SARS Penalties 2025 vs 2026: What Changed This Year
Year-on-year comparison of SARS penalty rates, interest rates, and enforcement changes between 2025 and 2026. Updated with the latest repo rate and legislative amendments.
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What Changed in SARS Penalties for 2026?
The core penalty structure under the Tax Administration Act has remained unchanged between 2025 and 2026. The ANC penalty brackets, late payment penalty rate (10%), and PAYE/VAT late submission penalty rate (10%/month) are all the same.
However, there are important changes that affect how much you actually pay:
Interest Rate Changes
The prescribed interest rate changes whenever the South African Reserve Bank adjusts the repo rate:
| Period | Repo Rate | Prescribed Rate (Repo + 3.5%) |
|---|---|---|
| Early 2025 | 8.25% | 11.75% |
| Mid 2025 | 8.00% | 11.50% |
| Late 2025 | 7.75% | 11.25% |
| 2026 (current) | 7.75% | 11.25% |
The interest rate has decreased slightly from 2025 to 2026, meaning late payment interest is marginally lower. However, the difference is small — the focus should remain on paying outstanding tax as quickly as possible.
SARS Enforcement Trends in 2026
While the penalty rates haven't changed, SARS's enforcement approach has shifted:
- Increased auto-assessments — SARS is auto-assessing more taxpayers, which means penalties for non-response are triggered more quickly
- Third-party data expansion — SARS now receives data from more institutions, making it harder to have undeclared income go undetected
- Faster penalty issuance — SARS systems are issuing ANC penalties more quickly after deadlines pass
- Tax Compliance Status emphasis — more institutions and government departments are requiring TCS verification, increasing the practical impact of penalties
Key Dates for 2026 Tax Season
| Event | Expected Date |
|---|---|
| Tax season opens (non-provisional, eFiling) | July 2026 |
| Auto-assessments issued | July–August 2026 |
| Non-provisional taxpayer deadline (eFiling) | October/November 2026 |
| Provisional taxpayer deadline | January 2027 |
| First provisional payment (IRP6) | 31 August 2026 |
| Second provisional payment (IRP6) | 28 February 2027 |
What This Means for You
The penalty rates are unchanged, but SARS is getting better at catching non-compliance faster. If you have outstanding returns from 2025 or earlier, the penalties are continuing to accumulate at the same rate. The best action is still to file and pay as soon as possible, then request remission.
Use our penalty calculators to check your current exposure — the rates for 2025 and 2026 are identical, so the calculators work for both years.
Related Guides
SARS Late Payment Interest Rate 2026: Current Rate & How It Works
Current SARS interest rate for late tax payments in 2026. Learn how the prescribed rate is calculated and use our free calculator to see your exposure.
SARS Administrative Penalties in 2026: Exactly How Much Will You Pay?
Complete guide to SARS administrative non-compliance penalties in 2026. See the full penalty table by income bracket and learn how to get penalties waived.
How SARS Calculates Penalties and Interest: The Complete Formula Guide
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