5 Tax Questions Every South African Is Googling Right Now (May 2026 Edition)

Three things changed in South African tax this month. SARS gazetted the 2026 filing deadlines on 30 April. The new R2.3 million VAT threshold kicked in on 1 April. And the third two-pot withdrawal cycle opened on 1 March. The result is a wave of confusion, and the same five questions keep landing in our inbox.

Here are those questions, with answers you can act on.

1. When do I need to file my 2026 tax return, and do I even have to?

The most-asked question this week. SARS published the dates on 30 April.

Non-provisional individual taxpayers have until Friday, 23 October 2026. Provisional taxpayers and trusts have until Friday, 22 January 2027. Companies must file within 12 months of their financial year-end.

Filing season usually opens in early July. Auto-assessments come first, then everyone else from around 21 July.

Do you actually have to file? You’re exempt if your gross income for 1 March 2025 to 28 February 2026 consists only of remuneration of R500,000 or less from one employer (with PAYE deducted), interest below R23,800 if you’re under 65 or R34,500 if you’re 65 or over, dividends if you were a non-resident all year, money from a tax-free savings account, or a single retirement lump sum where SARS already issued a directive.

If any of these apply to you, you must file: rental income, freelance income, crypto gains, foreign assets, or income from more than one employer in the same year.

One warning. If SARS’ system shows an outstanding return against your tax number, the penalty clock runs whether or not you thought you had to file. Penalties range from R250 to R16,000 per month per outstanding return.

2. How does the two-pot retirement withdrawal get taxed?

The third withdrawal cycle opened on 1 March, and two-pot tax is now the most-Googled retirement topic in the country.

Short answer: any savings-pot withdrawal gets added to your taxable income for the year and taxed at your marginal rate.

Worked example. Say you earn R420,000 a year, which puts you in the 31% bracket, and you withdraw R40,000 from your savings pot. The R40,000 is added to your taxable income. It gets taxed at 31%, which works out to R12,400. SARS deducts that tax via a directive before your fund pays you. You receive roughly R27,600.

Three things catch most people. First, a big withdrawal can push part of itself into the next tax bracket, so the rate you actually pay on the withdrawal is higher than your usual marginal rate. Second, you only get one withdrawal per fund per tax year, and the tax year runs 1 March to 28 February. Withdraw in April and you wait until next March. Third, the minimum withdrawal is R2,000. Anything below that and the fund won’t process it.

Our companion post on two-pot tax goes deeper, including how to estimate what you’ll pay before you click withdraw.

3. What does the new R2.3 million VAT threshold mean for my small business?

This one matters for any small business owner, and it took effect on 1 April.

The compulsory VAT registration threshold rose from R1 million to R2.3 million in annual taxable supplies. The voluntary threshold rose from R50,000 to R120,000. The Turnover Tax threshold also rose to R2.3 million.

What does that mean in practice? If your business turns over less than R2.3 million a year, you no longer have to register for VAT. If you’re already registered voluntarily and you’re below the new threshold, your registration won’t cancel on its own. You have to apply for deregistration if you want out. You can also be registered for both Turnover Tax and VAT at the same time if it suits how you trade.

Should you deregister? Not always. Staying VAT-registered means you can still claim input VAT on big purchases like vehicles, equipment, and stock. If your customers are mostly other VAT-registered businesses, it makes no difference to them. If your customers are consumers, like a hair salon or a takeaway, deregistering can give you a 15% margin improvement overnight.

Run the numbers with your accountant before you decide.

4. The new 2026/27 tax brackets: am I actually saving anything?

Barely. The 2026/27 brackets adjusted by 3.4% for inflation, which is the first inflationary adjustment since 2023/24.

The new rebates:

  • Primary rebate: R17,820 (up from R17,235)
  • Secondary (age 65+): R9,765 (up from R9,444)
  • Tertiary (age 75+): R3,249 (up from R3,145)

The new tax-free thresholds, below which you pay zero income tax:

  • Under 65: R99,000
  • 65 to 74: R153,250
  • 75 and over: R171,300

What you actually save: the primary rebate change gives a taxpayer under 65 about R585 more in their pocket per year compared to 2025/26. That’s R49 a month. The top marginal rate stays at 45%, kicking in at roughly the same income level once you adjust for inflation.

5. SARS auto-assessed me. What do I do?

Auto-assessments roll out in batches, typically between 7 and 20 July. SARS pulls your IRP5, medical aid certificate, retirement annuity certificate, and bank interest data, calculates your tax, and sends you an SMS or email.

Three scenarios.

If you agree and a refund is due, do nothing. The refund lands in your bank account within 72 hours, as long as your banking details on eFiling are current. If they aren’t, the refund stalls until you fix them.

If you agree but you owe SARS, pay via eFiling or the MobiApp by the date on the ITA34. Late payment means interest.

If you disagree, file a corrected return through eFiling or MobiApp before 23 October 2026. This is the scenario to watch. You’ll need to file if you have rental income, freelance income, home-office deductions, additional medical expenses, donations to a PBO, or travel claims that SARS doesn’t already have. Don’t accept the auto-assessment thinking you’ll fix it later. Once accepted, you’re stuck objecting and disputing, which takes months.

The trap most people miss: SARS’ auto-assessment only uses third-party data. It doesn’t know about your home office, the course you paid for, or any medical expenses you paid out of pocket. Those deductions only come through if you file.

Quick action checklist for the rest of May 2026

  • Confirm your eFiling profile is active and your contact details are current
  • Check your banking details on eFiling. Refunds bounce when they aren’t
  • Wait for your IRP5 from your employer. The deadline for issue is 31 May
  • If you have rental, freelance, or investment income, start gathering supporting documents now
  • If you’re thinking about a two-pot withdrawal, calculate the tax first

Need help with your 2026 tax return?

SARS has said enforcement is the priority this year, so the filing window will be tighter than last year. If your tax affairs include rental income, foreign assets, multiple employers, or a recent two-pot withdrawal, talk to us now rather than in October.