Taxes

If you work from home more than half the time in a dedicated room, you can deduct a share of your rent, electricity, water, and cleaning fees. The share is the floor area of that room divided by the floor area of the home.

If you rent, this is upside. If you own your home, claiming a home office cuts into the R3 million tax-free primary-residence exclusion when you sell, from 1 March 2026. That can create a large capital gains tax bill later.

The first R23 800 of local bank interest each year is tax-free. If you are 65 or older, the exempt amount is R34 500. At a typical 7% money-market rate, that is about R340 000 in cash, or about R493 000 if you are 65 or older.

Avoid keeping more than this in deposits or money markets unless you need it for emergencies, or for spending within the next two years. Interest above the exemption is taxed as normal income. Foreign interest has no exemption.

Invest up to R46 000 a tax year, from 1 March 2026, and up to R500 000 over your lifetime. You pay no South African tax on interest, dividends, or capital gains, while the money grows or when you withdraw. A US share fund can still have US dividend tax taken off before the dividend is paid. Exceeding the annual or lifetime TFSA limits triggers a 40% SARS penalty tax on the excess amount.

You can deduct contributions of up to 27.5% of your taxable income or your pay, whichever is higher, capped at R430 000 a tax year from 1 March 2026. Pension and provident fund contributions count toward the same cap. The deduction reduces the income SARS taxes, and it often leads to a refund.

If you run your own business or freelance, you can deduct trade magazines, digital subscriptions, online tools, and courses used to get better at your work. Salaried employees cannot claim general courses or magazines, but can deduct professional body subscriptions if membership is legally required for their job.

If you run a business, legitimate work meals, such as a quarterly planning lunch or a staff year-end lunch, are deductible from your income tax. Keep the till slip, and write down who attended and the business reason. You can deduct the cost against profit. You cannot claim VAT back on food and entertainment.

If you use your car for work travel beyond the daily commute, keep an accurate logbook. You can claim fuel, wear and tear, insurance, and business toll fees.

Sole proprietors and freelancers can write off gear needed to earn an income, including laptops, monitors, software, a work phone, and a home internet package.

From 1 March 2026, the first R50 000 of your capital gains for the tax year is excluded. That covers gains on shares and investment property. It is one exclusion for the year, not one exclusion for each sale.