“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 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 R95,750 if you are under 65. The threshold jumps to R148,217 for those aged between 65 and 75, and R165,689 if you are 75 or older. These are automatic deductions that reduce the tax you pay before any other relief is applied.
- Medical scheme contribution tax credits provide R364 per month for you and another R364 for your first dependent, plus R246 per month for each additional dependent. For taxpayers under 65, an additional credit of 25% may be available where the combined total of medical aid contributions above four times the medical tax credit, plus qualifying out-of-pocket medical expenses, exceeds 7.5% of taxable income. Taxpayers 65 and older, and those with disabilities, qualify for a 33.3% credit on medical aid contributions that exceed three times the medical tax credit received plus additional out-of-pocket medical expenses.
- Interest from a South African source of 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 and capped at R350,000 per 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, 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 new plant or machinery. SBCs also benefit from 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 (with a total annual turnover of R1 million or less) may qualify for a simplified turnover tax, that replaces the usual taxes payable by companies, such as income tax, provisional tax and Capital Gains Tax (CGT).
- Some manufacturing businesses may also enjoy specific accelerated depreciation allowances for manufacturing machinery and certain assets used in the production of renewable energy.
- Employers who register SETA learnership agreements qualify for additional tax deductions beyond the actual training cost. This is a great way of 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 older than 55 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. 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.
If you would like to ensure you and your business don’t pay more than necessary this tax season, please get in touch. We will review your situation, identify every relief measure available, and make sure you do not pay a cent more tax than you should.
