Budget Speech 2026: Key Changes for Individuals

The 2026 Budget Speech introduces several updates aimed at providing relief and encouraging savings for South African taxpayers.

Personal Income Tax Relief

Adjustments to personal income tax brackets offer some relief, helping individuals better manage the rising cost of living.

Medical Tax Credits Increase

Medical tax credits have increased from R364 to R376 per month, giving slight additional support to those with medical expenses.

Capital Gains Tax (CGT) Relief

The annual CGT exclusion has increased from R40,000 to R50,000.

The primary residence exclusion has been raised from R2 million to R3 million, benefiting homeowners when selling their property.

Tax-Free Investment Limit Increase

The annual contribution limit for tax-free investments has increased from R36,000 to R46,000, encouraging individuals to save more efficiently for the future.

These changes create opportunities for individuals to optimise their tax position and grow their savings. Reviewing your financial plan in light of these updates is essential.