The Ultimate Checklist: 10 Tax Deductions Most South Africans Overlook

Want a bigger tax refund? Don't miss these 10 common tax deductions. Learn how to claim for your RA, medical expenses, home office, donations, and more.

Filing your tax return isn't just about paying SARS what you owe—it's about making sure you don't pay a cent more than you have to.

Every year, thousands of South Africans overpay on their taxes simply because they don't know what they're allowed to claim.

A "tax deduction" is an expense that SARS allows you to subtract from your income, which lowers your taxable income and, therefore, reduces the tax you pay. This is the secret to getting a bigger tax refund.

Are you claiming everything you're entitled to? Here is the ultimate checklist of the 10 most common (and often overlooked) tax deductions.

1. Retirement Annuity (RA) Contributions

This is the big one. Any money you personally contribute to a Retirement Annuity (RA) fund is tax-deductible.

How it works: You can deduct up to 27.5% of your total taxable income, capped at a maximum deduction of R350,000 per year.
Source Code: 4006

2. Medical Aid Contributions (Medical Tax Credits)

This isn't a deduction but a tax credit, which is even better. A credit is a direct reduction of the final tax you pay, rand-for-rand.

How it works: It's a fixed monthly amount for you (the main member) and each dependant on your medical aid. For the 2026 tax year, these amounts are:
- R364 for the main member
- R364 for the first dependant
- R246 for each additional dependant
Source Code: 4116 (Your medical aid certificate has this)

3. "Out-of-Pocket" Medical Expenses

This is the second part of the medical claim. If you have medical expenses (like doctor visits, medicine, or procedures) that your medical aid did not cover, you may be able to claim them.

How it works: This is known as the Additional Medical Expenses Tax Credit (AMTC). The formula is complex, but as a rule: keep every single pharmacy slip and doctor's invoice.
Source Code: 4020

4. Donations to a Public Benefit Organisation (PBO)

If you donate to a registered charity, you can get a tax break.

How it works: The organisation must be a SARS-approved Public Benefit Organisation (PBO) and must issue you a Section 18A tax certificate. You can claim donations up to 10% of your taxable income.
Source Code: 4011

5. Home Office Expenses

If you work from home, you may be able to claim a portion of your household expenses.

How it works: The rules are extremely strict. You must have a dedicated room used exclusively for work (a dining room table doesn't count), and you must perform more than 50% of your duties in that office. If you qualify, you can claim a pro-rata portion of your rent, interest on bond, electricity, and internet.
Source Code: 4028 (See our full guide on this topic!)

6. Travel Allowance & Logbook

If you receive a travel allowance (source code 3701) and use your personal car for work, you must keep a logbook.

How it works: You record all your business kilometres. At tax time, you can claim a deduction for your business travel, which reduces the taxable portion of your allowance. Without a logbook, you can't claim.
Source Code: 4014

7. Wear and Tear on Personal Assets

If you use personal assets (like your laptop or phone) for work, you can claim the depreciation on that item.

How it works: You can't claim the full purchase price. You claim "wear and tear" over its expected lifespan (e.g., a laptop is typically written off over 3 years). This is most common for commission earners or freelancers.
Source Code: 4027

8. Rental Property Expenses

If you earn rental income, you are a provisional taxpayer. You can (and must) deduct all expenses incurred in generating that rental income.

How it works: Deductible expenses include interest on the bond, rates and taxes, levies, insurance, and any money spent on repairs and maintenance.
Source Code: 4210 (Income) & 4029 (Expenses)

9. Tax-Free Savings Account (TFSA)

This isn't a deduction, but a way to earn income that is 100% tax-free.

How it works: You can invest up to R36,000 per year (and R500,000 in your lifetime) into a TFSA. All the growth—all the interest and dividends you earn—is completely tax-free, forever. You don't even need to declare it.

10. Accounting Fees

If you pay a tax practitioner (or a tool like TaxClaw.ai!) to help you complete and file your income tax return, that fee is tax-deductible in the following tax year.

How it works: Claim the fee you paid last year on this year's return.
Source Code: 4027 (under 'Other Deductions')

Your Next Step

Go through your bank statements and find these expenses. Every deduction you find is money back in your pocket. Using a tool like TaxClaw.ai helps you track these expenses in real-time, so you never miss a claim again.

Disclaimer:This article is for informational purposes only and does not constitute financial or tax advice. Tax laws are complex and subject to change. We strongly recommend consulting with a registered tax practitioner to address your specific circumstances. TaxClaw.ai is a tool to assist you in managing your tax obligations and is not a substitute for professional advice.

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TaxClaw's AI model is reviewed by SARS Registered Tax Practitioner PR-0106041.
Tax filings are submitted by SARS Registered Tax Practitioner PR-0092910