Updated SARS Interest Rates Now In Effect
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SARS published revised Tables of Interest Rates which are effective from 22 January 2026 (for Tables 1 & 2) with Table 3 last updated on 20 November 2025. These tables set the official interest rates applicable in a range of tax contexts, from outstanding tax to below‑market loans, and are critical for accurate compliance, planning and client work.
What the Tables Cover
SARS divides interest rates into three main tables:
Table 1 — Interest on outstanding taxes and refunds showing the interest rate charged on overdue amounts and the rate payable by SARS when refunds are delayed. The rate under Table 1 is changing from 10.50% to 10.25% from 1 March 2026.
Table 2 — Interest on credit amounts: Applicable when taxpayers have credit balances (e.g., overpaid provisional tax). The rate under Table 2 is changing from 1 March 2026 from 6.50% to 6.25%.
Table 3 — Rates for interest-free or low‑interest loans: remains unchanged at 7.75%.
Practical Actions for Accountants
Update systems & templates: Ensure your tax calculators and models use the revised interest rates from the latest tables.
Review client positions: Check overdue tax interest charges and refund/credit interest calculations to confirm they align with the updated rates.
Check fringe benefit computations: For employer‑provided loans with interest below market rates, apply the updated Table 3 official rate to determine taxable benefits correctly.
Staying on top of these updates ensures compliance and accurate financial information. Remember to check the SARS Tables as there maybe different rates affecting a single financial year.
