Snippets February 2026: Key tax highlights – South Africa Budget Speech 2026

The 2026 National Budget, delivered by Finance Minister Enoch Godongwana on 25 February 2026, reflects stabilising fiscal environment, improved revenue performance and focused support for households and small businesses.

  1. Debt and Fiscal Outlook
    • National debt stabilises for the first time in 17 years with a decline expected over the medium term.
    • Budget deficit continues to narrow supported by stronger than expected revenue collection.
    • Inflation expected to remain moderate around 3.4%.
  1. Personal Income Tax & Savings
  • Planned R20 billion tax increase withdrawn due to higher 2025 collection.
  • Personal income tax brackets and rebates adjusted for inflation, preventing bracket creep.
  • The tax-exempt limit on donations will increase from R100 000 to R150 000.

 

 

 

 

 

 

  1. Small Business Relief:
    • VAT registration threshold increases from R1 million to R2.3 million.
    • Capital gains tax exemption on sale of businesses increases to R2.7 million (for businesses valued up to R15 million).
  1. Corporate Income Tax:
    • Corporate tax rate remains unchanged at 27%
    • Dividends tax remains unchanged at 20%
    • Capital gains tax inclusion rate remains unchanged at 80%
  1. “Sin Taxes” and Fuel Levies:
  • Cigarettes: R22.81 -> R23.58 per pack
  • Beer/Cider (340ml): +8c
  • Fuel levies:
    1. Petrol: +9c
    2. Diesel: +8c
  • Road Accident Fund: +7c
  1. Other:
    • Further consultation planned during 2026 regarding a national online gambling tax
    • The annual single discretionary allowance for individuals for exchange control purposes is increased from R1 million to R2 million.

Overall, the 2026 Budget reflects a turning point with stabilising debt, cautious tax relief, targeted social support and meaningful stimulus through infrastructure spending. Businesses and households gain modest relief while government continues to prioritise fiscal discipline and structural reform.