One easy way South Africans can save R10,000 on their taxes every year

South Africans can save tens of thousands of rands in tax each year by reviewing and optimising their deductions, retirement contributions, and investments, rather than relying solely on SARS’ auto-assessment.

With the 2026 tax season now fully underway, Wealthbit CEO Alex Cook said many people are choosing to bury their heads in the sand.

However, he warned that even though many people would prefer not to think about it, ignoring returns or failing to carefully check auto-assessments could cost taxpayers thousands.

“Tax is the largest annual expense for most South Africans. It’s bigger than rent and groceries, bigger than almost anything in their budget, yet most people never think about optimising it,” he said.

The difference between someone letting the South African Revenue Service (SARS) do its calculations and really understanding their tax position can amount to tens of thousands of rands a year.

“Bear in mind that money does not disappear,” Cook said. “It either goes to SARS, or it stays with you, where it can compound towards your future.”

However, most South Africans do not stop to question the taxes they pay. The various deductions, such as pension and medical aid, simply come off when their salary comes in.

Then once a year, they get an unexpected windfall or an unwelcome bill. Beyond this, the subject feels both vague and complicated.

In assessing what someone might owe or be owed, Cook recommended taking the following South African tax considerations into account:

• How they earn – Salary, freelance, commission income, or a combination of these
• How their income is structured – Sole employment versus a side business, for example
• What they contribute – Retirement funds, medical aid, tax-free savings, etc.
• Which benefits and credits are applicable – Medical tax credits, retirement deductions, rebates, etc.

“You need to fully understand all these moving parts to fully assess whether your current tax setup is beneficial or you are, in fact, leaving money on the table,” Cook said.

How South Africans can pay less tax

According to Cook, this is also a good moment for taxpayers to plan ahead. The 2026 Budget raised the annual tax-deductible retirement contribution cap from R350,000 to R430,000.

It was also announced that the tax-free savings account contribution limit would be increased from R36,000 to R46,000 a year.

Both have been effective from 1 March 2026. While neither change affects the return taxpayers are about to file for the past tax year, they widen the room they have to reduce taxes in the year ahead.

There are also other ways South Africans can reduce their tax burden. For example, keeping records of deductible expenses, such as qualifying business travel, can help lower taxable income.

Some remote workers and freelancers may also be able to claim home office expenses if they meet SARS’ requirements.

Taxpayers can also claim deductions for donations to approved public benefit organisations, provided they stay within the applicable limits and retain the required Section 18A certificates.

For those who use their personal vehicles for work, maintaining a detailed logbook can result in valuable tax deductions.

“Never forget that tax is one of the biggest levers in your financial system,” Cook said. “When you understand its effect on your income and contributions, your other financial decisions become much easier.”

He added that greater clarity means less stress, and with the right structure, South Africans’ money can work a lot harder for them.