The Budget Speech by Finance Minister Enoch Godongwana brought a wave of clarity for South African households. After years of “belt-tightening,” the 2026 National Budget has introduced significant adjustments to tax thresholds and investment limits – the first major shifts we’ve seen in some categories for nearly a decade.

Here is a breakdown of the key takeaways for your retirement planning and your healthcare provision.

Part 1: Strengthening Your Retirement & Wealth

Treasury has signaled a clear desire to help South Africans bridge the “savings gap” by providing more room to grow money without the tax drag.

More Room for Tax-Free Growth:

The annual contribution limit for Tax-Free Investment (TFI) products has increased from R36,000 to R46,000. You can now put away roughly R3,833 per month (up from R3,000) with zero tax on interest or gains. Note: The lifetime limit remains at R500,000.

A Higher Ceiling for Retirement Deductions:

The annual limit to retirement fund deductions has been raised from R350,000 to R430,000. High-income earners now have significantly more tax-deductible space to lower their taxable income.

Capital Gains Tax (CGT) Relief:

To account for inflation, the annual CGT exclusion for individuals increases from R40,000 to R50,000, while the exclusion in the year of death increases from R300,000 to R440,000.

Part 2: Healthcare Stability & Tax Credits

Beyond retirement, the Budget provided welcome certainty on a cautious National Health Insurance (NHI) rollout, while protecting the affordability of private healthcare.

1. NHI Implementation Remains on Hold

The government reaffirmed that the NHI will not be implemented until all legal challenges are resolved. No new funding was allocated for a rollout; instead, Treasury prioritised pressing needs in the current public health system, such as supporting doctors and HIV/AIDS programmes.

2. Medical Tax Credits: Protected and Increased

In a win for medical scheme members, Treasury resisted calls to phase out tax credits to fund the NHI. Instead, they increased them for the first time since 2023:

• Primary Member & First Dependant: Increases from R364 to R376 per month.

• Additional Dependants: Increases from R246 to R254 per month.

3. Expanded Eligibility

The Budget proposes extending these tax credits to members of certain statutory medical schemes that weren’t previously covered, provided they meet governance and solvency requirements. This is expected to benefit thousands of additional South Africans.

Bottom Line

The 2026 Budget is largely a “pro-saver” and “pro-stability” budget. By increasing investment limits and protecting medical tax credits, the government is leaving slightly more money in the hands of those planning for the long term.

These changes take effect from 1 March 2026.

Now is the perfect time to review your monthly contributions.