Turnover Tax threshold raised from R1m to R2.3m
The 2026 Budget more than doubled the qualifying threshold for the micro-business turnover-tax regime — the first increase since 2009.
What changed
The qualifying annual turnover threshold for SARS Turnover Tax — the simplified single-tax regime that replaces income tax, VAT, provisional tax, CGT, and dividends tax for micro businesses — was raised from R1 million to R2.3 million in the 2026 Budget, with effect from 1 April 2026.
The bracket structure inside the regime is unchanged — 0% below R600,000, 1% above that to R950,000, R3,500 + 2% above R950,000 to R1.4m, and R12,500 + 3% above R1.4m. The change is the cap: businesses now qualify all the way up to R2.3m of taxable turnover instead of dropping out at R1m.
Why it matters
The threshold had been frozen at R1m since 2009. Inflation and SME growth meant a steadily shrinking pool of eligible businesses; the headline rate rose effectively as small operators outgrew the regime. The R2.3m threshold roughly restores 2009's purchasing-power range and aligns with the new VAT compulsory-registration threshold (also R2.3m), letting micro-businesses opt into either regime cleanly without straddling both.
What we updated
- Turnover Tax calculator — top bracket now capped at R2.3m. Values above the cap show a hard error message pointing to the Company Tax calculator.
- Page copy on the calculator, the homepage card, and the meta description all reference R2.3m.
- The footer bracket explanation now reads "…up to the R2.3m qualification cap".
Source
SARS · Turnover Tax · Budget 2026 FAQ — Threshold Changes · 2026 Budget Tax Guide (PDF).