Budget 2026 has brought long-overdue relief to taxpayers by not imposing VAT or income tax hikes and by adjusting the tables for tax rates, rebates and credits for inflation. Of course, some tax hikes were always going to happen: inflation-linked increases on sin taxes took effect on 25 February already and the fuel levies also increased.
This selection of official SARS Tax Tables and other useful resources will help clarify your tax position for the new tax year. Then follow the link to Fin 24’s Budget Calculator (just follow the four-step process) to do your own calculation.
Income Tax: Individuals
Tax payable by individuals for the tax year ending between 1 March 2026 and 28 February 2027.
| Taxable Income (R) | Rate of Tax (R) |
| 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 |
Source: National Treasury
Personal income tax
TAX HOW DO THE PERSONAL INCOME TAX RATES AFFECT YOU?
Personal income tax brackets and rebates are adjusted for the effect of inflation. The amount an individual can earn before being required to pay tax for the tax year from 1 March 2026 to 28 February 2027 is as follows:
| TAX THRESHOLDS | TAX YEAR: 2026/27 |
| Below age 65 | R99 000 |
| Age 65 to 74 | R153 250 |
| Age 75 and over | R171 300 |
The tax rebates for individual taxpayers are as follows:
| TAX REBATES | TAX YEAR: 2026/27 |
| Primary (all individuals) | R17 820 |
| Secondary (age 65 and over) | R9 765 |
| Tertiary ( | age 75 and over) R3 249 |
Source: National Treasury
Tax limits adjusted
Certain tax limits are adjusted with effect from 1 March 2026.
| Previous limit | Adjusted limit | |
| 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 |
* The change to the VAT registration limit will take effect on 1 April 2026
Source: National Treasury
Sin taxes raised
Increases in alcohol and tobacco duties
Specific excise duties on alcoholic beverages and tobacco products increase by 3.4 per cent, with effect from 25 February 2026.
| Increases by: | |
| Malt beer | 8c per 340ml can |
| Unfortified wine | 15c per 750ml bottle |
| Fortified wine | 26c per 750ml bottle |
| Sparkling wine | 49c per 750ml bottle |
| Ciders and alcoholic fruit beverages | 8c per 340ml can |
| Spirits | R3.20 per 750ml bottle |
| Cigarettes | 77c per packet of 20 |
| Heated tobacco product sticks | 58c per packet of 20 |
| Cigarette tobacco | 87c per 50g |
| Pipe tobacco | 28c per 25g |
| Cigars | R4.56 per 23g |
| Nicotine and non-nicotine solution for electronic delivery systems | 11c per ml |
Source: National Treasury
Fuel Levy hikes
| Fuel Levy | Petrol | Diesel |
| General | + 9 cents per litre | + 8 cents per litre |
| Road Accident Fund | + 7 cents per litre | + 7 cents per litre |
| Carbon Tax | + 5 cents per litre | + 5 cents per litre |
Source: 2026 SARS Budget Guide
How much will you be paying in income, petrol and sin taxes?
Use Fin 24’s four-step Budget Calculator here to find out the monthly and annual impact on your income tax, as well as what you will pay in terms of fuel and sin taxes.
Bear in mind, however, that the best way to fully understand the impact of the proposals in Budget 2026 on your personal and business affairs is to ask us.
NOTE FOR ACCOUNTANTS: National Treasury’s Budget 2026 People’s Guide as well as SARS’ Budget Tax Guide 2026 provide useful overviews of the Budget changes.
