Your Tax Year-End Checklist: Make the Most of It Before 28 February

The 2026/27 tax year ends on 28 February 2027. Budget 2026 raised several of the most useful allowances for the first time in years, and most of them are use-it-or-lose-it. Working through this checklist before the deadline could lower your tax and grow your savings.

1. Top up your tax-free savings account

The annual limit is now R46,000 (up from R36,000), with a lifetime limit of R500,000. Unused allowance does not carry over. Stay within the limit across all your TFSAs combined, because SARS charges a 40% penalty on any excess. Shariah-compliant funds are available within TFSAs.

2. Make the most of your retirement deduction

Contributions to pension, provident and retirement annuity funds are deductible up to 27.5% of the greater of your remuneration or taxable income, now capped at R430,000 a year (up from R350,000). If you have room left, a lump-sum retirement annuity contribution before the end of February can reduce this year's tax.

3. Use your capital gains exclusion

The first R50,000 of capital gains each year is now excluded from tax (up from R40,000). If you hold investments outside a TFSA or retirement fund, speak to your adviser about whether realising some gains within this exclusion makes sense.

4. Plan your giving

Individuals can now donate up to R150,000 a year free of donations tax (up from R100,000). This is a useful tool for passing wealth to family during your lifetime. Donations to approved public benefit organisations can also be tax-deductible, within limits, if you get a section 18A receipt, which is worth remembering when planning sadaqah and zakat.

5. Keep your medical records together

Medical scheme contributions and some out-of-pocket medical expenses can reduce your tax through medical tax credits. Keep your scheme's tax certificate and receipts for expenses the scheme did not pay.

6. Provisional taxpayers: check your second payment

If you are self-employed or earn significant income outside a salary, your second provisional tax payment is due by the end of February. Base it on a realistic estimate of the full year's income to avoid penalties.

Book your year-end review

Sapphire Global can work through this checklist with you, calculate your remaining allowances and put the right contributions in place before 28 February. Get in touch to book your review.

This article is general information only and does not constitute financial or tax advice. Limits quoted are those that apply to the 2026/27 tax year, as announced in Budget 2026.