South African Pensioners Ask for Relief From VAT and Income Tax in Retirement

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October 23, 2026

South African pensioners have said the taxes they pay in retirement are too heavy, as daily costs keep rising. Some said they are ready to act together to ask for change.

The complaints were posted as comments on The South African’s Facebook page. Many of those who commented live on fixed incomes, such as the SASSA Older Person’s Grant or a private pension.

“No pensioner must pay VAT and TAX !!” Rita Botha wrote in her comment.

Other readers backed her view. They said older South Africans deserve a break after many years of working and paying into the economy.

Imelda Sue Carpyde wanted to take the matter further. “Where’s the petition let’s sign it,” she said.

Rina Cox thanked shops that give discounts to older customers. “Thanks to stores that do it. Give us names please if stores,” she said.

According to The South African, the comments show that many pensioners are looking for small savings wherever they can. Pensioners said everyday costs leave little money for taxes once basic needs are paid.

Older people already get some income tax relief from SARS. For the 2026/27 tax year, people aged 65 to 74 only pay income tax if they earn more than R153 250 a year.

People aged 75 and older only pay income tax if they earn more than R171 300 a year. For people younger than 65, the tax threshold is R99 000 a year.

The higher limits for older people come from two extra tax rebates. People aged 65 and older get a secondary rebate of R9 765. Those aged 75 and older also get a tertiary rebate of R3 249.

Because of these rebates, many pensioners who live only on a SASSA grant do not pay any income tax at all.

VAT works in a different way. It is charged on most goods and services that pensioners buy, no matter how old they are or how much they earn.

A small number of basic food items are zero-rated, which means no VAT is added to their price. Pensioners still pay VAT on many other everyday items they need.

The South African reported that the comments suggest many older people feel the current tax relief is not enough for those on tight budgets.

The publication has asked SASSA grant recipients to share their own stories through a reader survey.

Source: this article is based on reporting by The South African. Image: The South African. Written with the help of AI and published by the Tzaneen Voice News desk. See our Editorial Standards.