“Next to being shot at and missed, nothing is quite as satisfying as an income tax refund.” (F.J. Raymond)
SARS offers a range of rebates, incentives and deductions that can significantly reduce the tax you need to pay, if you know where to look. The challenge is knowing which ones will apply to your situation this Tax Filing Season 2026 (covering the period between 1 March 2025 and 28 February 2026) and how to claim them correctly.
We’ve put together handy (but by no means exhaustive) lists for individuals and businesses.
For individuals
Thanks to rebates available to taxpayers, you only start paying tax when you earn more than a certain amount. For the 2026 Tax Season, that amount is R95,750 if you are under age 65 (increased to R99,000 for the 2027 tax year). The thresholds are much higher for those aged between 65 and 75 and those older than 75. These are automatic rebates that reduce the tax you pay before any other relief is applied.
Medical scheme contribution tax credits provide a monthly rebate for the main member and first dependent, plus lower amounts per month for each additional dependent. If your medical expenses exceed a certain threshold, you may also qualify for additional medical tax credits based on your total out-of-pocket medical costs for the year.
Interest from a South African source up to R23,800 per annum is exempt from income tax when earned by any natural person under 65 years of age (R34,500 over 65) or a deceased estate.
Retirement fund contributions to a registered pension, provident or retirement annuity fund are deductible up to 27.5% of the greater of your taxable income or remuneration, calculated as per the income tax rules, capped at R350,000 per year (increased to R430,000 for the 2027 tax year). This is one of the most powerful ways to lower your tax bill while building long-term savings.
Tax-free savings accounts remain one of the simplest ways to build wealth tax-efficiently. All returns, including interest, dividends and capital gains, are 100% tax free. The annual contribution limit for the 2026 tax year was R36,000 (increased to R46,000 for the 2027 tax year), and the lifetime limit is R500,000.
If you work from home and have a dedicated home-office area used for your trade, you may be able to deduct a portion of your rent, utilities, rates and wear-and-tear on office furniture or equipment on a pro-rata basis. The rules are specific, and there are potential downsides to claiming, so professional guidance is recommended.
Donations to section 18A-approved organisations are deductible up to 10% of taxable income calculated in accordance with legislation. Any excess is carried forward to the following tax year.
For businesses
Small Business Corporations (SBCs) benefit from tax relief including immediate write-off of qualifying new plant or machinery, significantly reducing taxable income in years when you invest in equipment, as well as a wear-and-tear or accelerated allowance on other depreciable assets and a progressive tax rate that can deliver substantial savings for qualifying smaller businesses.
Micro businesses (turnover of R1 million or less, upped to R2.3 million for 2027) may qualify for a simplified turnover tax, instead of the usual taxes payable by companies, such as income tax, provisional tax and Capital Gains Tax (CGT).
There are also specific accelerated depreciation allowances for manufacturing and other assets used in the production of renewable energy.
Employers who register SETA learnership agreements qualify for additional tax deductions beyond the actual training cost, reducing taxable income while building skills.
Qualifying research and development costs are 150% deductible, with accelerated depreciation on R&D machinery and capital assets.
Other deductions worth noting include the Urban Development Zone allowance, the Special Economic Zones incentive offering a reduced corporate tax rate of 15%, and a potential accelerated building allowance for new and unused buildings and improvements to a building at 10% of cost per year. Business owners aged 55 or older might also qualify for a capital gains exemption when selling a business.
Do you qualify?
These are just some of the rebates, deductions and incentives available for the 2026 Tax Season. The difference between a good tax outcome and a great one often comes down to knowing which relief measures apply and how to claim them correctly. Our team stays on top of every change, so you don’t have to.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.
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