.
Are Budget changes final immediately?
Budget announcements may still depend on legislative and administrative implementation, so confirm the latest SARS position before acting.
Next steps
- Collect the certificates, invoices, statements, and calculations behind the issue.
- Compare the page guidance to the latest SARS source linked below.
- Update your return, estimate, or filing checklist only after the figures agree to source documents.
Official checks
Use these SARS pages to confirm the latest position before filing, registering, or changing a tax position.
Source and disclaimer
This site provides general educational information for South African taxpayers. It is not tax, legal, accounting, or financial advice. Tax rules and SARS processes can change, so verify current requirements with SARS or a qualified professional before acting.