Do you need to file a tax return in South Africa if you earn under R500,000?

Every year when tax season rolls around, many South Africans start to panic, especially those who think they might be in trouble for not submitting a return. 

But if you earn under R500,000 annually, the good news is you may not need to file one at all. 

That said, it’s not as simple as “under R500K = no tax return”. It depends on a few key factors. 

Here’s a clear breakdown based on the latest guidance from the South African Revenue Service (SARS), so you can avoid unnecessary admin, or worse, penalties.

You don’t need to submit a tax return if all these apply to you:

According to SARS, if your income for the tax year (1 March 2025 – 28 February 2026) is less than R500,000 and you meet all of the following conditions, you’re off the hook:

1. Your income came from only one employer for the full tax year with no job changes, no second job, no freelance hustle.
2. You didn’t earn any other income, such as rental from a property, interest from investments, freelance work, or dividends.
3. You received no taxable allowances like a car or travel allowance, subsistence, cellphone or computer allowances, or the use of a company car.
4. You’re not claiming any deductions, such as medical expenses, retirement annuity contributions, or Section 18A donations.
5. Your employer correctly withheld PAYE (Pay-As-You-Earn tax) on your behalf.

If all of the above applies to you, you do not need to submit a tax return for the 2026 tax year.

You do need to submit a return if:

Things get a bit more complicated if your situation doesn't tick all the above boxes.

Here’s when you must file a tax return, even if you earn below the R500,000 mark:

• You changed jobs or had more than one employer in the tax year.
• You earned additional income, such as rent from a granny flat, a side gig, freelance work, or taxable interest over R23,800 (or R34,500 if you’re 65 or older).
• You received a taxable benefit like a travel allowance or had the use of a company car.
• You want to claim tax deductions for medical expenses, retirement contributions, or donations to approved organisations.
• You made a capital gain or loss over R40,000 (for example, by selling shares or property).
• You held more than R250,000 worth of foreign assets or currency at any point during the tax year.
• SARS specifically sent you a tax return or requested one in writing - in which case, it's not optional.

The danger of getting it wrong

If you qualify for exemption but submit a tax return anyway and make an error, you could delay any possible refunds or even receive penalties for incorrect filing. 

On the other hand, if you should be filing and you don’t, you risk fines, interest, and even legal action down the line. It’s always best to double-check your status via the SARS eFiling portal or consult with a registered tax practitioner.

In short: if you earn under R500,000 a year from one job, with no extra income or deductions, and your employer handled your PAYE correctly you can probably skip the paperwork.

But if there’s even a small deviation from that list, you’re likely still on the hook to file.

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