03/03/2026
SA Budget 2026
Key Tax Changes You Should Know
Effective 1 March 2026
The 2026 Budget introduces notable tax relief and increased thresholds aimed at supporting investors, savers, property owners and retirees. Here’s a clear breakdown of the most important updates:
1. Capital Gains Tax (CGT)
• Annual exclusion increases from R40 000 to R50 000
• Primary residence exclusion increases from R2 million to R3 million
• Higher exclusions apply in the year of death and for certain small business disposals
• CGT inclusion rates remain unchanged
Impact: Greater tax relief when selling property or other capital assets, improving after-tax returns.
2. Retirement Contributions
• Tax-deductible contribution limit increases from R350 000 to R430 000
• Still capped at 27.5% of taxable income
Impact: Expanded opportunity to maximise tax-efficient retirement savings while reducing current taxable income.
3. Tax-Free Savings Accounts (TFSA)
• Annual contribution limit increases from R36 000 to R46 000
• Lifetime contribution limit remains R500 000
Impact: Greater capacity to grow long-term investments completely tax-free.
4. Retirement Lump Sum Threshold
• Tax-free lump sum withdrawal threshold increases to R360 000
Impact: Improved tax-free access to retirement savings at retirement stage.
Strategic Planning Opportunity
These changes create meaningful planning opportunities for property owners, investors, business owners and retirees. Reviewing your financial structure before 1 March 2026 could ensure you maximise the available benefits.