South African financial education | Facts checked 10 November 2026
Good tax planning starts with knowing which relief you actually qualify for. This guide is for the 2027 year of assessment: 1 March 2026 to 28 February 2027. A deduction reduces taxable income; a tax credit reduces tax. They are not the same thing.
1. Check qualifying retirement contributions
Pension, provident-fund and retirement-annuity contributions share an overall deduction limit. For 2026/27, section 11F generally uses the least of R430,000; 27.5% of the greater of qualifying remuneration or taxable income; and the applicable taxable-income limit excluding taxable capital gains. Technical exclusions and your facts matter. It is not a separate allowance for each fund.
Illustration: where R100,000 of contributions is fully deductible against R500,000 of relevant taxable income, the starting amount falls to R400,000. The actual tax effect depends on the tax calculation and relief already allowed; contributing R100,000 does not produce a R100,000 refund.
2. Understand what a TFSA does
An approved tax-free investment gives relief on qualifying returns, rather than a deduction for contributions. The annual contribution limit is R46,000, and the lifetime limit is R500,000, across all your TFSAs. Withdrawals do not restore contribution room. Excess contributions attract a 40% charge on the excess. Use the formal provider-transfer process when appropriate.
3. Claim expenses only when the rules allow
For genuine business income, keep evidence of income-producing expenses and separate private use. Capital equipment may need a wear-and-tear allowance. Salaried employees face restrictions: professional subscriptions, cellphone costs and working from home are not automatically deductible. Home-office claims require strict use and employment tests and may affect the CGT treatment of your home.
4. Keep medical-credit records
For 2026/27, the monthly medical-scheme-fees credit is R376 for each of the first two eligible persons and R254 for each additional dependant. Additional qualifying medical expenses may produce an additional tax credit, subject to rules that depend on matters such as age and disability. Medical costs are not a blanket deduction from income.
5. Check section 18A donations
Not every charity donation qualifies. Check section 18A approval and obtain the required receipt or qualifying payroll evidence. The deduction is generally subject to a 10% limit using the prescribed taxable-income calculation; amounts disallowed only because of the limit may carry forward.
Two shortcuts to avoid
An assessed capital loss cannot be used against salary or ordinary income. Delaying receipt of money does not necessarily defer tax on income that has already accrued. Record transactions according to the law, and have timing questions checked before acting.
Open the free Tax Planning Checklist - 2026/27 helps you collect the records and questions for a tax-practitioner appointment.
Relevant GFS resources
- Personal Income Tax Estimator and Records Worksheet
- Capital Gains Tax Made Simple - free guide
- Free Monthly Budget Planner
Keep learning with Get Financial Savvy
Follow for more tips and information
@getfinancialsavvy
Facebook | Instagram | Pinterest
General education only, not personalised financial, investment, insurance, tax, medical or legal advice. Confirm current rules, policy terms and suitability with an appropriately qualified professional. No return, tax saving, claim payment or legal outcome is guaranteed.