SARS Updates Subsistence Allowance Rates for 2026/27

Posted 02 March 2026 Written by Acts Online
Category Tax

Brought to you by SA Accounting Academy: The South African Revenue Service (SARS) has gazetted new subsistence allowance rates for travel within the Republic, effective from the start of the 2026 tax year.

In terms of the Income Tax Act, No. 58 of 1962, SARS has issued Notice 7174 in Government Gazette 54218, prescribing the daily and overnight subsistence allowance amounts. These determinations apply in respect of years of assessment commencing on or after 1 March 2026.

The rates are utilized to determine the portion of a subsistence allowance that is deemed to have been actually expended by a recipient. Under section 8(1) of the Act, these amounts are excluded from the employee’s taxable income, provided the employee is obliged to spend at least one night away from their usual place of residence for business purposes.

The notice provides specific rates for:

  • Incidental costs only within the Republic; and
  • Meals and incidental costs for travel within the Republic.

Click here to download Notice 7174 (GG 54218).

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact is channelled through employer-managed payroll and reimbursement processes for business travel.
  • For your business: Update payroll software and internal travel policies to reflect the 1 March 2026 rate changes to ensure accurate tax-free reimbursement processing and PAYE compliance.
  • For your clients: Advise corporate clients to review their subsistence allowance structures against the new Gazette 54218 rates to maintain compliance with section 8(1) of the Income Tax Act.

Originally published at https://accountingacademy.co.za/news/read/new-sars-subsistence-amounts-2

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