Here is how much tax you will pay in 2026 based on what you earn
Finance Minister Enoch Godongwana has tabled the budget for 2026, including some welcome tax relief for taxpayers.
After two years of frozen tax brackets and medical aid tax credits, both will be fully adjusted for inflation in 2026.
In addition, the R20 billion in additional tax measures pencilled in at the medium-term budget policy statement and 2025 Budget have been withdrawn.
Other tax thresholds and limits will also be adjusted for the impact of inflation, to assist small businesses and encourage savings, National Treasury said.
Godongwana noted that, over the past three years, South Africa’s tax system has demonstrated resilience despite slow economic growth.
For 2025/26, the gross tax revenue is revised up by R21.3 billion compared to the estimate in the 2025 Budget.
Higher-than-expected net VAT, corporate income tax and dividends tax collections improved the in-year outlook, he said.
Because of this, the government felt confident enough to withdraw the R20 billion in tax increases provisionally included in the May 2025 Budget.
“The improving fiscal position allows us enough room to withdraw the proposed tax increases, without putting fiscal sustainability or economic activity at risk,” the minister said.
The inflationary adjustment will be a welcome move for taxpayers who have had to suffer through “stealth taxes” brought by bracket creep.
In practical terms, it means that employees receiving inflation-linked salary increases don’t risk being pushed into a higher tax bracket, while the state coffers won’t enjoy the ‘cream off the top’ as in previous years.
The new tax tables for 2026/27 can be seen below:
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