Last updated: 11 October 2026 · Rates checked against: SARS — Interest and Dividends
Reviewed by Zia Shahid, Buzdy Banking Editor · Our methodology
In this guide
South Africa gives every individual an annual slice of interest free of tax. Above it, interest is added to your income and taxed at your own rate.
Under 65 — the first R23,800 of local interest each year is exempt
65 and older — the first R34,500
The exemption applies to interest from a South African source. SARS lists these same amounts unchanged across recent tax years.
The exemption
| Your age at year end | Exempt amount | Period |
|---|---|---|
| Younger than 65 | R23,800 | per year |
| 65 and older | R34,500 | per year |
Only the interest above the exemption is added to your taxable income, where it is taxed at your marginal rate.
It is for local interest only
The exemption applies to interest from a South African source. Foreign interest has no exempt portion — it is taxable from the first rand. For anyone holding an offshore account this is the detail that matters.
The amounts have not moved
SARS lists R23,800 and R34,500 across several consecutive tax years, including after Budget 2026. Because the thresholds are not indexed, their real value falls each year that inflation runs and the figure stays put.
Frequently asked questions
Is the exemption per account?
No. It is an annual amount per person, applied to total local interest.
Which age applies if I turn 65 during the year?
SARS determines it by your age on the last day of the tax year.
Does it cover interest from a foreign bank?
No. The exemption is for South African source interest; foreign interest is taxable in full.
Do I still declare interest below the exemption?
Interest is declared in the return; the exemption is then applied to it.
Sources
This is information, not tax advice. The figures above were checked against the source named at the top of this page on 11 October 2026. Tax rules change, usually with each annual budget. For a decision about your own money, speak to a qualified tax adviser in your country.
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