Homeowners are hoping Finance Minister Enoch Godongwana will offer relief from “bracket creep” – a “silent tax” that steadily erodes disposable income – during his 2026 Budget Speech on Wednesday. Limited changes to key property taxes amid fiscal constraints could maintain support for the residential market’s gradual recovery. This is according to Herschel Jawitz of Jawitz Properties, ahead of the 2026 National Budget by Finance Minister Enoch Godongwana on Wednesday.
With regards to the Transfer Duty Threshold, Jawitz says the current exemption threshold stands at R1.21 million, raised in the 2025 Budget to ease entry-level buying, with brackets adjusted for inflation. “Expect no upward adjustment this year, as analysts note Treasury’s revenue needs limit further relief, though stability would aid first-time buyers in a market with improving affordability.” “No increases in the exemption expected as this is essentially a luxury tax.” Fiscal discipline could further boost consumer and housing sentiment, and positive signals like municipal funding oversight may enhance property confidence, supporting already stronger demand and transaction volumes in the residential market, says Jawitz. In its budget preview, the Nedbank Group Economics says it does not anticipate significant tax announcements, but the Treasury is well-positioned to grant tax relief to individuals, following the recent trend of no adjustments.
It says the PAYE (pay as you earn) brackets were not adjusted for the effects of inflation in FY24 and FY25. “The tax windfall gives the National Treasury leeway to provide individual taxpayers with relief by adjusting tax brackets by at least 3%.” It also says that the transfer duties on properties will likely be little changed following the 10% adjustment in FY26.
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